The fall season in Calgary is bringing not only crisp weather and colourful foliage but also a red-hot real estate market. September 2023 marked an extraordinary moment in the city’s housing history, with a staggering 2,441 homes sold, smashing previous records. This impressive achievement follows a consistent year-over-year growth trend in home sales that’s been ongoing for the last four months. Yet, despite this remarkable upswing, year-to-date sales are still trailing behind last year’s figures by nearly 12 percent.
The Challenge of Supply
One key issue in Calgary’s housing market is the limited number of homes available for sale. While more homes were listed in September 2023 compared to the same period last year, the supply is not keeping pace with the soaring demand. This imbalance between supply and demand keeps pushing prices higher.
The influx of people moving to Calgary from other provinces seeking homes has generated robust demand. This, coupled with the impact of higher interest rates, has created a challenging environment for buyers in their quest to find suitable homes.
Price Trends Across Home Types
Let’s take a closer look at different types of homes:
- Detached Homes: While the number of detached homes sold has increased compared to last year, it’s mostly the more expensive ones that are selling quickly. Homes priced below $700,000 are in short supply, and buyers face tough competition. In September 2023, the benchmark price for detached homes reached $696,100, an increase of over 11 percent from last year.
- Semi-Detached Homes: In September 2023, more homes were listed for sale than were sold, which is a positive sign. However, inventory levels are still quite low. Prices have been increasing steadily, with some neighbourhoods seeing more significant price increases than others. The benchmark price for semi-detached homes in September 2023 was $621,300, up 11 percent from last year.
- Row Properties: Row houses are in demand, but their availability is still limited. While the situation is improving slightly, not enough of them are available for sale. This shortage of homes is pushing prices higher. The benchmark price for row properties in September 2023 was $419,400, a 17 percent increase from last year.
- Apartment Condominiums: Apartments have seen a surge in demand, with sales hitting a record high. Tight rental market conditions and higher lending rates have driven people to buy apartments. Even though more apartments are listed for sale, the market remains highly competitive, pushing prices upward. The benchmark price for apartments in September 2023 was $312,800, nearly 15 percent higher than last year.
Across the board, prices are trending upwards, reflecting the overall trend of homes becoming more expensive compared to the previous year.
Looking Ahead
Calgary’s housing market continues to be dynamic and competitive. Buyers find it challenging to secure their dream homes due to limited supply and rising prices. Buyers and sellers must stay informed as the market evolves and adapt their strategies accordingly.
In summary, Calgary’s housing market saw record-breaking sales in September 2023, but the supply of homes for sale remains a significant challenge. The strong demand, coupled with higher interest rates, continues to impact the market dynamics, making it essential for everyone involved to stay flexible and well-informed in this ever-changing real estate landscape.
Click here to explore the detailed monthly stats package for the City of Calgary.
