Calgary Real Estate Market 2023 Review!

Calgary Housing Market Update – 2023 Year in Review

Calgary, January 3, 2024

Introduction: The Calgary housing market witnessed a dynamic year in 2023, characterized by the interplay of strong migration patterns and a persistent shortage of housing supply. Despite a moderate easing in sales compared to the previous year's peak, the market remained remarkably resilient, recording 27,416 sales, significantly surpassing long-term trends and pre-pandemic activity.

Sales Dynamics: While the overall sales figures in 2023 exhibited a slight dip, the market showcased its endurance with activity levels far exceeding historical norms. Of particular interest was the noticeable shift in buyer behavior, with a growing preference for more affordable apartment condominium-style homes.

Impact of Lending Rates: Higher lending rates posed a challenge to housing demand during the year. However, the market's strength was buoyed by robust migration levels. According to CREB® Chief Economist Ann-Marie Lurie, "Higher lending rates dampened housing demand this year, but thanks to strong migration levels, housing demand remained relatively strong, especially for affordable options in our market."

Supply Challenges: Throughout the year, the real estate landscape in Calgary faced a significant hurdle in the form of persistently low housing supply levels. This shortage, with inventory averaging a 44 percent decline over the 10-year average, exacerbated the demand-supply imbalance.

Market Dynamics: The months of supply consistently remained below two months, particularly for homes priced below $1,000,000, underscoring the tight conditions prevalent in the market. This scarcity contributed to Calgary achieving a new record high in housing prices.

Record High Prices: Despite the average annual benchmark price growth slowing from 12 percent in 2022 to nearly six percent in 2023, the city witnessed strong price growth, outpacing several markets in the country. The persistently tight conditions throughout the year propelled Calgary to achieve a new record high in housing prices.

Conclusion: In summary, the Calgary housing market in 2023 demonstrated remarkable resilience, driven by the confluence of strong migration trends and a persistent shortage of housing supply. While challenges such as higher lending rates and supply constraints influenced market dynamics, the city achieved a new pinnacle in housing prices. For a comprehensive analysis, the full stats release on December's housing market for Calgary and surrounding areas is available