Calgary Housing Market Trends

A Comprehensive Analysis of Calgary Housing Market Trends: 

If you're interested in buying or selling a home in Calgary, it's important to stay up-to-date on the latest housing market trends. The Calgary housing market has been experiencing some changes in recent years, and it's important to understand what's happening in order to make informed decisions.

One trend that has been affecting the Calgary housing market is the issue of affordability. According to a report by WOWA, the Calgary housing market is losing affordability fast. The benchmark home price rose 9.5% year-over-year and 0.3% monthly to $605,300. This makes it increasingly difficult for first-time homebuyers to enter the market, and can also make it challenging for existing homeowners to upgrade to a larger or more expensive property.

Another trend affecting the Calgary housing market is the rise in demand for condo apartments. While the detached house market is experiencing mixed signals, the condo apartment market continues to be red hot. This is according to a report by Mortgage Sandbox, which highlights the fact that Calgary's house purchase demand is middling while apartment demand is on the rise. This trend could be driven by a number of factors, including the lower cost of entry for condo apartments compared to detached homes, and the fact that many younger buyers are looking for low-maintenance living options.

Overview of the Calgary Housing Market

If you are considering buying or selling a home in Calgary, it is important to have a clear understanding of the current state of the housing market. As of June 2024, the Calgary housing market is showing signs of growth and stability.

According to recent reports, the average house price in Calgary is around $614,854, with detached homes averaging around $823,000. While the benchmark home price has risen by 9.5% year-over-year, there has been a 0.9% yearly decline in the number of home sales in Calgary.

Despite the decline in sales, the market is still showing signs of strength. The sales-to-new-listings ratio (SNLR) is currently at 83%, indicating a seller's market in Calgary. This means that there is a higher demand for homes than there are available listings, which can lead to increased competition and higher prices.

It is important to note that the Calgary housing market is losing affordability fast, with the average home price at $612,772. However, there are still opportunities for buyers to find affordable homes in certain neighborhoods and areas.

Overall, the Calgary housing market is stable and showing signs of growth. If you are considering buying or selling a home in Calgary, it is important to work with a knowledgeable real estate agent who can help you navigate the market and find the best opportunities for your needs.

Historical Price Trends in Calgary

Over the past few years, Calgary's housing market has experienced fluctuations in prices. However, over the long-term, the market has shown a steady increase in housing prices.

According to CREA Statistics, the median sale price for single detached homes rose 13.4% on a year-over-year basis to $688,500 in the first quarter of 2024. This was a new record for the median sale price. The median sale price for townhouse and row units also rose 21.6% on a year-over-year basis to $450,000 in the first quarter of 2024.

Another source, Houseful, reports the median list price of homes in Calgary for Single Family Homes was $711,498 in May 2024.

Despite some ups and downs in the market, Calgary's housing prices have remained relatively stable over the long-term.

It is important to note that the housing market can be influenced by many factors, including economic conditions, population growth, and government policies.

Current Demand in Calgary Housing

If you are looking to buy a home in Calgary, it is important to understand the current demand in the housing market. According to a recent report by WOWA, the Calgary housing market is seeing a decline in affordability, with a 9.5% year-over-year increase in benchmark home prices and a 12.4% year-over-year increase in the average price of detached homes. Despite these increases in prices, there is still strong demand for homes in Calgary.

One factor driving demand in the Calgary housing market is population growth. According to a report by The City of Calgary, the total estimated housing units in Calgary increased by 15.1% from Q1 2023 to Q1 2024. This increase in housing units reflects the growing population in Calgary, which is attracting more people to the city and creating demand for housing.

Another factor driving demand in the Calgary housing market is the city's strong economy. Calgary is home to many large companies in the oil and gas, technology, and financial sectors, which provide job opportunities and attract workers to the city. This strong economy is contributing to the demand for housing in Calgary, as more people move to the city for work and seek out homes to buy or rent.

Overall, the current demand in the Calgary housing market is strong, with population growth and a strong economy driving demand for homes. While prices have increased in recent years, there are still opportunities to find affordable housing in Calgary, particularly in areas outside of the city center. If you are looking to buy a home in Calgary, it is important to work with a knowledgeable real estate agent who can help you navigate the market and find a home that meets your needs and budget.

Supply Dynamics of Calgary Real Estate

The supply of homes in the Calgary housing market is a crucial factor that determines the overall health of the real estate market. According to WOWA, the Calgary housing market is currently experiencing a lack of supply, which is pushing home prices higher. This trend is expected to continue in the near future, as demand for homes in the city remains strong.

The number of home sales in Calgary saw a 0.9% yearly decline, with only 3,092 homes sold in the city as of June 4th, 2024. This decline in sales is due to the lack of supply, which is causing buyers to face stiff competition for available homes. As a result, home prices have risen significantly, with the benchmark home price increasing by 9.5% year-over-year and 0.3% monthly to $605,300.

The Calgary housing market is expected to witness ongoing price growth, reaching its peak demand in March 2024. According to Find Your Calgary, the projected average benchmark price for Calgary's housing market in 2024 stands at $745,000. This growth presents opportunities for both buyers and sellers, as new developments and economic initiatives shape the landscape of Calgary's real estate market.

Overall, the supply dynamics of the Calgary housing market are currently favoring sellers due to the limited availability of homes. However, this trend is expected to shift in the near future as new developments and initiatives come into play. It is important to stay up-to-date on the latest trends and developments in the Calgary housing market to make informed decisions about buying or selling a home in the city.

Impact of Economic Factors on Calgary Housing

The Calgary housing market is influenced by various economic factors that shape its dynamics. These factors encompass employment rates, migration trends, and industry developments. As a city experiencing rapid growth, Calgary's robust economy is attracting thousands of new residents annually.

Employment rates play a significant role in the Calgary housing market. When the job market is strong, people are more likely to purchase homes. In contrast, when the job market is weak, people are more likely to rent. According to Calgary Housing Market Insights, the city's unemployment rate has been declining steadily, which is a positive indicator for the housing market.

Migration trends also impact the Calgary housing market. When people move to the city, they need a place to live. This increased demand for housing can drive up prices. Calgary's robust economy is attracting thousands of new residents annually, which is driving the demand for housing. This increased demand for housing has led to a significant increase in housing units, as reported by The City of Calgary's Housing Review Q1 2024.

Industry developments also impact the Calgary housing market. When industries are growing, they need more workers, which can drive up demand for housing. Calgary's economy is diverse, and various industries are growing, such as technology, healthcare, and energy. This growth is creating more job opportunities and driving up demand for housing.

In summary, the Calgary housing market is influenced by various economic factors, including employment rates, migration trends, and industry developments. These factors impact the demand for housing and can drive up prices. However, Calgary's robust economy is attracting thousands of new residents annually, which is driving the demand for housing and creating a positive outlook for the housing market.

Calgary Housing Market by Districts

When it comes to the Calgary housing market, different districts can have different trends and prices. Here is a breakdown of the market by district:

Inner City

The Inner City district of Calgary is known for its proximity to downtown and its historic neighborhoods. This area is popular with young professionals and families who want to be close to the action. The housing market in this area tends to be more expensive than other parts of the city, with an average home price of $800,000. However, there are still some affordable options available, especially in the Beltline and Bridgeland neighborhoods.

Northern Calgary

The Northern Calgary district is a mix of residential and commercial areas, with a range of housing options available. This area includes neighborhoods like Beddington, Huntington Hills, and Panorama Hills. The average home price in this area is around $500,000, making it a more affordable option for families and first-time homebuyers.

Southern Calgary

The Southern Calgary district is known for its suburban feel and family-friendly neighborhoods. This area includes neighborhoods like Acadia, Lake Bonavista, and Woodlands. The average home price in this area is around $600,000, making it a popular choice for families who want a larger home and yard.

Eastern Calgary

The Eastern Calgary district is a mix of residential, commercial, and industrial areas. This area includes neighborhoods like Dover, Forest Lawn, and Marlborough. The average home price in this area is around $400,000, making it one of the more affordable options in the city.

Western Calgary

The Western Calgary district is known for its luxury homes and upscale neighborhoods. This area includes neighborhoods like Aspen Woods, Discovery Ridge, and Springbank Hill. The average home price in this area is around $1 million, making it a popular choice for high-end buyers who want a larger home and more amenities.

Overall, the Calgary housing market is diverse and offers a range of options for buyers in different districts. Whether you're looking for an affordable starter home or a luxury property, there is something for everyone in Calgary's housing market.

Residential vs. Commercial Real Estate Trends

When it comes to the Calgary housing market, it's important to differentiate between residential and commercial real estate trends.

Residential Real Estate Trends

Residential real estate in Calgary has experienced steady growth over the past few years. According to WOWA, the average home price in Calgary for May 2024 was $612,772, which is 11% higher than the previous year. Detached home average prices were $822,873, showing a 12% yearly growth and a 3.3% monthly increase. Semi-detached home average prices were $702,960, exhibiting a 17% yearly growth and a 2.2% monthly increase.

The demand for residential properties in Calgary is high, with a 7% year-over-year increase in sales, according to WOWA. The low inventory has resulted in a seller's market, which means that buyers have to compete for available properties, driving up prices.

Commercial Real Estate Trends

Commercial real estate trends in Calgary are also showing steady growth. According to CBRE, the office vacancy rate in Calgary decreased to 12.3% in Q1 2024, which is the lowest it has been in five years. This decrease in vacancy rates indicates a growing demand for commercial properties.

The retail sector in Calgary is also experiencing growth, with new developments and expansions of existing spaces. According to The City of Calgary, the real estate market in Calgary reflected strength, resilience, and growth in 2023, with the retail sector being one of the strongest performers.

Overall, both residential and commercial real estate in Calgary are experiencing growth and demand. The low inventory of residential properties has resulted in a seller's market, while the decrease in office vacancy rates and growth in the retail sector indicate a growing demand for commercial properties.

New Construction and Development Trends

If you are looking to buy a new home in Calgary, you will be pleased to know that new construction and development trends are on the rise. According to Calgary Newsroom, the development industry delivered a record high of 15,393 homes in 2023, which is an 11% increase over 2022. The number of multi-residential homes also increased by 49%, and secondary suites increased by 43%. This indicates that there is a high demand for new homes in Calgary.

In addition to the high demand, new construction and development trends are also focused on sustainability and energy efficiency. Builders are incorporating features such as solar panels, high-efficiency appliances, and smart home technology to reduce energy consumption and lower utility bills. This is not only good for the environment but also for your wallet.

Another trend in new construction and development is the focus on community amenities. Developers are building homes in neighborhoods that offer easy access to parks, schools, shopping, and entertainment. This trend is especially popular among families with children who want to live in a community that offers a high quality of life.

Overall, the new construction and development trends in Calgary are positive and offer homebuyers a variety of options to choose from. With the high demand for new homes, sustainable features, and community amenities, you are sure to find a home that meets your needs and preferences.

Government Policies Affecting Calgary Housing

The City of Calgary has implemented several policies to address the ongoing housing affordability crisis. The Housing Strategy, approved by Council in September 2023, outlines 98 actions to ensure Calgarians have an affordable place to call home. The strategy aspires to create 3,000 new non-market homes and assist the market with an additional 1,000 homes per year. The strategy also includes actions recommended by the Housing and Affordability Task Force.

The Government of Alberta has also implemented policies to address housing affordability. In 2022, the government launched the Alberta Affordable Housing Strategy, which aims to create 4,100 new affordable housing units by 2026. The strategy includes measures such as increasing funding for affordable housing, streamlining the development approval process, and providing incentives for developers to build affordable housing.

The federal government has also introduced policies to address housing affordability. In 2021, the government launched the Rapid Housing Initiative, which provided $1 billion in funding to create up to 3,000 new affordable housing units across Canada. The government also introduced the First-Time Home Buyer Incentive, which provides shared equity mortgages to first-time homebuyers to help them purchase a home.

In addition to these policies, the government has also implemented measures to address the impact of the COVID-19 pandemic on housing. The Canada Emergency Rent Subsidy and the Canada Emergency Wage Subsidy have provided financial support to landlords and businesses to help them weather the pandemic. The government has also introduced a mortgage payment deferral program to help homeowners who are struggling to make their mortgage payments due to the pandemic.

Overall, these government policies have had a significant impact on the Calgary housing market. The increase in funding for affordable housing and the streamlining of the development approval process have helped to increase the supply of affordable housing. The First-Time Home Buyer Incentive has helped to make homeownership more accessible for first-time homebuyers. The COVID-19 support programs have helped to prevent a wave of evictions and foreclosures, which could have had a devastating impact on the housing market.

Forecasting Calgary's Housing Market Future

If you're considering buying or selling a home in Calgary, you're likely wondering what the future holds for the housing market. While it's impossible to predict the future with absolute certainty, there are some trends and factors that can give us an idea of what to expect.

One important factor to consider is the current state of the economy. According to a recent report by Find Your Calgary, Calgary's economy is expected to remain stable and grow moderately in the coming years. This is good news for the housing market, as a strong economy typically leads to increased demand for homes.

Another factor to consider is population growth. Calgary has seen steady population growth in recent years, and this trend is expected to continue. As more people move to the city, demand for housing will likely increase, which could drive up prices.

However, it's important to keep in mind that the housing market is subject to a wide range of factors, including interest rates, government policies, and global economic conditions. For example, if interest rates rise significantly, it could make it more difficult for some buyers to afford homes, which could lead to a decrease in demand and prices.

Overall, while there are some positive signs for Calgary's housing market, it's important to approach any investment with caution and do your own research before making any decisions. By staying informed and working with a knowledgeable real estate professional, you can make the best decision for your unique situation.

Frequently Asked Questions

What is the projected trend for Calgary housing prices in the next year?

As per the Calgary Housing Market Report of Jun. 4th, 2024, the benchmark home price rose 9.5% year-over-year and 0.3% monthly to $605,300. The average home price is $612,772. The detached home average price increased by 12.4% year-over-year to $823k. It is expected that the housing prices in Calgary will continue to rise in the near future.

How have Calgary house prices changed over the past decade?

According to the Calgary Housing Market Outlook, the average price of resale residential homes sold across Calgary in April 2024 was $587,300, which is an increase of 9.9% compared to a year ago. Over the past decade, the housing prices in Calgary have been fluctuating. However, the current trend shows a steady increase in prices.

Is the Calgary real estate market expected to favor buyers or sellers in the near future?

As per the Calgary Housing Market Summary, the sales-to-new-listings ratio (SNLR) of 83% indicates a seller's market in Calgary for the year 2024. This means that the demand for housing is higher than the supply, which favors the sellers.

What are the predictions for Calgary's housing market growth by 2030?

As per the Calgary Housing Market Insights, the government's goal of expanding the city to 100 million people by 2100 presents opportunities for both buyers and sellers. This growth is expected to continue in the coming years, and the housing market is poised for sustained demand.

Are there any indications of a housing price drop in Calgary in the near term?

According to the Calgary Housing Market Report, there are no indications of a housing price drop in Calgary in the near term. The benchmark home price rose by 9.5% year-over-year, and the detached home average price increased by 12.4% year-over-year.

What factors are currently influencing the Calgary real estate market?

Several factors are currently influencing the Calgary real estate market, including population growth, job opportunities, and economic initiatives. The Calgary Housing Market Insights report suggests that the government's ambitious goal of expanding the city to 100 million people by 2100 is a significant factor that is driving the demand for housing. Additionally, new developments and economic initiatives are shaping the landscape of Calgary's real estate market.