The Calgary Real Estate Board (CREB) reports that the average price of a single-family home in Calgary reached $636,167 in the first quarter of 2023, and is expected to continue to rise. CREB also predicts that there will be around 20,000 transactions in the year, but the rate of price growth should slow. The market is favoring sellers, and with a low level of inventory, buyers have to enter into a protracted one-upmanship procedure to get what they want. Inflation remains a dominant theme and population growth due to interprovincial migration is also influencing the market.
The Calgary Real Estate Board reported that the city’s housing market had its lowest March inventory level in 17 years and home sales decreased by 40.6% annually in March. The benchmark residential home price increased by 1% annually and 2% monthly, creating market conditions that favor sellers. Migration is supporting demand, but low inventory levels are causing existing homeowners to be reluctant to list their homes due to difficulty finding an acceptable housing alternative and higher lending rates.
The Calgary Real Estate Board says the city set a new April record last month as the benchmark price of a home sold reached $550,800.
The Alberta board says the price amounts to a two per cent increase from March and a 1.19 per cent increase from a year ago.
The increase in the benchmark price came as the actual average price of a home sold in the city last month was $549,524, a roughly three per cent rise from a year ago.
The board says the number of sales tumbled almost 21 per cent to 2,690 over the same period, leaving the market with tighter conditions than were seen earlier in the year and when compared with April.
New listings fell nearly 32 per cent since last April to 3,133.
While sales activity is at a level the board expected, Ann-Marie Lurie, the Calgary board’s chief economist, says the steeper pullback in new listings has ensured that supply levels remain low.
“The limited supply choice is causing more buyers to place offers above the list price, contributing to the stronger than expected gains in home prices,” Lurie said in a statement.