Market Update - January 2024

In 2023, Calgary's real estate market journeyed through a nuanced landscape marked by pivotal shifts and robust resilience. A distinctive feature was the noticeable ease in sales compared to the preceding year's zenith. Despite this deceleration, the market remained buoyant with an impressive transaction count of 27,416—a testament to its sustained vigor that soared beyond pre-pandemic norms.

Chief Economist Ann-Marie Lurie, entrusted with analyzing Calgary's real estate pulse at CREB®, articulated that while housing demand encountered a degree of restraint due to escalated lending rates, the market's robustness persevered. This endurance stemmed predominantly from an influx of migrants propelling the market forward. Notably, there was a shift in buyer preferences toward more budget-friendly housing alternatives, particularly within the apartment condominium segment.

A pivotal observation throughout the year was the incessant disparity between housing supply and the burgeoning demand. This perpetual chasm ushered in a wave of unexpectedly robust price escalations. Inventory levels, averaging a staggering 44 percent decline over the 10-year average, contributed significantly to an unprecedented dearth of available properties.

The lack in inventory predominantly impacted homes priced below $1,000,000, where the supply remained significantly below the two-month mark for the better part of the year. Such persistent conditions played a pivotal role in accelerating the city's average benchmark price to an unprecedented peak.

Although the momentum of annual benchmark price growth decelerated from the vigorous 12 percent in 2022 to a more measured six percent in 2023, the pricing trajectory exhibited noteworthy resilience, especially in comparison to other real estate markets across the nation.

The overarching narrative of Calgary's real estate landscape in 2023 was defined by:

1. Sustained Demand: Powered by robust migration, particularly favoring affordable housing options.

2. Constrained Supply: Consistent inventory deficits, averaging a 44 percent decline compared to the 10-year average.

3. Historical Price Highs: Witnessed an unparalleled surge in prices, setting a new benchmark.

4. Moderated Yet Strong Growth: Despite a slower pace compared to the preceding year, price growth remained robust at approximately six percent.

The intricate interplay between demand, supply dynamics, and pricing exemplified Calgary's real estate market resilience and fluctuating economic landscapes, marking it as a promising landscape for prospective buyers and investors alike for 2024.

Check back monthly for our Calgary Market Updates!