Based on a strong spring selling season, home sales in Calgary reached a record high with double-digit price growth in 2022..Sales came in at 29,672, a 7% year-over-year increase, with the aggregate benchmark price for 2022 reaching $529,317 up 12% from 2021..The single-family homes category had a 14% year-over-year price increase; the townhome sector saw the benchmark price rise 15%; semi-detached homes prices increased 12% and; a year-over-year 9% increase for condo-apartments..Sales set monthly records in the spring, including the highest number of sales ever recorded in a single month, 4,104, in March..Since then, the Bank of Canada raised its overnight rate seven times, taking the steam out of the market with higher mortgage rates..“Housing market conditions changed significantly throughout the year as sales activity slowed following steep rate hikes throughout the latter part of the year,” said Calgary Real Estate Board chief economist, Ann-Marie Lurie. “However, Calgary continues to report activity that is better than levels seen before the pandemic and higher than long-term trends for the city.”.“At the same time, we have faced persistently low inventory levels, which have prevented a more significant adjustment in home prices this year.”.Continuing the trend that began in April, month-over-month sales decreased in December, reaching 1,204, down from 1,648 in November..December’s aggregate benchmark price reached $518,800, up 8% from December 2021. Year-over-year double digit price increases in December came in the single-family home category (+10%) and the townhome sector (+14%). The aggregate benchmark price for semi-detached homes and condo-apartments both saw 9% increases, from December 2021..Higher mortgage rates have also affected supply, as sellers hold off listing their homes for sale, thereby supporting price growth..“Over the past several months, the pullback in sales was also met with a significant pullback in new listings, causing further declines in inventory levels,” says Lurie. “As of December, there were 2,214 units available in Inventory, making it the lowest level of inventory reported for December in over a decade.”.Here’s how each category of homes performed..Single-family.“The single-family home market has felt most of the impact of higher rates as a pullback in sales in the year’s second half contributed to the year-to-date decline of over seven percent,” says Lurie. “While there have been some gains in new listings over the last quarter, much of the growth has occurred in the market's upper-end, supporting more balanced conditions.”.“However, supply levels for lower-priced homes remain low relative to the sales activity, causing that market segment to continue favouring the seller.”.The December benchmark price was $619,600, down slightly from $623,427 in November..Semi-Detached.“Further declines in sales in December contributed to the year-to-date sales decline of nearly 3%,” says Lurie. “While sales have eased relative to last year’s record levels, activity is still far stronger than long-term trends and levels reported prior to the pandemic..New listings have been trending down, resulting in lower inventory and months of supply, compared to historical levels, says Lurie.“While conditions are not as tight as earlier in the year, there has been some downward pressure on prices,” she says..The benchmark price in December was $563,000, compared to $587,101 in November..Townhome.“Significant reductions in new listings weighed on sales over the last few months of the year,” says Lurie. “Despite recent shifts, annual sales in the city reached a new record high, with 5,153 sales in 2022. Not only was it a record year, but sales were nearly double long-term trends, as higher lending rates are driving more purchasers toward the more affordable townhome option.”.Lurie says December’s inventory level was at the lowest since 2013..“This has ensured that this segment of the market continues to favour the seller,” she says..The December benchmark price was $358,300, down from $371,853 in November..Apartment Condominium.“Unlike other property types, apartment condominium sales continue to rise above the previous year’s levels throughout the year,” says Lurie. “This caused year-to-date sales to rise by 50% to 6,221 units, a new record high.”.The growth is due to increased demand for affordable product, as well as renewed investor interest based on rental rate growth, says Lurie..“Gains in this sector were also possible thanks to the growth in annual new listings,” she says..“However, like other sectors, the increase in new listings was not enough to outweigh the sales growth, and inventory levels trended down to levels not seen since 2013.”.The December benchmark price was $274,800, compared to 291,970 in November.
