January 2023 was the slowest month for Calgary’s housing market in the last two and-a-half years, according to the Calgary Real Estate Board (CREB)..Total sales in the city were 1,199, 40% lower than January 2022, but generally flat compared to the 1,204 sales in December 2022..Calgarians are biding their time in terms of selling their homes, as demonstrated in new listings in January falling to the lowest levels since the late 1990s. Listings dropped in all four categories of homes, year-over-year, led by semi-detached (-44%), single-family (-32%), townhomes (-24%), while apartment listings declined only 1%. .“At the same time, sales activity did slow compared to the high levels reported last year, but remained consistent with long-term trends,” says Ann-Marie Lurie, CREB’s chief economist. “However, there has been a shift in the composition of sales as detached homes only comprised 47% of all sales.”.“Higher lending rates are causing many buyers to seek out lower-priced products in our market, however, the higher rates are likely also preventing some move-up activity in the market impacting supply growth for lower-priced homes. This is causing differing conditions in the housing market based on price range.”.At the end of January there were 2,451 active listings, 25% lower than January last year and 43% lower than long-term trends for the month. .“While overall inventory levels are slightly lower than last January, there is significant variation by price range,” says Lurie. “Homes priced under $500,000 reported year-over-year inventory declines of nearly 30% while inventory levels improved for homes prices above that level.”.“Although conditions are not as tight as last year, lower supply levels are preventing a significant shift toward balanced conditions and prices did trend up slightly over last month, breaking the seven consecutive month slide.” .“As of January, the benchmark price reached $520,900, 5% higher than last January, but still well below the May 2022 high of $546,000.”.Here’s how the four segments performed in January.Single-family.“Sales saw the largest decline despite the year-over-year rise in inventory levels,” says Lurie. “Higher lending rates are cooling demand for higher-priced homes which is supporting inventory gains. Meanwhile, a limited supply of lower-priced products is preventing stronger sales in the lower price ranges.”.Lurie says a variation in the market is causing divergent trends in pricing as prices have trended down in the higher-priced City Centre, while still reporting some modest gains in other districts of the city. .There were 561 single-family home sales at an average price of $670,897 compared to 617 sales at an average of $619,600 in December..Semi-Detached.“Sales slowed relative to last year’s levels, but remained above levels achieved before the pandemic. At the same time, a pullback in new listings has left inventory levels below the already low levels reported last January,” says Lurie. “Like the single-family sector, semi-detached homes have seen shifts where the demand remains strong for lower-priced product relative to the supply likely causing divergent trends in pricing.”.Semi-detached sales reached 111 at an average of $583,025 compared to 87 sales at an average of $563,000 in December..Townhome.“Sales slowed over last year’s record high but remained well above long-term trends for the month. Sales would have likely been stronger if more listings came onto the market,” says Lurie. “In January, new listings dropped over the previous year and were over 20% below long-term trends. The adjustments in both sales and new listings did little to change the low inventory scenario and the months of supply remained below two months in January.”.209 townhomes sold in January at an average of $372,820 compared to 189 sales averaging $358,300 in December..Apartment Condominium.“Apartment condominiums did not see the same pace of decline as other property types in January partly due to the level of new listings coming onto the market,” Lurie. “Nonetheless, inventory levels remained well below long-term trends for the month and have not been this low in January since 2014.”.“The adjustments to both sales and inventory left this sector with a supply that's lower than levels seen at the start of 2022. The shift to affordable options is also impacting prices within the apartment condominium sector..In January, prices trended up from December levels driven by strong gains in the lower priced districts of the Northeast and East. .There were 318 apartment sales in January at an average price of $283,993, compared to 311 sales at an average of $274,800 in December.
January 2023 was the slowest month for Calgary’s housing market in the last two and-a-half years, according to the Calgary Real Estate Board (CREB)..Total sales in the city were 1,199, 40% lower than January 2022, but generally flat compared to the 1,204 sales in December 2022..Calgarians are biding their time in terms of selling their homes, as demonstrated in new listings in January falling to the lowest levels since the late 1990s. Listings dropped in all four categories of homes, year-over-year, led by semi-detached (-44%), single-family (-32%), townhomes (-24%), while apartment listings declined only 1%. .“At the same time, sales activity did slow compared to the high levels reported last year, but remained consistent with long-term trends,” says Ann-Marie Lurie, CREB’s chief economist. “However, there has been a shift in the composition of sales as detached homes only comprised 47% of all sales.”.“Higher lending rates are causing many buyers to seek out lower-priced products in our market, however, the higher rates are likely also preventing some move-up activity in the market impacting supply growth for lower-priced homes. This is causing differing conditions in the housing market based on price range.”.At the end of January there were 2,451 active listings, 25% lower than January last year and 43% lower than long-term trends for the month. .“While overall inventory levels are slightly lower than last January, there is significant variation by price range,” says Lurie. “Homes priced under $500,000 reported year-over-year inventory declines of nearly 30% while inventory levels improved for homes prices above that level.”.“Although conditions are not as tight as last year, lower supply levels are preventing a significant shift toward balanced conditions and prices did trend up slightly over last month, breaking the seven consecutive month slide.” .“As of January, the benchmark price reached $520,900, 5% higher than last January, but still well below the May 2022 high of $546,000.”.Here’s how the four segments performed in January.Single-family.“Sales saw the largest decline despite the year-over-year rise in inventory levels,” says Lurie. “Higher lending rates are cooling demand for higher-priced homes which is supporting inventory gains. Meanwhile, a limited supply of lower-priced products is preventing stronger sales in the lower price ranges.”.Lurie says a variation in the market is causing divergent trends in pricing as prices have trended down in the higher-priced City Centre, while still reporting some modest gains in other districts of the city. .There were 561 single-family home sales at an average price of $670,897 compared to 617 sales at an average of $619,600 in December..Semi-Detached.“Sales slowed relative to last year’s levels, but remained above levels achieved before the pandemic. At the same time, a pullback in new listings has left inventory levels below the already low levels reported last January,” says Lurie. “Like the single-family sector, semi-detached homes have seen shifts where the demand remains strong for lower-priced product relative to the supply likely causing divergent trends in pricing.”.Semi-detached sales reached 111 at an average of $583,025 compared to 87 sales at an average of $563,000 in December..Townhome.“Sales slowed over last year’s record high but remained well above long-term trends for the month. Sales would have likely been stronger if more listings came onto the market,” says Lurie. “In January, new listings dropped over the previous year and were over 20% below long-term trends. The adjustments in both sales and new listings did little to change the low inventory scenario and the months of supply remained below two months in January.”.209 townhomes sold in January at an average of $372,820 compared to 189 sales averaging $358,300 in December..Apartment Condominium.“Apartment condominiums did not see the same pace of decline as other property types in January partly due to the level of new listings coming onto the market,” Lurie. “Nonetheless, inventory levels remained well below long-term trends for the month and have not been this low in January since 2014.”.“The adjustments to both sales and inventory left this sector with a supply that's lower than levels seen at the start of 2022. The shift to affordable options is also impacting prices within the apartment condominium sector..In January, prices trended up from December levels driven by strong gains in the lower priced districts of the Northeast and East. .There were 318 apartment sales in January at an average price of $283,993, compared to 311 sales at an average of $274,800 in December.
