Calgary Real Estate Market Stabilizes After Months of Growth

Calgary’s real estate market is showing signs of stabilization after a period of significant price increases. According to the latest report from Royal LePage, the aggregate price for homes in Calgary rose by just 0.4 percent in the second quarter of 2023, reaching $696,500. The median cost of a single detached home also increased, albeit slightly more, by 1.2 percent to $806,500. This trend suggests a shift towards a more balanced market, driven by robust home construction.

The report indicates that while the overall prices are stabilizing, the condominium market is experiencing a decline. The average price for condos fell by 1.6 percent year-over-year, settling at $296,300. Corinee Lyall, broker and owner of Royal LePage Benchmark, attributes this drop to increased construction activity, which has led to a rise in available inventory. She noted, “Detached homes are maintaining their value, whereas prices for condos and townhomes have started to soften.”

Market Dynamics and Future Predictions

Despite a slight dip in sales activity, the Calgary market is still characterized by healthy competition, especially in desirable neighborhoods. Lyall emphasized that properties deemed reasonably priced in good locations continue to attract buyers. “It depends on location — anything that seems like a good price in a reasonable location still sells well,” she explained.

The pandemic initially hindered Calgary’s housing market compared to other regions in Canada. However, recent years have seen a resurgence, and as the market becomes more balanced, the Royal LePage report predicts a 3 percent increase in aggregate housing prices year-over-year as the economy remains resilient. Calgary’s growing population, now approximately 1.6 million, signifies ongoing demand, further supported by ambitious development plans, including two proposed towers near the Stampede grounds that would become the tallest buildings in western Canada.

Comparative Real Estate Landscape

When comparing Calgary’s housing prices to other major Canadian cities, the differences are striking. The median price of a single detached home in Vancouver reached $2.25 million during the same period, while Toronto reported $1.68 million. In contrast, Saint John, New Brunswick, recorded a much lower median price of $301,000. Notably, Edmonton offers a significantly lower median price for single detached homes at $531,000, which has sparked interest from buyers seeking affordability.

Real estate veteran Justin Havre acknowledges the uncertainty surrounding future market trends, particularly due to factors such as the U.S.-Canada tariff situation and fluctuating energy prices. However, he concurs with the Royal LePage analysis that increasing inventory is tilting the market in favor of buyers. “Real estate is all about supply and demand, and we’re seeing more inventory coming in,” he stated.

Havre also noted a shift in buyer behavior, as many buyers who previously faced limited options now find themselves in a position to negotiate better terms and prices. He remarked on the affordability rush towards Edmonton, where the sales market has remained robust compared to Calgary’s recent softening.

As Calgary’s real estate landscape evolves, the combination of new developments, increasing inventory, and competitive pricing may shape the market for buyers and sellers alike in the months ahead.