As we step into 2024, it's essential to reflect on the real estate landscape of Calgary in 2023. The Calgary Real Estate Board (CREB®) recently released its statistics package, shedding light on the highs and lows that characterized the market over the past year. Let's delve into the key insights provided by the report.
Sales Performance:
Check out the full Stats Package HERE
Sales Performance:
The real estate market in Calgary experienced a noticeable shift in 2023. While the number of sales, totaling 27,416, did ease compared to the peak in the previous year, the figures remained significantly higher than pre-pandemic levels. This resilience in sales is attributed to the city's strong migration levels, counteracting the impact of higher lending rates on housing demand.
Affordable Housing Takes the Spotlight:
One striking trend was the shift in buyer preferences towards more affordable options, particularly in the form of apartment condominiums. Despite the challenges posed by higher lending rates, the demand for affordable housing options remained robust, contributing to the overall strength of the market.
Supply-Demand Dynamics:
Throughout 2023, the Calgary real estate market grappled with persistently low supply levels compared to the high demand. Inventory levels consistently lagged behind long-term trends, averaging a 44% decline over the 10-year average. This discrepancy between supply and demand created a favorable environment for sellers, resulting in stronger-than-expected price growth.
Record-Low Inventory and Price Impact:
The months of supply remained well below two months for homes priced below $1,000,000, further emphasizing the tight market conditions. This scarcity of available properties contributed to the city achieving a new record high average annual benchmark price. Despite a slight slowdown in price growth from 12% in 2022 to nearly 6% in 2023, Calgary's real estate market outperformed many other regions in the country.
Insights from CREB® Chief Economist:
Ann-Marie Lurie, the Chief Economist at CREB®, highlighted the role of strong migration levels in sustaining housing demand. She noted, "Higher lending rates dampened housing demand this year, but thanks to strong migration levels, housing demand remained relatively strong, especially for affordable options in our market." Lurie also emphasized the impact of low supply levels, which contributed to stronger-than-expected price growth.
Conclusion:
Calgary's real estate market in 2023 showcased resilience in the face of challenges. The shift towards affordable housing options, coupled with strong migration, played a pivotal role in maintaining demand. Persistent supply shortages, however, created a seller's market, leading to a new record high in average annual benchmark prices. As we move forward, these trends will likely shape the real estate landscape, making it crucial for both buyers and sellers to stay informed and adapt to the evolving market dynamics.
Check out the full Stats Package HERE