Calgary Real Estate Market Trends
Calgary has long been considered one of the best cities in Canada to live. In the past 10 years, the strength of the area's oil & gas economy have created an incredible environment for lifestyle and real estate investment, a trend analysts expect will continue as the price of oil recovers.
While Calgary's real estate market is far more resilient to commodity prices than it once was, the city is not immune. Despite home sales showing Yr/Yr declines ranging between ten and forty percent in 2015, most home prices have not dropped by more than three or four percent. In fact, in the under $500,000 price range, most homes are selling for the same or more than they did in the same period in 2014.
Calgary Real Estate Market: October 2015 Stats
Calgary has Seller's Market under $500K & Buyer's Market above $750K
- The Median Detached Home Sale Price was $470,250, down 5% from Oct. 2014
- The Average Detached home sale price was $518,956 down 7% vs. Oct. 2014
- The Median apartment sale price was $286,000 up 1% vs. Oct. 2014
- The Average apartment sale price was $318,210 down 2% from Oct. 2014
- Average Days on Market (DOM) was 38 Days for detached Calgary homes sold vs. 36 days last October. Average DOM for Calgary apartment listings was 49 days vs. 30 days last Oct.
- There were 1,109 detached homes & apartments sold on the Calgary MLS® System in Oct 2015, 34% fewer than the same period last year. 872 detached Calgary homes sold last month, 33% fewer than last Oct. There were 237 Calgary apartments sold, 39% less than the same period last year *Sales reflect residential metro Calgary MLS® system sales only*
- There are 3.9 months of detached Calgary home inventory on the market, 15% higher than the same time last year. Apartment condo inventory is now 5.8 months of supply vs. 2.9 months last Oct. Listing inventory reflects the time required to sell all current listings if no additional listings were added
- Absorption rate for detached Calgary homes was 30% in October.
Calgary apartment condos saw a 17% absorption rate last month.
- In spite of the ongoing slowdown in the economy, the market continues to be competitive for great homes - last month 8% of all detached homes sold in Calgary went for list price or higher. At the same time, 16% of all detached homes sold in Oct 2014 were at or above list price
Search for Calgary Homes:
2015 Market Forecast
(January 2015) The Calgary Real Estate Board released their 2015 Market Forecast on January 15th, suggesting that the strong demand experienced over the past 2 years will pullback due to the significant drop in oil prices.
CREB® predicts sales of Calgary homes and condos will be 4.1% lower this year. CREB® remains bullish on the Calgary economy, and predicts detached home prices to rise 1.8%, attached home prices to rise 1.5%, and apartment condo prices to increase 1.0% from 2014 levels.
I'm not as bullish as CREB® on the outlook for 2015. As of January 22 2015, year-to-date home sales are down 37% while condo sales are off by 30% *vs. first 22 days of 2014*.
2014 Market Trends
The Calgary Real Estate Board (CREB®) predicted growth in sales to continue in 2014, projecting home sales to increase 2.4%, while condo sales would grow by 6.4%. Sales increase for the year were 5.5% for Calgary homes & 18.2% for Calgary condos.
While CREB® anticipated Calgary home prices would increase 3.8% in 2014, they actually rose by 7.6%, Calgary condo prices were projected to rise by 5.3%; 2014 saw an 8.8% increase for condominiums.
December 2014 Update: Calgary's real estate market was well ahead of the projected CREB® forecast, both for number of sales and increases in selling price.
The median price of a Calgary home was $484,000 in 2014, up 7.6% from 2013 *median price*. Sales of Calgary homes increased 5.5% in 2014 vs 2013 home sales. Meanwhile, the median price of a Calgary condo for 2014 climbed to $310,000, up 8.8% vs 2013 on the back of an 18% increase in condo sales.
2013 Market Trends
Higher prices & sales volume continued in 2013. Total Calgary sales rose 11% over 2012's numbers and both average & median home prices reached new record levels. The median price of a Calgary home rose 7.1% in 2013 ($450,000), while the median price for a Calgary condo increased 6.3% ($284,900).
2012 Market Trends
2012 marked a breakout year for Calgary real estate, with the greatest number of sales since 2007 and a new record for average home prices.
2008 - 2011 Market Trends
2008 began much as 2007 had ended. Home & condo prices had experienced a slight downward correction following the 2005-2007 bubble, but demand was still strong and prices were stable. Following the collapse of Lehman Brothers in September 2008, the Calgary market became sluggish, with a 14% drop in Calgary home prices and a 20% correction in price of condos. Prices did begin to rise again mid-2009, but demand remained realtively weak until the end of 2011.
2003-2007 Market Trends
Back in 2003, the typical Calgary home was worth about $196,000 while the average Calgary condo cost less than $140,000. 2004 marked the year crude oil prices climbed above $40 per barrel, at which time Calgary's economic boom began.
The price of Calgary homes rose 26% by the end of 2005, condo prices increased by 35%. 2006 brought a staggering 47% increase in home prices vs the previous year, while condo prices rose 36% that year. By mid 2007, Calgary property prices, both homes and condos, had risen by 115% vs. the 2003 prices. The market at that point took a breather, even correcting slightly by Christmas time.
It's not just Calgary home for sale listings that are performing well, either. Alberta's booming economy attracts workers from all over the country in the oil and high tech sectors, pushing up demand for all types of property. Calgary is now second in the nation to Toronto for its concentration of corporate head offices, with investment return for downtown property commonly topping 50 per cent. Calgary is also the nation leader for industrial real estate return.
Property Market Trend
Calgary property is in high demand, and the average Calgary home is now selling in just 35 days *Sept 2014*. Many of the hottest properties only remain on the MLS® System a day or so before they are sold, as buyers seek to close the deal with as little competition as possible. If you're in the market for a Calgary home for sale, and want a leg up on other buyers, consider working with a qualified Calgary real estate agent - it's a decision that will save you considerable time and money.
Please fill out our contact form, or call 403-703-2404 for assistance anytime you need to know more about Calgary real estate or any property that interests you. When you're ready to take the next step toward purchasing a home, we're here to help.
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