If you’re looking to buy a home, the current real estate environment can be very daunting.Between the pandemic, rising inflation, and the housing crisis, becoming a homeowner seemsmore unattainable than ever. In this article, you will find an overview of…
- Calgary saw rapid growth across all residential housing types throughout the pandemic, due to low supply and high demand.
- In March 2022, the average price of a home in Calgary was around $538.283
- While growth is expected throughout 2022, some forecasts predict more conservative price increases than in 2020-2021.
Calgary Housing Market Outlook (2022)
The Calgary real estate market will continue to see growth throughout 2022, albeit at a lower magnitude than the last two years. Having undergone significant trend growth across all residential housing categories since the beginning of the pandemic, Calgary has become one of the most popular housing markets in the country. While sales activity will remain strong throughout 2022, it may not continue at the same record levels set in 2021.
Current Calgary MLS® data suggests that the average price of a home in Calgary in March 2022 is around $535,000, with approximately 6,000 new listings in the last 28 days. Turnaround for new homes is roughly 18 days, from list to sale. Overall, the average selling price of a home in Calgary has trended upwards throughout the pandemic, with peak levels seen in March 2022. Ultimately, Calgary’s housing market remains a strong seller’s market, shifting from a balanced market in early 2020. Inter-provincial migration, a growing economy, open spaces, and relatively low housing costs have all been factors in the city’s teeming demand, and will continue to drive demand throughout 2022.
Who’s buying Calgary real estate?
First time homebuyers
Driven by surging house prices in Ontario and British Columbia, many first time buyers are looking to western Canada, and Calgary in particular, to find a place. With relatively low average house prices, good quality of life, a strong economy and proximity to nature, Calgary has become a hotspot market for many first time home owners and young couples in Canada. With the average price of a semi-detached house hovering around $585,000 at the end of Q1 2022, and townhouses and condos around the $300,000 mark, Calgary has seen an influx of first time homeowners over the last two years, partly driven by consistently low interest rates throughout the pandemic. Interestingly, according to a report by RE/MAX, single-detached homes were the most popular property type among first time buyers driving demand in Calgary in 2021.
Calgary was a hotspot for so-called ‘move over’ buyers in 2021 and into 2022. With the country opening up in the wake of COVID-19 lockdowns, many domestic homeowners have chosen the city as their new home. Calgary’s condo market has seen particular attention from foreign investment, given its uncharacteristic levels of supply relative to other property types, its relatively low price barriers, and the economic and cultural improvements the city has seen over the last few years.
Calgary is home to multiple high-end neighborhoods, many of which lay in close proximity to the city limits. During the pandemic, Calgary’s luxury market saw demand surge from move-up buyers, with luxury homes in Calgary starting at around ¾ of a million – a claim that cannot be made for other major markets in the country like Vancouver or Toronto. By some measures, Calgary’s luxury housing market grew by over 200%. According to a recent report by Sotheby’s International Realty Canada, sales of luxury properties valued at $1million or more rose 222% in 2021 compared to 2020, with a total of 1,101 such property transactions taking place.
Average Home Prices in Calgary
The pandemic put upwards pressure on pricing in Calgary due to significant out-of-province migration, with Calgary becoming one of the most popular destinations for Canadians leaving other major markets, like BC and Ontario. Across all residential types, prices have increased, with particularly strong gains in the semi-detached and townhouse categories.
|Property Type||Average Price (March 2022)||Year-on-year Price Change (%)||Units Sold (March 2022)||New listings|
|All property types||$538.283||+6%||4107||5485|
Calgary Breakdown by Region for 2021-2022
Here are some of the most popular neighborhoods in Calgary in 2022, according to a recent housing report by Zolo. To find out how much monthly mortgage payments might cost you in one of these areas, check out our mortgage calculator.
|Location||Average sale price in 2021|
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Reports Indicate Strong 2022 for Calgary Housing Market
2022 is set to beat even the high sales numbers seen by the end of 2021. According to the Calgary Real Estate Board (CREB), over 27,500 units sold by the end of last year – an increase of nearly 72% compared to 2020, making 2021 a record year in home sales for Calgary. Market trends, namely high demand and low supply, are set to continue throughout the year, and will continue to push house prices up.
According to Canada Mortgage and Housing Corporation (CMHC), a total of 1,159 of new houses were started in Calgary in February, an increase of nearly 100% on the number of new homes started in the city during February 2021. Calgary will continue to be a seller’s market, with price increases expected throughout the year.
Finally, a recent report from PwC has suggested that rising migration levels from larger markets outside Alberta will help keep demand stable throughout 2022, with Calgary experiencing the fourth-highest migration levels of any Canadian city in 2021.
Frequently asked questions
Is the Calgary housing market going to crash?
It’s unlikely that we’ll see a crash in Calgary real estate during 2022. Demand is set to increase across all residential property categories, with the first quarter of 2022 showing even higher sales numbers and price increases than a record Q4 in 2021. While rising interest rates may have fuelled demand in the beginning of 2022, as buyers rallied to lock-in at low rates, demand in Calgary’s housing market still outpaces supply by a considerable amount, even after the Bank of Canada raised rates for a second time in April 2022.
Will Calgary housing prices increase in 2022?
Calgary’s relative affordability, low inventory, high demand and high net migration, plus other economic factors, will continue to drive up housing prices in the city throughout 2022. By some estimates, there will be an increase in the aggregate price of homes in Calgary of 8% in the fourth quarter of 2022, compared to the year prior. Conversely, however, other sources have suggested the market could cool off by the end of the year, with the Calgary Real Estate Board claiming a decline of 7.5% in sales, due to rising interest rates. Ultimately, it’s likely that we will see conservative price increases throughout 2022, albeit not at the record levels we saw throughout the latter half of last year.
How do I get approved for a mortgage in Calgary?
The easiest way to get approved for a mortgage in Calgary is to start by exploring the best rates available, and then calculating how much mortgage you can afford, given factors like your down payment and the price of the property. Mortgage approval depends on the type of lender you want to go with, e.g. a conventional, or ‘prime’ mortgage lender, or B-Lender. Approval guidelines vary based on the lender you want to go with, so it’s worth discussing these factors with one of our mortgage advisors to see what solution fits your financial situation best.
The city of Calgary has fared well during the pandemic in terms of its real estate market. If you’re looking to join thousands of Canadians moving to Alberta and getting a mortgage in 2022, be sure to explore the best rates available first. If you’re ready to start your search for a home in Calgary, get in touch with one of our trained mortgage professionals today, and we’ll help you take the next steps.
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