---

Market Report Summary for June 2023

• Calgary’s average home sale price increased 1.8% year-over-year to $518,100 for June 2023. While in comparison, provincially, the average home sale price was down 0.3% from a year ago to $457,800.
• The median price of a single-family home in Calgary increased by 2.2% year-over-year to $584,700 for June 2023. While in comparison, provincially, the median single home sale price was down 0.3% from a year ago to $512,500.
• Calgary’s townhouse/rowhouse price increased by 8.4% year-over-year to $397,000 for June 2023. While in comparison, provincially, the townhouse/rowhouse sale price is up 6.3% from a year ago to $343,600.
• The median condo price in Calgary increased by 9.7% year-over-year to $297,500 for June 2023. While in comparison, provincially, the median condo sale price is also up 8.6% from a year ago to $255,600.
• The median rent for a 1-bedroom apartment in Calgary increased by 24.8% year-over-year to $1,686 for June 2023. 

---

Calgary Housing Market Outlook in 2023

As of June 2023, data from the Calgary Real Estate Board (CREB) indicates that the average price of resale residential homes sold across Calgary in June 2023 was $541,800, a slight increase of 6.5% compared to a year ago. 

“While higher lending rates are impacting sales activity as expected, we are seeing a stronger pullback in new listings, keeping supply levels low and supporting some stronger-than-expected monthly price gains,” said CREB Chief Economist Ann-Marie Lurie. “Prices are still below the May 2022 peak, which is still early in the year. However, if we do not see a shift in supply, we could see further upward pressure on prices over the near term.”

With a sales-to-new-listings ratio of 73% and a supply of under two months, the market has struggled to move into balanced territory, causing further upward pressure on home prices. The unadjusted benchmark price increased by nearly 2% over January and last year’s prices. However, Calgary’s benchmark price is comparably up more than 25% compared to 3 years ago.

Month	Average Price	Units Sold	New Listings	SNLR	Market
January	$520,900	1,199	1,852	64.74%	Balanced
February	$530,900	1,740	2,389	72.83%	Selllers
March	$541,800	2,432	3,318	73.30%	Sellers

The sales to new listings ratio (SNLR) is the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market where buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 70% is considered a seller’s market. 

Who’s Buying Calgary Real Estate?

Until recently, the primary demographics driving demand in Calgary’s residential property market were those looking to upsize their homes, foreign investors looking to purchase an investment property, professionals who recently immigrated to Canada in the past 5 years, and out-of-province migrants advancing their careers in and around Calgary. 

With the passing of the omnibus Bill C-32 legislation, including the foreign buyers’ ban and anti-flipping tax, the Calgary homebuyers’ demographic may be shifting away from foreign investment. However, it remains to be seen whether efforts to limit foreign buyers in Calgary will have an impact; according to Statistics Canada, foreign investors make up less than 5% of homeowners in Calgary’s total homeownership. However, that number significantly jumps to when considering properties bought by non-Alberta residents, especially in the province’s current boom.

Multi-property Investors

According to an article by the Calgary Herald, investors and multi-property owners accounted for over a third of homebuyers in 2021, particularly the numbers were higher in Ontario, British Columbia, and Nova Scotia. There were no specific numbers for Calgary but it can be implied that many Ontario and BC residents looking for affordable real estate investments will aim to purchase in Calgary, where market rents are enough to cover the cost of carrying an investment property.

Upsizing Buyers

Upsizing by buyers has driven Calgary’s demand for single-family homes, which showed the highest year-on-year price increase of all property types from $458,300 in February 2020, which is still more than 27% lower than today’s price at $584,700. Upsizing buyers continued to explode some of Calgary’s suburbs, like those in Arbour Lake, Haysboro, Fairview, Cougar Ridge, Hillhurst, Walden or Capitol Hill.

Immigration & Out-of-province Migration

While the pandemic saw thousands of homebuyers leaving urban areas searching for more space and affordable housing, new immigrants are making Calgary homes a continued surge. Many Ontarians, British Columbians, and residents from other provinces continue to move to Alberta – most relocating to its bustling economic capital of Calgary. According to this report by Re/Max, the federal government expects to bring an additional 2 million new immigrants to Canada – many of whom will still choose to settle in Alberta and Calgary.

First-Time Homebuyers

Getting a mortgage in Calgary as a first-time buyer can be less challenging than in many other large cities in Canada. Calgary has similar property tax rates to Toronto or Montreal, with over 0.71% of property value. However, the location and tax rates are much more palatable compared to the suburbs of Brooks (1.13%) and Lacombe (1.11%).

While programs like the First Time Home Buyer Incentive are in place to help people afford homes in Calgary, this has yet to do much to offset affordability as the stress test makes it harder to qualify. At the same time, the Bank of Canada keeps rates elevated – adding a barrier to qualifying for a home without a combined household income over $140,000. 

Given the slowdown over the last 12 months in home prices, Calgary remains a difficult market to purchase a first home without outside financial assistance

Calgary Regional Housing Data June 2023

Calgary’s housing market breakdowns on a regional level.

Region	Sales	New Listings	SNLR	Benchmark Price	Average Price	Median Price	Market
City of Calgary	2,432	3,318	73%	$541,800	$535,743	$485,000	Sellers
Airdrie	154	203	76%	$497,400	$487,892	$466,700	Sellers
Chestermere	38	80	48%	$643,200	$635,160	$577,500	Balanced
Rocky View Region	145	266	55%	$629,600	$735,160	$592,500	Balanced
Foothills Region	123	165	75%	$552,500	$658,514	$570,000	Sellers
Mountain View Region	57	65	88%	$408,100	$376,156	$350,000	Sellers
Kneehill Region	21	14	150%	$221,500	$291,502	$232,000	Sellers
Wheatland Region	33	48	69%	$407,600	$384,736	$407,000	Balanced
Willow Creek Region	21	24	88%	$277,300	$356,126	$321,000	Sellers
Vulcan Region	6	13	46%	$284,200	$360,000	$324,000	Balanced
Bighorn Region	38	77	49%	$875,300	$863,209	$805,000	Balanced

Calgary Rental Breakdown June 2023 

Each $100K in mortgage balance costs an average of $550 per month for principal and interest on the current insured fixed rate and $620 per month on the current insured variable rate.  Rates used for calculation are those offered on insured purchases with less than a 20% downpayment over 25 years of amortization.  Each 0.25% change in mortgage rates impacts the monthly payment by $14 to $16 on a 25-year amortization.

Calgary Rental Prices Compared to Other Canadian Cities

As the table below shows, Calgary is the most expensive city for rentals in Alberta and 19th nationally.

Province	Total	Bachelor	1Bdr Average	2Bdr Average	3Bdr Average	Total YoY Change
Vancouver BC	$3,146	$2,276	$2,765	$3,727	$4,200	18.70%
Burnaby BC	$2,866	$1,747	$2,286	$3,171	$3,638	19.90%
Toronto ON	$2,818	$1,987	$2,516	$3,301	$3,890	22.40%
Etobicoke ON	$2,587	$1,967	$2,285	$2,848	$2,888	21.40%
Mississauga ON	$2,549	$1,876	$2,253	$2,688	$3,047	21.50%
Brampton ON	$2,518	$1,709	$2,143	$2,624	$2,909	29.10%
North York ON	$2,497	$1,657	$2,174	$2,706	$3,376	24.10%
Kelowna BC	$2,402	$1,530	$1,932	$2,728	N/A	3.60%
Barrie ON	$2,363	$1,575	$2,019	$2,583	$2,626	12.30%
Surrey BC	$2,342	$1,938	$1,951	$2,497	$2,627	17.90%
Halifax NS	$2,215	$1,732	$2,089	$2,425	$2,890	20.10%
Victoria BC	$2,214	N/A	$2,004	$2,513	$3,325	7.30%
Kitchener ON	$2,195	$2,324	$1,944	$2,405	N/A	21.00%
Hamilton ON	$2,106	$1,640	$1,890	$2,308	$2,369	21.40%
Ottawa ON	$2,090	$1,625	$1,925	$2,363	$2,485	15.40%
Oshawa ON	$1,979	$1,348	$1,825	$2,123	$2,185	9.30%
London ON	$1,978	$1,394	$1,775	$2,123	$2,559	24.60%
Kingston ON	$1,921	$1,633	$1,700	$2,136	$2,278	13.20%
Calgary AB	$1,890	$1,276	$1,686	$2,048	$2,393	24.90%
Montreal QC	$1,876	$1,365	$1,619	$2,155	$2,455	10.90%
Winnipeg MB	$1,478	$1,066	$1,320	$1,615	$2,055	13.60%
Lethbridge AB	$1,314	$1,056	$1,212	$1,387	$1,600	17.80%
Edmonton AB	$1,300	$940	$1,147	$1,475	$1,574	11.20%
Saskatoon SK	$1,176	$877	$1,122	$1,234	$1,438	9.30%
Regina SK	$1,139	$849	$1,072	$1,290	N/A	13.90%

Alberta Rental Prices Compared to Canada and the Provinces

As the data below show, Alberta is the most affordable province after Saskatchewan for rents among the provinces, with a population of over 1 million inhabitants.

Average Rents by Housing Type

Province	Total	Bachelor	1Bdr Average	2Bdr Average	3Bdr Average
AB	$1,461	$981	$1,307	$1,628	$1,668
BC	$2,441	$1,904	$2,168	$2,857	$3,342
MB	$1,463	$1,066	$1,310	$1,588	$1,814
NS	$2,167	$1,723	$2,029	$2,368	$2,586
ON	$2,401	$1,802	$2,180	$2,649	$2,954
QC	$1,839	$1,329	$1,589	$2,035	$2,340
SK	$1,097	$856	$1,034	$1,173	$1,351
CA	$1,937	$1,395	$1,749	$2,127	$2,402

Rental Growth by Housing Type

Province	Total YoY Change	Bachelor YoY Change	1Bdr YoY Change	2Bdr YoY Change	3Bdr YoY Change
AB	13.40%	0.60%	13.00%	14.80%	7.30%
BC	13.20%	8.40%	11.00%	13.00%	6.40%
MB	12.60%	13.80%	14.60%	12.50%	5.60%
NS	20.80%	14.10%	22.70%	21.00%	33.60%
ON	17.10%	19.00%	16.90%	15.80%	13.60%
QC	22.20%	2.80%	9.80%	9.90%	6.00%
SK	8.00%	13.30%	8.70%	7.70%	7.00%
CA	10.90%	4.90%	10.10%	10.70%	6.80%

Final Thoughts

Calgary’s property market is set to remain strong as increases are expected for the remainder of 2023. The average home price in Calgary is recovering quicker than in other areas around Canada. This comes after months of record consecutive price rises during the pandemic and one of the most intense periods of price appreciation last year. 

While the property market appears to be recovering value in Calgary, it’s important to remember that small volatility should be expected over the long term. It’s always a good time to buy a property if you’re a qualified buyer. Over the long term, expect property values to keep surging as immigration brings more buyers to the Canadian market.

If you are looking for a home in 2023, expect an imminent turnaround in the housing market over the next few months. Contact our knowledgeable and commission-free mortgage experts at nesto to help guide you through the home-buying process.

---