Mortgage Basics

Your Definitive Guide to the Calgary Housing Market in 2023

Your Definitive Guide to the Calgary Housing Market in 2023


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
Data and figures were collected from the Calgary Real Estate Board (CREB) and the Canadian Real Estate Board (CREA).

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
Data and figures were collected from the Calgary Real Estate Board (CREB) and the Canadian Real Estate Board (CREA).

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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%
Data gathered from the source: National Rents Report published by Urbanation Inc. network.

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
Data gathered from the source: National Rents Report published by Urbanation Inc. network.

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%
Data gathered from the source: National Rents Report published by Urbanation Inc. network

Is the Calgary housing market going to crash in 2023?

Calgary home prices are currently sagging a bit compared to last year’s surge in the housing market nationally due to the Bank of Canada’s rate hikes. Calgary prices remain below average compared to the rest of the country, and with the current Bank of Canada rate hikes, mortgages have been harder to qualify for due to the stress test. Calgary prices will recover quicker than in other areas once mortgage rates decline back to manageable levels for homebuyers to purchase or homeowners to refinance their homes.

Will Calgary housing prices increase in 2023?

Although slightly increased already, many experts believe a bigger turnaround is imminent.  Buyers are waiting on the sidelines for the opportune time to make a move. The market has already started to get past balanced territory.

How do I get approved for a mortgage in Calgary?

To get approved for a mortgage in Calgary, look at Calgary mortgage rates and see how much you can afford. This will give you an idea of what it will cost to buy a home in Calgary at today’s prices and rates. You can check out what you need to get pre-approved for a mortgage or start by getting a quote.

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.

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