Calgary Housing Market Report
- Calgary home prices have been climbing for over two years and are now stabilizing near their all-time high.
- At 2,186, Calgary’s monthly home sales saw a 20% yearly decline.
- The average home price increased by 16.6% annually to $609,058.
- Detached home average price increased by 13.8% year-over-year to $805k.
- Semi-detached home average price increased by 12.8% year-over-year to $658k.
- Townhouse average price increased by 11.1% year-over-year to $465k.
- Condo apartment average price increased by 14.1% year-over-year to $354k.
- September 18, 2024 Update: Today’s Lowest mortgage rate in Calgary is 4.29% for 5-Year Fixed.
Calgary Housing Market Overview
Average Prices
The average home price in Calgary for August 2024 was $609,058. That is 17% higher than last August’s average sales price and 0.4% higher than the previous month's. Detached home average prices were $804,811, which shows 14% yearly growth and a 0.2% monthly increase. Semi-detached home average prices were $658,408 , exhibiting a 13% annual growth but a 4.5% monthly decline. The average townhouse price was $465,418, 11% higher than August 2023 and 1.1% lower than July 2024. Apartment average prices were $353,805, 14% higher than August 2023 and 3.6% higher than July 2024.
Average home prices do not show the true extent of price changes because of the substitution effect. When changes in home prices or mortgage rates reduce consumers' buying power, they shift their purchases to more affordable options. As a result, the average price can under-represent house price inflation. Moreover, luxury homes have an outsize effect on average prices, and fluctuations in the number of luxury home sales cause fluctuations in average prices.
There is a change in the property types that Calgary buyers are interested in. Over the past three years, the composition of home sales in the Calgary real estate market shifted toward condos and townhouses while shifting away from detached houses.
Sales Numbers and Benchmark Prices
The benchmark home price rose 6.3% year-over-year and declined 0.8% monthly to $601,800 in Calgary. In August 2024, 2,186 homes changed hands; this number has declined 20% compared with last August. 3,536 new listings in Calgary increased by 13% year over year (YoY).
The sales-to-new listings ratio (SNLR) is 62%, which is lower than last June and July’s 72% and 66%. This SNLR signals a seller's market moving towards a balanced market. Inventory increased 37% year over year to 4,487 units. Inventory stands at 2.1 months of home sales compared with 1.8, 1.4 and 1.1 over July, June and May. It is over 2 months for the first time in over 1.5 years.
Calgary home prices have fluctuated over the past 19 years, yet they have shown healthy appreciation with a Cumulative Annual Growth Rate (CAGR) of 5.5% from January 2005 until July 2024.
In August 2024,
- The benchmark price of a detached home in Calgary increased 9.5% year-over-year to $762,600 and 0.7% lower month-over-month.
- The sale of 1,026 detached homes shows a 14% year-over-year decrease. Currently, inventory stands at two months of detached home sales.
- Semi-detached benchmark home prices grew 9.6% year-over-year to $681,200, 1% lower than in July.
- Sales of semi-detached homes decreased by 13% YoY, reaching 172 units. Currently, inventory stands at two months of semi-detached home sales.
- Benchmark townhouse prices grew 12% YoY and decreased 0.5% MoM to $461,700 for August 2024.
- The number of row houses sold decreased 16% YoY to 384 units. Currently, inventory stands at 1.7 months of row home sales.
- Benchmark apartment prices are up 16% year-over-year and unchanged month-over-month to $346,500.
- The number of apartments sold decreased by 31% YoY to 604 units. Currently, inventory stands at 2.4 months of apartment home sales.
Median Prices
As another price indicator, we can also look at the median prices for Calgary houses, increasing by 14% yearly to $556,500. Calgary median home prices are 1.2% lower than in July 2024. Median house prices for detached houses reached $702,000, increasing by 9.4% compared with last August. Median prices for semi-detached houses reached $590,000, rising by 12% annually. Median prices for row houses and apartments reached $453,250 and $325,000, increasing by 9.2% and 14% annually.
Context
Homes in Calgary are much more affordable than homes in Toronto and Vancouver. At the same time, Calgary is slightly less affordable than Montreal's larger housing market. Yet, prices have risen 44% over the past four years, and affordability declined significantly in Calgary. This trend would make life for renters and future homeowners more difficult and reduce economic dynamism and productivity growth in the largest population center in Canada’s prairies. Fortunately, there are plans for relaxing zoning restrictions and allowing Calgary residents to build homes and live where they desire to develop and live. Implementing these plans is necessary to keep Calgary a desirable destination for Canadians looking to move and realize greater opportunities.
Supply and Demand
To understand the state of the Calgary real estate market, it is instructive to consider changes in the Calgary population and the number of housing starts.
Calgary Population Chart
As of the last estimate, Calgary’s population is 1,682,509, growing at a 3-year annualized rate of 3.3%.
As of the 2021 census, Calgary had 594,513 private dwellings, of which 563,440 (95%) were occupied by regular residents. The population in 2021 was 1,540,242. Thus, on average, 2.7 people lived in each private dwelling. At the 3 year annualized rate, The population is expected to grow by around 55,500 people each year, which translates into a requirement of around 20,600 new dwellings per year. New construction of an average of 15,500 houses per year is not keeping up with the increase in population.
Calgary Housing Starts Chart
Over the past five years, Calgary builders have started an average of 13,500 units per year. Looking at more recent data, they have started an average of 15,500 units per year over the past three years.
Macro Economics Trends
Over the past three years, interest rate expectations have been the main driver of the Canadian housing market. During 2022 and 2023, the Bank of Canada raised interest rates to subdue CPI inflation. Between February 2022 and January 2023, higher Canadian interest rates pushed up mortgage rates and reduced borrowing power, reducing bids from investors and speculators. As a result, average Vancouver home prices dropped by 13% from their February 2022 peak to their January 2023 trough.
In January 2023, the Bank of Canada (BoC) announced a pause in raising the Bank of Canada’s policy rate, and the market started to look forward to lower mortgage rates. A combination of expectations for lower interest rates with the seasonal effect of the spring resulted in a resurgent housing market over the first half of 2023. However, stubborn inflationary pressures forced the BoC to raise rates again during the summer of 2023, and home prices declined over the second half of 2023. Canadian home prices were on an upward trend between November 2023 and April 2024.
The Alberta real estate market avoided a pandemic bubble and remained relatively affordable. The home price in the Calgary region is 35% higher than ten years ago (compared with a 29% rise in CPI). Over the same period, Toronto and Montreal's home prices rose by 107% and 93%, respectively. This price rise means the cumulative annual growth rate (CAGR) over the past ten years has been 3% for Calgary. This reasonable growth suggests that the downside risk in the Calgary housing market is limited. However, one might argue that Calgary homes were overpriced in 2014.
Alberta, in general, and Calgary, in particular, enjoy more economic freedom (and arguably more natural resources) than many other parts of Canada. As a result, Alberta offers some of the highest incomes and wages among Canadian provinces, and Calgary offers some of the highest incomes and wages among Canadian cities.
Home Prices in Calgary
Calgary Housing Market Statistics for All Property Types in August 2024
Average Sold Price and MLS HPI Benchmark Price
Total Transactions and New Listings
Property Type Distribution
Market Overview for Detached Homes in August 2024
Average Sold Price
Transactions
Market Overview for Semi-Detached Homes in August 2024
Average Sold Price
Transactions
Market Overview for Townhouses in August 2024
Average Sold Price
Transactions
Market Overview for Condo Apartments in August 2024
Unlike other major metro areas in Canada, such as Toronto real estate or Vancouver real estate, as recently as two years ago condo apartments were a relatively small part of Calgary's real estate market. Two years ago, they made up close to one-seventh of total home sales and a much smaller proportion of sales volume in dollars due to their lower prices. Currently, they constitute close to one-third of homes sold in the Calgary real estate market.
Average Sold Price
Transactions
Calgary Region Breakdown by Region for August 2024
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Property types
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Property Classes
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
Housing Markets Across Canada
Data sourced from the Calgary Real Estate Board (CREB) and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.
- The trademarks MLS®, Multiple Listing Service®, and associated logos are owned by CREA and identify services provided by its members.