Condos lead Calgary home sales

December 7, 2022



Calgary housing sales slowed to 1,648 units in November 2022—a 22 per cent year-over-year decline but 12 per cent above the 10-year average, according to the Calgary Real Estate Board (CREB).
The downturn in sales over the past six months was not enough to erase gains from earlier in the year as year-to-date sales remain nearly 10 per cent above the 2021 record high. Year-to-date sales growth has been driven by a surge in both apartment condo and row sales.
“Easing sales have been driven mostly by declines in the detached sector of the market,” said CREB chief economist Ann-Marie Lurie. “Higher lending rates are impacting purchasers’ buying power and limited supply choice in the lower price ranges of the detached market is likely causing many purchasers to place buying decisions on hold.”
A pullback in new listings meant inventories fell to the lowest level reported in November since 2005. The tightest conditions are occurring in the lower-price ranges as supply growth has mostly been driven by gains in the upper-end of the market.
Despite the lower supply levels, prices have trended down from the peak reached in May 2022. Even with existing, November benchmark prices continued to remain nearly 9 per cent higher than levels reported in 2021.
Apartment condo sales continued to rise, and inventories fell to the lowest November levels since 2013. This caused further tightening in market conditions as the sales-to-new-listings ratio pushed above 100 per cent. Supply is projected to drop to two months if sales continue at the current pace.
In November, condo prices remained relatively stable at an average of $277,000 compared to October 2022. While prices have reported a year-over-year gain of nearly 10 per cent, prices are still below their previous highs set back in 2014 prior to a crash in the price of oil.