Calgary Is Calling: 2022 Real Estate Year in Review & 2023 Outlook

Calgary is experiencing a period of growth and prosperity, with a strong economy, ample job opportunities, high salaries, low taxes, affordable homes, diverse lifestyles, and stunning natural scenery. The city’s real estate market has had a record year, with residential sales exceeding the 10-year average by 12%. However, as the new year approaches, the primary focus in local real estate is the supply chain. Inventory levels have dropped to their lowest since 2005 due to reduced sales and new listings. The lower-priced properties have been hit the hardest, while the growth in supply has been driven by higher-priced homes.

The Pain Point

It is anticipated that the inventory levels will remain low during the first quarter of 2023, but there should be a steady increase in supply during the third quarter. The shortage of housing inventory plays a crucial role in the buying and selling of properties, especially for Calgary condos and townhouses that are currently available for purchase. As a result of fewer consumers actively seeking real estate, the market is expected to move at a different pace in 2023.

The Best Address in Canada

The Alberta is Calling Campaign has proven to be a success, with the province seeing exceptional international and interprovincial migration rates. In Q2 of 2022, net migration was 3,225% higher than the same period in 2021, and nearly 30% of those who migrated to the Energy Province came from other Canadian provinces, with Calgary and Edmonton being their preferred destinations, particularly those from Ontario and B.C.

Net interprovincial migration has remained positive for four consecutive quarters, and this trend is likely to continue throughout 2023. Demand for real estate will be driven by first-time buyers and people relocating to Calgary, providing excellent investment opportunities. As more Canadian newcomers move to Alberta during the year, there will be a steady increase in demand for housing.

More Home for Your Buck

Calgary stood out among other major urban areas for its affordable housing. The average residential sale price across January-October 2022 was $658,277, a 13% increase from $585,025 in the same period in 2021. Meanwhile, the average price for single-family homes in Calgary reached $656,239 by the end of November 2022.

A Balanced Market

In 2022, Calgary’s real estate market achieved balance, and in 2023, it is expected to shift towards becoming a seller’s market. As a result, first-time homebuyers will need to adjust their expectations and potentially consider more affordable options. The average age of first-time homebuyers is also expected to rise with the increase in mortgage rates. Condos will remain a popular choice for first-time homebuyers and investors, attracted by the relatively low cost of real estate and the possibility of a mortgage-free retirement.