Calgary Real Estate Market Update - 2022 Forecast

After Breaking Records in 2021 the Housing Market in Calgary is Likely to Continue Strong in 2022

Compared to record-breaking sales in 2021, the forecast for Calgary’s housing market in 2022 is moderate. However, sales are expected to continue stronger than we’ve seen historically.

Ann-Marie Lurie, CREB® Chief Economist says, “Despite challenges with COVID-19, we are starting to see a turnaround in our job and migration numbers, and while interest rates are expected to rise, they remain relatively low. All these factors are expected to support strong housing demand into 2022.”

“The biggest question will be whether supply can meet that demand. It will take time for housing to move out of sellers’ market conditions, so we do anticipate prices will continue to rise this year.” 

Rising interest rates will undoubtedly dampen the demand somewhat, but not until late in the year. Since rates are still extremely low, this alone should lead to strong sales, especially from buyers who enjoyed increased savings plus equity gains during the pandemic. Economic growth is also likely to support population and job growth, both of which add to the demand for housing.

Throughout the COVID-19 pandemic, industries worldwide have been struggling with supply issues, and real estate is no exception. There has been an uptick in new listings, but not enough to keep up with sales. This means inventories are still low, which will negatively impact sales growth in Calgary’s housing market.

As 2022 progresses, new listings should continue relatively strong in the residential resale market due to higher prices. There was a surge in new home starts in 2021, so when those homes are completed they will add to the supply in those markets, giving buyers more choice.

We expect supply levels to increase this year relative to demand. But conditions are likely to continue relatively tight from now through spring, which will support additional price gains.

As the market becomes more balanced, the pressure for higher prices in housing is expected to ease. Lurie said, “While conditions in the housing market are expected to remain strong, there is a significant amount of uncertainty that could impact housing.”

““If supply levels remain low relative to demand, we could see stronger-than-expected price growth. On the other hand, if rates rise much faster and higher than expected, it could cause a more significant pullback in sales.”