Calgary Real Estate Market Update - February 2023

FEBRUARY HOUSING MARKET UPDATE

Lowest February inventory since 2006

Sales, new listings, and inventory levels all trended up compared to last month, in line with expected seasonal activity. With only a modest increase over the previous month, inventory levels were among the lowest for February since 2006 with 1,740 sales and 2,389 new listings.

“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 and it 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.”

Compared to the record-breaking month of previous year, both sales and new listings decreased. Throughout the 2015 to 2020 period, sales activity remained higher than long-term trends and levels recorded, although new listings were lower than long-term trends.

With a sales-to-new-listings ratio of 73% and a months’ supply of less than two months, the market has found it difficult to reach a balanced state, pushing house prices even higher. Over January levels and prices from a year ago, the unadjusted benchmark price rose by almost 2%.


Detached
Significant year-over-year drops from the record high of previous year were reported for both sales and new listings. Although inventories increased over the past two months due to the seasonal monthly gain, levels are still among the lowest recorded in February, and the months of supply decreased below two months.

The unadjusted benchmark prices did increase over last month’s levels due to further tightening conditions, but at $635,900, they remain below the peak recorded in May 2022. For properties under $700,000, the balance between supply and demand is still difficult to achieve, but conditions are beginning to stabilise for homes beyond that price.

Semi Detached
Despite the seasonal monthly uptick, both sales and new listings decreased from the record high set last year, just like the detached sector. Inventories are still among the lowest levels recorded for February, despite beginning to grow above levels seen in recent months. Although it is slightly greater than the extremely low levels from last year, the months of supply in February fell below two months due to the relatively low inventory levels, favouring the seller.

The unadjusted benchmark price increased by over 2% from the previous month and by 3% from February of last year, reaching $568,100 in February. The benchmark price saw a monthly unadjusted rise as a result of the market remaining tight. Nonetheless, prices for detached homes continue to be below May 2022 levels.

Row
With only one month’s supply and an 87 percent sales-to-new listings ratio in February, conditions were extremely tight. Row sales have decreased from record highs, but they are still pretty solid for February as consumers turn to the more reasonably priced products available.

Conditions that remained tight put more upward pressure on prices. The unadjusted benchmark price increased by almost two percent monthly and nine percent annually to $369,700 in February. In contrast to the other industries, prices have increased this month.

Apartment Condominium
Due in part to the quantity of new listings hitting the market, apartment condominium sales did not fall at the same rate as other property types in February. The months of supply once again fell below two months in February as a result of persistently high sales compared to listings, which has kept February inventory levels relatively low compared to levels witnessed over the previous eight years.

Price pressure was increased as a result of the competitive market. The benchmark price for unadjusted apartments rose to $286,000 in February, over 11% more than in February of last year and up roughly 3% from the previous month. While being nearly 7% below the peak levels recorded in 2014, prices are still higher than the levels reported last year.

Regional Market Facts

Airdrie
With only 178 units available for the month, inventories improved more in February, but they are still significantly below longer-term norms, keeping the months’ supply below two months.

The unadjusted benchmark price increased from the previous month in February, bringing it close to levels from this time last year. Prices are still below the peak price of $510,700, which was reported in April 2022, with a benchmark price of $487,200.

Cochrane
Inventory levels have increased in Cochrane as well, similar to Airdrie. Even if February inventory levels are twice what they were in the previous year, they are still more than 40% below monthly long-term trends. Nonetheless, this year’s sales and new listings have both slowed down, which has assisted in the market’s transition to more balanced conditions.

The benchmark price for February did rise in comparison to both last month’s and last year’s levels. Nonetheless, values are still below the $522,600 peak attained in June 2022 with an unadjusted price of $492,900.

Okotoks
With a sales-to-new listings ratio of 90%, circumstances remained extremely tight even though both sales and new listings have declined from last year. Inventory levels also dropped when compared to both last month and last year, and they are now very close to the record low levels set in February 2006.

It is hardly surprising that property prices are still under pressure to climb given the continued seller’s market. The unadjusted benchmark price increased by 3% from January’s and February of last year to $555,000 in February. Prices, like in other places, are still slightly below the $560,700 peak from May.