If you’re looking to buy real estate in Calgary, you might notice things are getting pricier and unfortunately, it doesn’t seem like that’s going to stop any time soon.
According to the latest data from real estate company Royal LePage, house prices in Calgary increased by 3.9% in the fourth quarter of 2022, compared to the same time the previous year, taking the aggregate price for real estate in the city to $599,100.
For those looking for a single-family detached home, the median price increased 5.5% to $686,500, and for condos, the median price increased 4% to $233,700 over the quarter.
Why are house prices rising?
According to Corinne Lyall, broker and owner at Royal LePage Benchmark, the price increases for real estate in Calgary are down to “low supply and a lack of new listings.”
The increased cost of living and rising interest rates had dampened demand but there was still a steady flow of buyers, she added.
It also looks like Jason Kenney’s plan to encourage people looking to buy property to look at Alberta is working too.
“Demand from out-of-province buyers has been consistent, as those searching for affordability in a city where their dollar will stretch further and can afford them a larger property, continue to flock to the region,” Lyall added.
Calgary’s healthy job market and strong economy have also been a huge draw for young people across Canada.
Are house prices going to rise in 2023?
While demand for real estate in Calgary was a little bit slow towards the end of the year, Lyall doesn’t see that lasting for long with a “brisk spring market” ahead.
“Many sidelined buyers have grown tired of waiting… Once demand picks up, sellers will feel more confident to list their homes, bringing some much-needed inventory onto the market,” she added.
Those who are looking to buy later in the year will want to pay attention as it doesn’t look like real estate prices in Calgary are going to fall anytime soon.
In fact, Royal LePage has predicted that prices in the city will increase by 1.5% in the fourth quarter of 2023.
House prices are on the rise in Calgary and next year, buyers might need to fork out over $700,000 to buy a home in the city.
According to the latest forecast from real estate company Royal LePage, house prices are unlikely to fall in Calgary in 2023. In fact, they’re actually predicted to rise by 1.5% in the fourth quarter of 2023, compared with current prices.
Despite overall house prices expected to fall in Canada next year, the forecast suggests that the median price for a single-family detached property in Calgary could increase to around $701,142 by the end of 2023.
The price for the same kind of home in the city right now is $694,200.
Condo prices are also set to grow by 2.5%, to around $239,543, from $233,700.
“Unlike Canada’s major urban centres, which saw steep increases during the pandemic boom followed by rapid declines over the last six months, the Calgary market has experienced less drastic swings,” said Corinne Lyall, broker and owner, of Royal LePage Benchmark.
Instead, the city will see “moderate price growth” especially in properties favoured by those looking to get on the property ladder like condos, which will likely drive the growth.
Calgary is also set to see demand from buyers from other provinces, “particularly first-time buyers from Ontario,” who are looking for more affordable houses and condo options in the city.
However, a lack of inventory for single-family detached homes is going to be a challenge for buyers and put pressure on prices, Royal LePage added.
“There are many buyers hovering on the sidelines, waiting for the right product to hit the market,” said Lyall.
“I expect activity will remain strong throughout the winter, with a normal seasonal slowdown in December and January before picking back up in the spring.”