Despite an annual downward trend from peaks seen earlier in the year, December’s benchmark price of $518,800 is 8% higher than last year, and overall, prices are still over 12% higher than they were a year ago.
However, the Calgary Real Estate Board (CREB) reported that sales activity in December was down 30.6% year-over-year, while new listings decreased by 16.3%. Calgary‘s already reduced inventory levels fell to 2,214 units last month — the lowest recorded December level in more than ten years.
Nevertheless, Calgary’s real estate activity and prices have grown compared to pre-pandemic levels and are more significant than the city’s long-term patterns.
Tighter Circumstances Enabled Strong Prices After Several Years of Being Oversupplied
The 2022 housing market typically fared better than anticipated. The low ratio of supply levels to sales activity for lower-priced, detached properties continues to favour the seller. The December benchmark price was $619,600, only a 4% decline from the 2022 high reported in June.
Throughout Calgary, semi-detached homes experienced a similar trend brought on by further losses in sales this month. Although sales have decreased from last year’s record highs, they are still much higher than long-term trends and levels before the pandemic. Benchmark prices have experienced gains of 12% compared to 2021, and in the North district, prices for semi-detached homes are up by 18% year-over-year.
In Cochrane, the benchmark price rose to $504,067, roughly 17% compared to prices from the previous year. Price increases were most pronounced in the detached and semi-detached sectors, where prices increased by a combined 19%, setting a new price record for 2022.
Inflation Favours Rows and Condos
Although a significant drop in new listings negatively impacted sales throughout the final few months, the city’s yearly sales in 2022 totalled 29,672, setting a new record high. In addition to being a record year, sales of row homes were over two times higher than long-term averages, with a total of 5,153 trading hands.
Compared to other property types, apartment condominium sales maintain annual growth above levels from the prior year due to the need for reasonably priced goods and revived investor interest due to rising rental rates. Year-to-date sales increased by 50% to 6,221 units, a new high.
Inventory levels dropped to its lowest point since 2013 as of December. Due to this, sellers will continue to benefit from this market niche.
Despite a challenging year on a national level, real estate sales in Calgary are up, prices are still high, and demand is robust. Let us connect you to a local real estate agent! Download our free Buyer’s or Seller’s Guides if you’re considering a move in Calgary or the surrounding areas.
