Amid lower interest rates and exceptionally tight conditions, record home prices and sales were set in Calgary region in the first half of 2022. Now that interest rates are higher and conditions not as tight, what can homebuyers expect this spring season?
We wanted to learn how current down payment minimums in the Calgary region compare to those of last year when the market was especially hot. For this study, Zoocasa calculated the difference in the required down payment a buyer would need to purchase a benchmark-priced detached house in 8 regions across Calgary in March 2023 vs. the same time frame in 2022.
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Benchmark home prices were sourced from the Calgary Real Estate Board. Minimum down payment amounts were calculated based on 5% of the purchase price for homes valued at $500,000 and under, 10% for the portions of home prices between $500,001 – $999,999, and 20% for homes priced at $1 million and over.
Check out the infographic below to see how minimum down payment amounts have changed for benchmark detached houses between March 2022 – 2023.
Home Buyers Require Larger Down Payments in All but One Calgary Region This Year
Thanks to interprovincial migration, demand is high and this is continuing to push prices upwards in most of the Calgary region. Chestermere experienced the largest price increase, with the price of a detached home jumping from $653,800 in March 2022 to $724,900 in March 2023. That resulted in a $12,110 increase in the minimum down payment required on a benchmark-priced home, now at $52,490. The minimum down payment required in Okotoks has also gone up considerably, with the minimum down payment now at $37,520, a year-over-year increase of 19%.
Canmore stood out as being the only Calgary region on our list to have experienced a downward shift in prices; a home in March 2023 cost $1,309,00, down 6.5% from last March. Though the minimum required down payment on a Canmore home is still hefty at $261,800, it’s decreased by $18,040 from last year.
Despite Price Increases, Calgary is Still One of the More Affordable Markets in Canada
Compared with Canada’s national average home price of $662,437 in February 2023, 6 out of 8 Calgary regions are far below that number. Despite this, Calgary was one of the only markets in Canada to have experienced positive year-over-year changes in home prices in February 2023.
Strathmore is the most affordable of the Calgary regions we analyzed, with a benchmark home price of $450,900 and a minimum down payment of $22,545, more than 11 times smaller than Canmore’s minimum required down payment. Cochrane is another affordable option as its prices have remained steady throughout the last year, with home prices increasing by just 0.2% and the minimum required down payment up by only $130.
Interested in learning more about home prices in the Calgary region? Give us a call today to speak to a real estate agent in your area.
