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May Sales Reach A Record High in Calgary

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Calgary's real estate market continues to outperform the rest of the country as indicted by the Teranet National Bank House Price Index in May showing a year-over-year drop across Canada (Y/Y Calgary: +8.34%, Y/Y National Index: -7.63%)

Source: Teranet

Sales for the month also rose to a record high in Calgary as indicated by the Calgary Real Estate Board (CREB) – 3,120 transactions occured in May 2023.

What are the driving forces behind the momentum in prices?

  • Record levels of migration last year from both international and inter-provincial has lead to enormous demand with limited supply
  • A strong job market largely as the result of a stabilizing and improving energy sector continues to lead to high paying professional jobs

How are buyers making sense of the high interest rate environment?

  • It really depends on where the buyers are coming from. Relative affordability in Calgary has offset the higher interest rates particularly for inter-provincial migrants coming from a higher cost of living area such as BC and ON.

Any possibility of momentum continuing?

  • It all comes down to supply. Without seeing the supply landscape change, we'll continue seeing price, momentum to the upside. The rental market continues to benefit from a lack of supply and continued demand growth. 

Movement within Calgary happening?

  • No doubt it has been a challenge to move up in Calgary. The restricted level of new listings is contributing to the supply crunch. However, the apartment and condominium sector has seen some improvement with some more supply choice recently. There continues to be at least a 50% decline in current active listings relative to last year.

How will this play out if Canada were to hit a recession?

  • It really depends on the segment of the market a recession would impact. The energy sector represents the key economic driver for the province, and with sector improvement as we've seen since 2020 with continued job growth, Alberta may not be as accutely impacted by a nation-wide recession.

Source: Ann-Marie Lurie, Chief Economist, CREB

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.