moving to Calgary Alberta

Calgary Hot Spot for In Canada for Migration in 2023

The Calgary Real Estate market is expected to stabilize in 2023 after two years of record growth. Most importantly for potential homebuyers, a slight drop is also expected in home prices, according to the Calgary Real Estate Board.

“Our market is not as bad as what people might think it is,” said Ann-Marie Lurie, chief economist for CREB. “Although we’re going through a period of adjustment . . . we’re still performing relatively well.”  She said Calgary experienced a price adjustment following the 2014 oil price crash, which is cushioning it from the major corrections seen in other markets, such as Vancouver and Toronto.

Migration to Alberta (mainly from Ontario and B.C.) paired with high levels of immigration from other countries has also helped keep home prices up. An estimated 100,000 people came to Alberta last year, with nearly 40,000 settling in Calgary. The Conference Board of Canada indicates Calgary could see another 25,000 newcomers in 2023, which will bode well for the real estate market.

The Calgary housing market has been affected by interest rates that have risen since March to 4.50% as the Bank of Canada tries to tame inflation. Lurie said she expects the central bank to hold off on further increases to see how the market reacts but does not expect a dip in rates until at least 2024.

Calgary is appealing for many newcomers not only for it's family oriented quality of life but also due to a large gain in employment at 7.7%. The CREB is expecting employment growth to drop in 2023 as well, forecasting 1% growth with an economic slowdown on the horizon.

Low Supply Continues into 2023

Calgary continues to have low housing supply, with only 1.7 months’ worth of inventory. Lurie said this will continue to support prices at the lower end of the market, while values will continue to decline at the high end where more product exists.

Overall, the CREB expects the benchmark price for the city will fall just under 6% across the board to $526,263. Detached homes will see the biggest drop in price at 1.8 per cent, while townhouses and condo sales are expected to remain strong.

view in NW Calgary

The report notes record housing starts in Calgary in 2022 — the Canada Mortgage and Housing Corp. reported 17,306 — though many are being built as rental units. The construction sector has also been hit with several supply chain issues, pushing timelines on completion to 20 months.

The CREB report also says much of the new construction in the detached segment is geared toward higher-end homes and multi-unit housing will also see more supply, particularly in condos.

“There is that risk that it could take longer for that supply to actually come on, relative to what that demand is, but we do know that those higher rates will cool off some of that demand,” said Lurie. “Nothing that is in that market right now is pointing to too much supply coming on, even if it comes on in the delayed time frame, because migration is expected to remain strong.”

Posted by Kirby Cox on


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