Calgary Housing Market Report
- Average sold prices dropped by 3% month-over-month but are still up by 7% year-over-year
- Inventory continued to increase for all property types
Calgary's real estate market showed a seasonal shift as prices and sales dropped in tandem. The average sold price of all property types was $494,111, down by 2% from last quarter by up by 7% year-over-year. Sales slowed their decline with only a 2% month-over-month drop and remained elevated compared to 2019 levels. Inventory continued to trend upwards as more homes entered the market relative to sales.
Home sale activity remained elevated with 2,915 homes sold, flat on the quarter and still relatively close to the peak of 3.2K sales reached in April. Detached homes accounted for 62% of all home sales; semi-detached homes accounted for 8% of all home sales; townhouses accounted for 14% of all home sales; and condo apartments accounted for 15% of all home sales. This market share distribution has remained relatively constant over the past year. Compared to last June, condos have taken market share from semi-detached properties by a few percentage points.
Average home prices across Calgary dipped by 3% from May but are still up by 7% year-over-year. Detached homes sold for $583,587 on average, down by 2% from May but up by 8% from last year. Semi-detached homes sold for $509,044 on average, flat month-over-month, down by 5% from April highs, but up by 18% year-over-year. Townhouses have defied the trend with a 5% month-over-month increase in prices to $343,802, a 12% increase year-over-year. In contrast, condo apartment prices are down by 11% month-over-month and down by 3% year-over-year to $257,438.
As a new regulatory tailwind to Calgary's housing market, the CMHC has recently decreased their standards for insured mortgages. This reverses the increase from last year and drops required credit scores from 680 to 600 and increases GDS and TDS ratio limits to 39% and 44% from 35% and 42%, respectively. This increases potential leverage for home buyers across Canada, especially in cities like Calgary where average home prices remain under $1 million.
However, the Office of the Superintendent of Financial Institutions (OSFI) and the Ministry of Finance have recently raised the benchmark mortgage stress test rate for both insured and uninsured borrowers from 4.79% to 5.25%, limiting affordability for marginal buyers.
Mortgage rates have also risen from their 2020 lows but have remained stable for the past few months. However, the prospect of tighter monetary policy from the Bank of Canada as early as mid-2022 could lead to increased rates and limit home affordability in Calgary.
Home Prices in Calgary
Calgary Housing Market Statistics for All Property Types in June 2021
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Property Type Distribution
Housing Markets Across Canada
Market Overview for Detached Homes in June 2021
Average Sold Price
Transactions
Market Overview for Semi-Detached Homes in June 2021
Average Sold Price
Transactions
Market Overview for Townhouses in June 2021
Average Sold Price
Transactions
Market Overview for Condo Apartments in June 2021
Unlike other major metro areas in Canada, such as Toronto real estate or Vancouver real estate, condo apartments are a relatively small part of Calgary's real estate market. They make up less than 20% of total home sales and an even smaller proportion of sales volume in dollars due to their lower prices.
Average Sold Price
Transactions
Calgary Region Breakdown by Region for June 2021
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Property types
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Property Classes
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Housing Markets Across Canada
Data sourced from the Calgary Real Estate Board (CREB) and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. 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.