As we crossed the finish line for 2023, Calgary real estate market stayed strong to the very end. There was a small dip in sales from the peak in the previous year but remained strong with 27,416 sales - way higher than pre-pandemic levels. The climbing interest rates pulled back housing demand but high migration rate from other provinces kept the market deep in sellers' market territory this year. We saw a big shift toward more affordable property types like townhomes and apartments. Throughout the year, supply consistently lagged behind demand so there was stronger than expected price growth. Supply levels were well-below long-term trends for our city for most of the year. On average, there was a 44% drop in inventory over the 10-year average. These tight market conditions contributed to the establishment of a new record high price for homes in the city. Total residential benchmark price for a home in Calgary went up more than 10% from the previous month, hitting a record of $570,100 in December. Although the average annual benchmark price growth slowed from 12% in 2022 to around 6% in 2023, the growth was still relatively strong, especially when compared to other markets across the country. We normally see some pullback in sales & new listings in the holiday month but buyers were still eager. Look at the sales-to-new listing ratios! 
DETACHED
The detached housing market experienced 20% decline in sales compared to the previous year. The most noticeable in lower-priced homes because of limited supply. This scarcity prompted consumers to explore alternative housing styles. Sales did improve for higher-priced homes above $700,000, but overall inventory remained at historically low levels, keeping the market very tight throughout the year. The low supply pushed detached home prices continued to rise, albeit at a slower pace than the previous year. The December benchmark price went up by almost 13% from last year, landing at $697,400. The most significant price gains were observed in the city's more affordable districts, indicating persistent demand in those areas despite the market's overall slowdown.
SEMI-DETACHED
Like the detached sector, there was a big pullback in sales in the first part of the year because of limited supply for buyers to choose from. Even though sales did pick up after May, overall sales were down by 10% compared to the previous year. The decline stemmed from very limited inventory of lower-priced homes. The scarcity of homes below $500,000 restricted sales growth. Tight market conditions kept pushing price growth throughout the year. This month saw a 12% gain from last December at $627,100. Price growth varied across regions, ranging from 6% in the City Center to over 16% in the East district.
ROWS & TOWNS
The townhome sector has been divided for most of the year. Even though sales levels were on the rise for higher-priced townhomes, buyers looking for properties under $400,000 faced with very few listings and kept the overall sales activity 11% behind last year. New listings did improve for the second half of 2023 but mostly in the higher price ranges. This month, the sales-to-new listings ratio hit a whopping high of 125%. Throughout the year, sellers had the advantage, resulting in a December benchmark price of $425,100, almost 20% higher than same time last year. Price improvements were notable across the city, ranging from 11% in the City Center, to over 20% in both the NE and East districts.
APARTMENTS
The shiny toy of 2023. The apartment sector was the only property type that saw an increase in sales, reaching a record high of 7,884 sales. This growth was facilitated by higher initial inventory levels and gains in new listings. However, market conditions tightened throughout the year, favouring sellers and pushing consistent price growth. The December S/NL ratio hit a tight 107%. Apartment condominium prices rebounded from their 2014 peak, surpassing previous highs and reaching a new record high of $321,400 this December. The benchmark price for 2023 increased by over 13% annually, marking a faster growth rate compared to the previous year, indicating a robust market performance for apartment-style properties throughout the year.
Source: creb.com
