Calgary Real Estate Market Thrives as Newcomers Choose Alberta

The southern Alberta real estate market is hotter than ever Submitted

The southern Alberta real estate market is hotter than ever, with newcomers flocking here in search of their dream homes. Despite national trends indicating a decrease in real estate activity due to higher interest rates, Calgary stands out as Canada’s most vibrant housing market in 2023.

According to local real estate agent, the market took off around February and has maintained its momentum throughout the year. Homes are selling quickly, often on the very day they are listed, and often surpassing their asking prices. In some cases, sellers are accepting offers before scheduled viewings even begin, occasionally without the buyers having seen the property in person.

Bidding wars have become the norm, with listings receiving anywhere from four to an astounding 17 offers. Calgary recently set a record for home sales ilast month, with a remarkable 11% year-over-year increase. Apartment sales alone saw an eye-popping surge of 48%.

While the national real estate landscape has witnessed a decline in prices, Calgary is experiencing a different story. The average selling price of a home in Calgary last month rose nearly seven percent from the previous year, reaching $552,273, according to the Calgary Real Estate Board. AnnMarie Lurie, the board’s chief economist, expressed surprise at the market’s strength, particularly in the upper price ranges, despite interest rate increases.

One reason for Calgary’s outperformance compared to other Canadian cities is its potential for growth. Unlike Toronto and Vancouver, which have grappled with overheated housing markets, Calgary is emerging from a years-long slump that began with the 2015 oil price crash. It took eight years for prices in the condo and apartment market to recover to their 2014 levels. However, with the rebounding oil-and-gas-based economy, bolstered by higher commodity prices since the Ukraine invasion, Calgary is regaining its footing.

The province of Alberta, especially Calgary, has become an attractive destination for people across Canada and from other countries. Alberta witnessed the highest net interprovincial migration in the first three months of the year, with over 15,000 people relocating from other parts of the country, primarily from Ontario, British Columbia, and Saskatchewan. Additionally, Statistics Canada reports that around 100,000 individuals moved to Alberta from other countries.

The province’s strong job market, with a focus on professional services and higher-paid industries, acts as a magnet for job seekers and those who have been priced out of other Canadian markets. Calgary’s relative affordability compared to other major cities in the country makes it an appealing choice for homebuyers.

While the influx of newcomers is beneficial for the province’s economy and the Alberta government’s efforts to attract residents, it does present challenges for homebuyers. Competition is fierce, and properties are being snapped up quickly. As the Calgary real estate market continues to sizzle, it offers a promising landscape for both newcomers and current residents looking to make their mark in Alberta.