Calgary housing market remained hot in Q2, expected to slow

A Calgary realtor outside a listing in the southwest Calgary community of Lakeview,

The Calgary Real Estate Board (CREB) says while home sales in the second quarter of the year were almost as strong as in the months prior, inventories are relatively low and supply is tight.

CREB released its latest quarterly update on Tuesday, in which the organization examined housing sales in April, May and June.

In it, CREB noted 9,303 total sales in the second quarter of 2022, an increase of 2.24 per cent over the same period last year.

However, new listings were down 3.25 per cent in the second quarter and inventory dropped by more than 20 per cent year over year.  

The result, says CREB, is prices that trended up; the benchmark price in Q2 jumped more than 14 per cent year over year to $544, 733.

"The lending rate increases have started to impact home sales and are expected to weigh on sales over the second half of the year, offsetting some of the strong gains reported over the first half of the year," CREB noted.

"With market conditions easing and a higher cost of borrowing, prices are expected to trend down in the second half of the year, offsetting some of the stronger than expected gains in the first half of the year . Despite the pullbacks, we anticipate that the annual benchmark price will remain higher than levels reported last year."

DETACHED AND SEMI-DETACHED SALES DECLINE

Not every home is benefiting from the hot housing market.

CREB recorded 4,949 sales of detached homes in the second quarter, a decline of more than 14 per cent year over year.

Meanwhile, 791 semi-detached homes were sold in Q2, a three per cent decline year over year. 

Row housing in Calgary saw an increase in sales of more than 36 per cent year over year, with 1,713 in Q2.

CREB recorded 1,850 apartment condominium sales in the second quarter, and increase of more than 46 per cent.

SURROUNDING AREAS

Serveral areas around Calgary saw a boost in housing sales.

Airdrie had a 3.74 per cent year over year increase in sales with 832 houses sold, High River had a 4.17 per cent year over year increase in sales with 125 houses sold and Okotoks had a 5.10 per cent year over year increase in sales with 309 houses sold.

Other areas saw housing sales drop.

Strathmore had a 0.73 per cent decline in sales with 136 houses sold, Chestermere had a 13.21 per cent decline in sales to 184 houses sold, and Cochrane had a 12.21 per cent decline in sales with 374 houses sold.

The decline in Strathmore has been contributed to low supply levels in houses, with conditions "continuing to favour the seller," while Cochrane had inventories that remained well below levels traditionally seen in the market.

For Chestermere, CREB was optimistic about their market, saying that "the move towards more balanced conditions is relieving some of the upward pressure in home prices which peaked in May of this year."

As for the jurisdictions that had positive growth, Airdrie’s increase in housing sales was contributed to higher inventory levels, while High River had it where a rise in new listings relative to sales supported some quarterly gains. Finally, the gain in houses sold in Okotoks was thanks to a "gain in new listings."