Canada's housing market cooling, but maybe not so much in Calgary

Recent data says Canada's housing market is cooling from a peak earlier this year with declines expected through the rest of the year, but some experts say Calgary will be shielded from extreme price decreases.

According to a TD Economics report, average home prices declined between February and July by more than five per cent in Alberta, more than 10 per cent in B.C. and about 15 per cent in Ontario.

The report predicts Canadian house prices will further sink by almost 25 per cent off peak prices by early 2023.

However, the report says Alberta's "sales levels are still quite healthy and markets are comparatively tight, so conditions look solid compared to B.C. and Ontario."

Local brokers say real estate in Calgary experienced a surge in early spring, and demand has come down.

"It's definitely settled. We don't have the frenetic pace. We don't have the multiple offers," said Karen Fawcett, a Calgary real estate agent.

"Calgary's never achieved the big bubble (that) occurred in Toronto and Vancouver. We've remained relatively stable."

Terry Weed is looking to downsize from his Auburn Bay home, in search of a smaller attached dwelling in Calgary's inner city.

He says prices in Auburn Bay haven't come down since he began house-hunting, and he can hold off listing his property until he finds what he's looking for.

"We've maybe missed the spike in the market. It doesn't appear that it's dropped a ton in our area," he said.

Derek Cook listed his investment property in southwest Calgary in February, but decided to sell it months later for about 10 per cent less than the initial asking price.

"We didn't get quite the price we were hoping for in a hot market, but we were fortunate to sell at a reasonable price in July," said Cook.

The Canadian Real Estate Association says home sale transactions across Canada have declined five per cent between June and July, but 29 per cent compared with the same month in 2021.

Although Fawcett says the market has shifted to benefit buyers as houses sit on the market for longer periods during the peak, Calgary homes are not closing with deep discounts.