When 2022 began, home buyers could obtain a 5 year fixed mortgage in the range of 2.0% to 3.0%. As the year comes to a close, mortgage rates have more than doubled. With the Bank of Canada continuing to sharply increase the benchmark rate with another 50 basis points on December 7, property owners will face higher mortgage payments for the foreseeable future. Not surprisingly, huge the volume of housing sales in the first quarter of 2022, has diminished as the fourth quarter closes out. Nonetheless, the number of properties sold in Calgary for 2022 has set new records.
In November, there was a 22% drop in sales, but this is 12% above long term averages and 10% above the record high mark set in 2021. The benchmark price for a detached home is $619,700, falling just under 5% from the peak in May. The benchmark price of apartment condos is up 10% to $277,000 over last year, remaining off the high point set in 2014. A decline in sales for November was also met with a drop in listing supply. At 3109 listings, this is the lowest inventory since November 2005.
Unlike Toronto and Vancouver, the future for housing sales in Calgary for 2023 is more optimistic. Low listing inventory, strong migration, low unemployment and strong economic development, Calgary has forward momentum going into January.
A record breaking year for Calgary Home Sales
