The city of Calgary, snugly located in the heart of Alberta in Canada, has emerged as a beacon of stability and affordability in Real Estate Canada. In a country where housing bubbles and skyrocketing prices have become all too familiar, Calgary stands tall due to prudent market practices, economic diversification, and a commitment to maintaining a sustainable housing market.
As we look at the housing market reports over the last two months, we discover the unique factors that have allowed Calgary’s real estate to buck the trend, offering a promising outlook for both buyers and investors.
While many parts of Canada have grappled with the aftermath of pandemic-induced housing bubbles, Calgary and Alberta, as a whole, have avoided such pitfalls. Even at its peak, the housing market in Calgary and Alberta has retained its affordability, which can be due to a combination of factors that set it apart from other regions.
One of the key hallmarks of the Calgary real estate market is its measured growth trajectory. Over nearly a decade, from January 2015 to June 2023, the benchmark price for houses for sale in Calgary witnessed a 23% increase.
This translates to a cumulative annual growth rate (CAGR) of approximately 2.8%, signalling that the market’s downward risk is relatively limited and painting a growth trajectory of stability and sustainability.
At the heart of Calgary’s resilience lies Alberta’s robust economic climate, characterized by greater financial freedom and abundant natural resources. These factors have culminated in some of the highest income and wage levels among Canadian provinces, with Calgary particularly shining as an economically sound city. The city’s reputation as a hub of economic activity is bolstered by its presence in diverse industries, including oil and gas, agriculture, manufacturing, technology, and finance.
A robust job market and accessible housing options are the driving forces of Calgary’s real estate market. The city’s flourishing economy, diversified industries, and higher wages have attracted interprovincial migration, offering a favourable push for Calgary Real Estate.
Calgary’s alias as the “Energy Capital of Canada” is not just a title but a reflection of its significant presence in the oil and gas industry. While fluctuations in oil prices can impact the city’s economy and housing market, Calgary’s diversified economic landscape serves as a buffer against undue volatility.
In June 2023, Calgary’s housing market showcased its strength with an average home price of $552,273. Notable growth was evident across property types:
- Detached homes surged by 9.4% year-over-year to an average of $730,299.
- Semi-detached houses saw a substantial 16% yearly increase, reaching $627,790.
- Townhouses appreciated by 16% since June 2022, at $409,013.
- Apartments exhibited a 7.9% annual rise, with a monthly dip of 1.8%, averaging $301,926.
In July 2023, the average home price climbed to $539,461, a remarkable 10% jump from the prior year. The benchmark price also rose nearly 6%, settling at $567,700.
Calgary’s real estate market has evaded the excessive speculation and unsustainable growth trends that have plagued some other regions. The city’s housing market has diligently avoided the trappings of a housing bubble, contributing to an environment far more affordable than the housing markets of Ontario and British Columbia. This affordability also extends to the local level, as Calgary’s housing market emerges as an attractive alternative to higher-priced markets such as Toronto and Vancouver.
Calgary – Model of Stability and Growth in Canada
As underlined by the June 2023 report and July 2023 update, Calgary’s real estate market defies the country’s housing bubble trends. With a focus on prudent practices and economic resilience, Calgary maintains a sustainable and affordable market.
Bolstered by a diversified economy, higher wages, and interprovincial migration, the city is a beacon of stability in the unpredictable real estate Canada landscape.
For those seeking affordable houses on the best real estate websites in Canada, Calgary’s success story offers balanced growth and enduring prosperity.