Calgary Real Estate in 2023: 1st Quarter Market Review
Are we at Buyer or Seller Market? What caused the market to be so active in the first quarter?
Let's take a look at the 1st Quarter 2023 Market Review.
To everyone's surprise, the sales price for all single-family homes, townhouses, and apartments are up from the end of December benchmark prices.
The single-family home Benchmark price at the end of 2022 was $619,600.
Due to the low inventory in Jan and February, the benchmark price has gone up to $649,800 in March, and it is higher than the peak market in May of 2022 ($648,500 at that time). Benchmark price has gone up 4.8% in 3 months' time.
For the Apartment, the Benchmark price has gone up 6.8% in the last 3 months and is at $293,500. This is the highest since the peak in 2015.
For Townhouses, the Benchmark price also has gone up 5.5% in the last 3 months, reaching at $378,100. This is the record high for Townhouses.
Both Townhouses and Apartments have recovered well in the last 12 months to reach this benchmark price that has declined since 2014/15.
What caused this uprising price when the interest rate is high at this time?
1. The influx of people moving to Calgary, from overseas, from other provinces because Calgary is very affordable for most people compared to B.C. and Ontario.
2. The high demand in the rental market attracts many investors to buy properties to invest.
3. The Government now amended the rule to allow people holding work visas to buy properties, which will increase the demand for housing too.
My forecast for the Spring and Summer market will be holding strong and the market will balance in June when more inventory is on the market.
If you have any questions about Calgary real estate, Call us at 403-241-9800 or email me at [email protected]!