Home value increases 10.7% in Calgary to close out 2023: report

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Calgary recorded the highest year-over-year price appreciation for housing among Canadian cities to close out the year in 2023, at 10.7%, according to data from Royal LePage.

The real estate franchiser’s most recent report, released on Monday, shows that Calgary was also the only major region across the country to post quarterly price gains in Q4 of 2023 at 1.5% over Q3.

The aggregate price increase equates to a $663,50 aggregate home price at the end of 2023.

In comparison, the City of Calgary assessed the value of a single residential home at roughly $610,000.

The Royal LePage National House Price Composite is compiled from proprietary property data nationally and regionally in 63 of the nation’s largest real estate markets.

Nationally, the aggregate price of a home decreased slightly by 1.7% quarterly.

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“Low inventory fuelled competitive market conditions, keeping home prices on an upward trajectory throughout the final months of the year,” Corinne Lyall, broker and owner of Royal LePage Benchmark, said in a statement.

“Sales volumes continue to trend above the region’s 10-year average, with October home sales being one of the best on record for the month.”

Lyall added that activity in the single-family detached segment has been softer than normal as of late, with reduced inventory and limited borrowing capacity driven by higher interest rates pushing some buyers into the more affordable condominium and townhome markets.

In the months ahead, Royal LePage predicts that inventory levels will rise as sellers get ready for the spring market.

But in the immediate to short term, things may not change.

“We don’t, however, expect demand to ease up anytime soon, as many buyers have yet to make their move,” said Lyall.

“If interest rates were to drop sometime in 2024, more sellers may consider listing their homes to take advantage of lower borrowing rates upon renewal, thereby boosting supply levels across the region.”

Calgary continues to experience a wave of interprovincial migration — something experts have attributed as a key driver for housing demand in this city.

In December, Royal LePage issued a forecast projecting that the aggregate price of a home in Calgary will increase 8% in the fourth quarter of 2024 in comparison to the same quarter in 2023.

Nationally, the company predicts aggregate home prices to rise 5.5% year over year in Q4 of 2024.

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