Calgary’s spring market promises to be extremely active as historically low inventory can’t keep up with the continued strong demand, with realtors expecting bidding wars for properties.

According to the Calgary Real Estate Board, February ended with the lowest level of inventory for that month since 2006. And as of March 15, there were 3,034 active MLS listings in the city, down 25.31 per cent from a year ago.

Yet, demand is expected to rise with increasing immigration levels and interprovincial migration. In fact, Alberta has launched its second Alberta is Calling campaign to attract more skilled workers from across Ontario and Atlantic Canada.

Joel Semmens, a realtor with Re/Max Real Estate (Central) in Calgary, said the number of active listings in the Calgary market for the past three months has been remarkably low. 

“Sales volume is down a little bit, but inventory levels are really low, and I’m finding there’s still a big influx of people coming from other provinces, mainly Ontario, BC and Saskatchewan, for people coming for jobs,” said Semmens.

“I think we’re in for a very active market here this whole year… The start of this year has been extremely active, and I think that will continue throughout the spring market and into the summer.”

“If you’re looking for a single detached home, anything from $500,000 to $700,000, you’re pretty much going to be in a bidding war scenario…”

According to CREA, the benchmark price in Calgary in February was $521,400, half the price compared to the Greater Vancouver and Greater Toronto areas.

Though with a lack of inventory and continued strong demand, home prices are expected to rise.

“If you’re looking for a single detached home, anything from $500,000 to $700,000, you’re pretty much going to be in a bidding war scenario in order to get the property as a buyer,” said Semmens. “Without a doubt, it’s heavily a seller’s market in that segment.

“But I’m even finding it in most segments. In the ultra-high-end, you’re not in bidding war situations, but those properties are still moving readily as well. The unique thing I’m finding with our market… is the migration of people coming to our province is all age groups and all price levels.”

Low inventory could lead to upward pressure on prices

The Calgary market has been on, with record MLS sales in 2021 and 2022.

In the current market conditions, experts say potential buyers and their agents must move quickly in making an offer.

“Time is of the essence for sure because you’ve got a lineup of other buyers that will jump at the opportunity,” said Semmens. “I think conservatively, we’re going to see anywhere from a five to eight per cent appreciation in house values.”

Ann-Marie Lurie, chief economist with CREB, said if we do not see a shift in supply, the market could see further upward pressure on prices over the near term.

“The biggest challenge is seeing supply come onto the market. That’s the one thing we keep waiting to happen,” said Lurie. “But it doesn’t seem to be happening. It’s a bit early, but we’ll see what happens in the next month here.

Despite demand not being as high as last year, it is still relatively strong, and Lurie anticipates the situation will become clearer in March, April and May. 

The economist notes that while sales being down from record highs is not surprising, the lack of listings coming onto the market is a concern.

“There are multiple offers on pretty much every category, whether it’s condominium, townhouses or single-family homes.”

Catherine Chow, a realtor with CIR Realty in Calgary, described the current market as “crazy.”

“It’s been incredibly busy due to lack of inventory. There’s just not much on the market right now. So it’s a seller’s market. Buyers are often having to compete on properties and get out there as soon as something is listed,” she said. 

“There are multiple offers on pretty much every category, whether it’s condominium, townhouses or single-family homes. The increase in interest rates has affected some people and their purchasing power. So it’s driven more activity in the attached and condominium market.

“It’s a great time to sell right now. With the affordability in Calgary and recent job growth here, it’s driving a lot of people to come to Alberta.” 

“It seemed as soon as March came along, the faucets turned on, and people started coming out…”

Corinne Lyall, broker/owner of Royal LePage Benchmark in Calgary, is noticing the same challenges, lots of buyers but not enough inventory.

“It seemed as soon as March came along, the faucets turned on, and people started coming out, but the challenge still is we don’t have inventory,” said Lyall. “We’d have a really good market if we had stuff to sell buyers.

“It’s not as crazy as it was last year at this time where you were seeing people come in from Ontario and bid $100,000 over list (price). It’s not quite like that, but there are still people competing for the same property, and it’s still pushing prices up.”

With interest rates stabilizing, Lyall expects some confidence to return to the market, which could lead to more homes hitting the market. 

Homes are being listed every day, but it’s just not happening at the pace to meet the demand for the number of buyers out there, she added.

Mario Toneguzzi

Mario Toneguzzi is a contributing writer for REM. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He now works on his own as a freelance writer for several national publications and consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list.