As 2022 closes out, the Calgary Real Estate Board (CREB) is reporting the city is on track to achieve another record year of sales. Even a marked decline of 22% in home sales for November was not enough to put numbers behind those posted in 2021. Sales numbers continue to top those of pre-COVID levels and there has been an overall increase of 10% over last year’s record high. That means that by the time 2023 rolls in, there should have been approximately 18,742 total home sales for the year.
Home sales by type in Calgary
Detached homes continue to be the most popular type of dwelling for buyers as people search for their forever home. On a year-to-date basis, sales have slowed for homes priced under $500,000 simply due to there being far fewer of them available on the market. A decline of 36% in inventory for lower-priced homes is limiting options for buyers, however higher-priced homes remain in good supply. Higher-priced sales are helping keep overall sales numbers robust.
At $648,500, the highest benchmark price for a detached home was registered in May. That benchmark price went down to $619,700 in November. Although prices have reduced throughout the year, they still remain 11% higher than at this time last year.
Semi-detached homes are seeing heavy competition, with a recent sales-to-new-listings ratio of 100% recorded. For every new listing, there was at least one available buyer. Year-to-date sales are also 37% higher than long-term averages. These tight conditions have caused detached home prices to stay stable at the high end, with a benchmark price recorded in November of $562,800, approximately 10% higher than 2021.
Home sales for row houses are also being impacted by fewer options coming on to the market. Sales-to-new-listings ratio remained high at 99% while inventory dropped to 383 units in November, the lowest it has been since 2013. But, even though the market is strong, prices have trended downwards, reaching $358,700 in November. That number is still 14% higher than November 2021, though, with the northeast, north, and southeast areas of the city seeing the most growth at 18% more sales.
Apartments/condominium home sales have bounced back from previous years. In November, inventory levels for apartments/condominiums were at their lowest since 2013. Average prices have remained relatively stable, however, at $277,000. That is nearly 10% more than last year, but still below highs set in 2014.
Home insurance protects you and your loved ones
Once you have purchased your new home, it’s time to protect it with home insurance. Remember, home insurance rates are determined by the cost it would take to rebuild your home and replace its contents should something disastrous happen, not on the market value of your home. When you purchase your coverage, you will be asked to decide between actual cash value coverage vs. replacement cost insurance, and your choice will make a difference in your premiums. Replacement cost insurance is more expensive, but it guarantees you will be reimbursed the amount it would take to replace a lost or damaged item. Actual cash value insurance is cheaper, but it also factors in depreciation. This means that if your old and ratty couch is damaged in a fire, you will only receive back a fraction of what it would cost to replace it new.
Other factors that play in to the cost of your home insurance include:
- The type of home and materials it was built with.
- The size of home.
- The condition of your roof.
- Whether or not your basement is finished.
- Additional structures on your property.
- The amount of crime in your neighbourhood.
- Your proximity to a fire hydrant.
- If you are in a flood zone.
- The type of plumbing, electrical, and heating systems you have.
- Whether or not you have a home security system.
There is no assurance like good insurance from Lane’s
If you signed up for home insurance some time ago – or even if you did so recently – and are unsure exactly what you’re covered for, give the experienced insurance brokers at Lane’s a call at our Calgary, Banff, Edmonton, or greater Alberta offices. We can help cross-compare your policy with those we have available through our numerous providers to ensure you are getting the absolute best coverage possible at the very best rates. Our experienced insurance brokers on staff know exactly what questions to ask to help make the process seamless and satisfying.
