Is buying a house in Calgary on your agenda this year? Before you start searching for a new home, you may want to do a little research on the real estate market in Calgary.
Further, you should also take some time to make sure that your finances are all in order so that you’re in a strong financial position to buy a home and take out a mortgage.
The question is, what’s the average price for a home in Calgary? How much can you expect to spend on a house in the city? What can you do to make sure you don’t spend any more than what your current finances can handle?
Key Points You Should Know About The Average House Price In Calgary
- The average house price in Calgary increased by 10.2% over the year.
- The average house price in Calgary is currently $557,500.
- The median house sales price in Calgary is $640,000, the median townhouse sales price is $407,000, and the median apartment unit sales price is $292,850.
- Factors that can affect average house prices include housing supply and demand, the economy, and mortgage interest rates.
What Is The Average House Price In Calgary?
The average price for a house in Calgary is currently $557,500. Home prices in the city increased by just 10.2% over the past 12 months.
Home prices have skyrocketed across Canada, including Alberta. Over the past year, prices in Alberta increased by 12.4%. Today, province-wide home prices are averaging $471,887.
It’s a different story nationwide. Canada saw home prices increase by 7.6%, with home prices currently averaging $659,395.
Median House Prices In Calgary
According to recent stats by CREA, the sale price for houses in Calgary has grown exponentially.
- Median house price – The median house sales price in Calgary sits at $640,000 (4th quarter of 2023). That’s a 12.3% increase from last year.
- Median townhouse price – The median townhouse sales price in Calgary sits at $407,000 (4th quarter of 2023). That’s an 18.7% increase from last year.
- Median apartment unit price – The median sale price for an apartment unit in Calgary sits at $292,850 (4th quarter of 2023). That’s a 17.8% increase from last year.
Comparing The Average House Price In Calgary To The Rest Of Alberta
| Home Prices 2024 | Year-Over-Year % Change | |
| Canada | $659,395 | 7.6% |
| Calgary* | $557,500 | 10.2% |
| Edmonton* | $370,100 | 2.9% |
| Lethbridge | $369,011 | 17.8% |
| Fort McMurray | $341,855 | 7.0% |
| Grand Prairie | $311,717 | 0.0% |
Source: CREA (Jan 2024)
What Can Affect The Average House Price In Calgary?
The average house price in Calgary fluctuates over time based on the temperature of the market, the economy, and mortgage interest rates, all of which impact demand for housing.
Housing Supply and Demand
Basic economics suggests that prices for commodities — including housing — can increase as the demand increases. So, the higher the demand for housing, the higher the house prices will be.
The Economy
A strong economy is usually characterized by low unemployment and higher wages. People who have more money to spend may be in a better position to buy a home, which can drive demand for real estate, and therefore push prices up.
Other external factors that can affect housing prices are the oil and natural gas industries. Their performance has had an impact on housing, particularly in Calgary and Edmonton.
Mortgage Interest Rates
Lower mortgage interest rates can also fuel demand, as they can make borrowing more affordable. The more consumers can afford a mortgage, the higher the demand will be for housing, which can further drive prices up.
Other Factors That Can Affect The Price Of A House In Calgary
Whether you’re looking for a home in Calgary or any other city in Alberta, the value of a home is affected by the same factors, including the following:
- Location
- Age and condition of the home
- Size of the home
- Size and type of lot
- Features and finishes
All these factors play a role in how much a home is valued at and what a qualified buyer may be willing to pay for it.
How Do Sellers Come Up With Listing Prices?
The goal for every seller is to sell their homes for the highest price possible. That said, it wouldn’t be prudent to just arbitrarily pick a listing price out of thin air. Instead, there’s some behind-the-scenes work that needs to be done to make sure a listing price is chosen that accurately reflects the current market.
Real estate agents who represent sellers will go through a certain process to establish an appropriate listing price. Most often, this involves pulling a list of comparables — or “comps” — to help narrow down a listing price.
This list includes homes that are very similar to the subject property, are located in the same area, and have recently sold. While it may be somewhat helpful to look at prices of current listings, sellers would get a much better picture of what homes actually sold for.
From this list of comps, realtors can then make adjustments to come up with an appropriate listing price. More specifically, they’ll compare the following features to the subject property:
- Type of dwelling
- Number of bedrooms and bathrooms
- Square footage
- Age of the home
- Condition of the home
- Layout
- Size of the lot
The closer the comparable homes are to the subject property, the better. This will make establishing a listing price easier.
Here’s a checklist of all the documents you’ll need to buy a house.
How To Determine How Much To Spend On A Home Purchase?
When buying a home, consider more than just your income. Set a price range to avoid wasting time on unaffordable properties and disappointment.
To determine exactly how much you should spend on a home purchase, consider the following.
Get Pre-Approved For A Mortgage
Before you start house hunting, speak with a mortgage specialist at your bank or a mortgage broker. They can help you assess your financial status and determine your budget, loan eligibility, and ultimately help you get pre-approved.
Getting pre-approved for a mortgage will require you to provide the lender with certain documentation, for example:
- Bank statements
- Proof of income (T4, tax returns, etc.)
- Other loan documents
From this information, the lender will be able to determine how much of a loan you could get approved for. You can then use this figure to narrow your focus on listings that match your budget.
Pre-Approval Doesn’t Guarantee Final Approval
It’s important to note, however, that a pre-approval does not guarantee final mortgage approval. If certain things change with your finances, you could be denied a mortgage. For example, if you change your job or take out another loan before you apply for final mortgage approval, you could find yourself denied a mortgage.
Further, pre-approvals do not last forever. They usually expire after 90 to 120 days. So, if it takes you longer than this to put in an offer on a home and request final mortgage approval, you may have to start the mortgage approval process all over again.
Calculate Your Current Debt
The amount of debt you have (car loans, credit cards, etc.) significantly impacts your ability to afford a mortgage. To determine how much you can allocate to mortgage payments, make a detailed list of all your income and monthly expenses to determine how much of your income you can use to pay a mortgage. Common monthly expenses often include the following:
- Rent
- Car loans
- Gas
- Car insurance
- Public transit
- Student loans
- Credit card bills
- Personal loans
- Groceries
- Entertainment
Add up all the expenses you incur every month and deduct the figure from your income to find out what you can realistically afford to spend on mortgage payments.
Understand The Costs Of Homeownership
A mortgage may be the most expensive part of owning a home in Calgary, but there are plenty of other costs associated with homeownership. It’s important to understand what these are and how much it will cost you to operate a home every month. That way, you’ll be better able to budget appropriately so you don’t find yourself in the red every month.
The following are some of the more common costs of homeownership:
- Property taxes
- Home insurance
- Utilities
- Maintenance
- Repairs
- Furnishings
Don’t forget about closing costs when buying a home.
Average Home Prices Across Canada
Should You Buy A House Or A Condo In Calgary?
When buying a house in Calgary, you have lots of options, including whether to buy a condo or a single-family home. There are pros and cons to both, so you should take some time to weigh each of them before deciding which type of dwelling to buy.
Top Reasons To Buy A Condo
Price
Condos are usually cheaper than single-family homes. Just don’t forget to consider monthly condo fees when you compare the cost of owning a house vs. a condo.
No Maintenance
Owning a condo promises maintenance-free living. Property management is responsible for maintaining and repairing all common areas outside of your unit, so you won’t have to shovel any driveways or cut the grass.
Central Locations
Condos are typically located in areas that are closer to things like office buildings, shopping, entertainment, etc. Typically, you can walk to all your amenities. Otherwise, public transit is often close by, making commuting easy without the need for a car.
Building Amenities
Condo buildings typically feature several on-site amenities, like gyms, pools, party rooms, and rooftop gardens.
Top Reasons To Buy A Home
More Space
Single-family homes are larger than condo units, giving you a lot more square footage to make use of.
Outdoor Space
Aside from a balcony, condos don’t offer much in the way of outdoor space. With a single-family home, however, you’ll have a yard to enjoy, no matter how large or small it may be.
More Freedom
There are typically rules to abide by when living in a condo that can impede your freedom to decorate or use your home as you wish. For instance, there may be rules about pets, balcony BBQs, and visitor parking. But with a single-family home, you’ll have the liberty to do as you please.
Final Thoughts
Calgary is a great place to live and plant roots. Plus, compared to other cities across Canada, it’s relatively affordable. That said, buying a home is still an expensive endeavour. Make sure you have a hold on your finances and do your homework on home prices in Calgary to ensure you make a sound purchasing decision.
FAQs about the Average House Price in Calgary
What is the average house price in Calgary?
How does the average house price in Calgary compare to other major cities in Canada?
What are some tips for buying a house in Calgary?
- Get pre-approved for a mortgage. This will give you a better idea of how much you can afford to spend.
- Do your research. Learn about different areas you might want to live in and compare the prices of homes in those neighbourhoods.
- Be prepared to negotiate. The asking price is not always the final price. Having a good understanding of the average price of homes in Calgary can help you put in a desirable offer.
