Top Real Estate Agents in Calgary

October showed a clear divergence in the recovery of Calgary's real estate market: prices of detached homes continued their slow march upwards but prices of all other property types fell compared to September. The average sold prices of detached homes reached $554,985, a 5% increase compared to 2019. In comparison, prices of condo apartments fell to $241,637, a 19% drop from 2019. Despite the weak market, sales volume has remained positive with 1,764 properties sold in the month of October, a 22% increase yoy.

The pricing trends reflect the decreasing availability of detached homes and the massive oversupply of apartments in Calgary. Detached home inventory continued to fall with a 22% decline yoy while supply of condo apartments rose by 9%. Reaching almost 7 months of inventory, Calgary's condo market is likely to continue its slow decline as new listings outweigh sales by more than double.

Multiple forces at currently at play in Calgary's real estate market. The Western Canadian Select oil price index remains near the cost of production at $30 to $35 CAD since historical lows in March and April, leaving the likelihood of further fossil fuel-based economic expansion in the province unlikely. Many major employers in Alberta's natural resource-driven economy have announced major layoffs, further suppressing home prices in Calgary. However, record-low mortgage rates and pent up demand have pushed real estate markets in other Canadian cities to new highs despite the uncertainty caused by COVID-19. Toronto housing priceshave increased by more than 10% year over year and continue to show signs of exuberance while even Vancouver's real estate market, which has stagnated in the past few years, has grown compared to 2019.

The real estate exuberance in other markets follows recent announcements by the Bank of Canada promising continued Quantitative Easing and low interest rates into 2021. In addition, Prime Minister Justin Trudeau and the Federal Government have announced the extension of the Canadian Emergency Wage Subsidy until the end of 2020. As a result, asset price inflation is likely to continue as money pours into the economy through both monetary and fiscal policy.

Calgary Housing Market Statistics for All Property Types in October 2020

Calgary Commission Structure

Real estate commissions are the fees that home sellers pay to the seller and buyer real estate agents for their services. In Calgary, the total commission rate is structured as 7% for the first $100,000 of a home’s sale price and 3% on the remaining balance. Seller agents usually get half or 50% of this total commission with buyer agents getting the other half. To calculate your real estate commission for Calgary, see our calculator below. For other cities in Alberta, please visit our Alberta real estate commission calculator page for more information.

Calgary Real Estate Tools for Buyers and Sellers