Calgary Sees Strong Bidding Competition Despite Higher Rates

Northwest Calgary neighbourhoods see the stiffest bidding competition among homebuyers as the city’s housing market forges ahead despite headwinds.

By Josh Sherman | 2 minute read

While other major Canadian housing markets have been experiencing a chill, Calgary has been more competitive in terms of bidding activity.

Roughly half of Calgary’s neighbourhoods are in overbidding territory as the city’s real estate market remains hot despite higher interest rates, new analysis from digital real estate platform Wahi suggests.

In 49% of Calgary neighbourhoods (92), homes were mostly selling above list prices through the first four months of the year. Another 14% saw homes selling at-asking (27). The remaining 37% were in underbidding territory (70), according to Wahi’s inaugural Calgary Market Pulse report. “Whether it’s buyers from other provinces attracted by Calgary’s relative affordability or locals benefitting from Alberta’s resilient economy, demand remains strong for Calgary real estate,” says Wahi CEO Benjy Katchen.

The share of overbidding neighbourhoods was roughly the same regardless of property type. For example, looking only at condo sales, 49% of neighbourhoods were overbid, while for non-condos, the overbidding share was 51%.

Calgary’s real estate market is more competitive than other major Canadian real estate markets that Wahi tracks. For example, in April, 39% of Greater Toronto Area neighbourhoods were overbid, down from 43% in March. Meanwhile, just 2% of Ottawa neighbourhoods were overbid in the first quarter of the year.

Calgary’s Top 5 Overbidding Neighbourhoods 

The hottest bidding activity was recorded in Northwest Calgary, led by the neighbourhoods of Hawkwood and North Haven. However, two of the five top overbidding neighbourhoods were located in lower-priced pockets of Southeast Calgary: Deer Ridge ranked third and Deer Run placed fifth.

Relative affordability appears to be an overarching factor, as the median sale prices in the top overbidding neighbourhoods were all below $750,000 (the most underbid neighbourhoods tended to have higher price points).

Note that when a neighbourhood is in overbidding territory, it doesn’t necessarily mean that every home is selling above-asking. Instead, it’s a general reflection of overall market behaviour, which can be influenced by seasonal factors, for example, or decisions by sellers, such as to list homes below market value to try and attract more bids.

Calgary’s Top 5 Underbidding Neighbourhoods 

Compared to the top overbidding neighbourhoods, median sale prices in Calgary’s leading neighbourhoods for homes selling below-asking trended higher, with two neighbourhoods in excess of $1 million. “The strongest underbidding activity was concentrated in Southwest Calgary and in established neighbourhoods with premium price points,” says Katchen.

How Wahi Ranks Overbidding and Underbidding Neighbourhoods

Wahi compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory. 

The top overbidding and underbidding neighbourhoods are ranked by the median overbid or underbid amount. The median overbid and underbid amounts are calculated by subtracting the list price from the sold price of each individual listing in a given neighbourhood. These are then ranked by the median of all subtractions and presented as the median overbid or underbid amount. Wahi analyzed 204 neighbourhoods, excluding 15 with fewer than five sales over the study period.