Posted on
November 3, 2024
by
Mike Hickey
October brought notable shifts to Calgary’s real estate market, especially in higher-priced properties, as sales activity remained strong and well above historical averages. With inventory gradually increasing, particularly in the higher price ranges, Calgary's market is slowly moving toward more balanced conditions. However, lower-priced options remain tight, creating mixed dynamics across different property types and regions. Here's an in-depth look at the trends this month.
City-Wide Market Overview
The Calgary market continues to experience high demand, with 2,174 sales reported in October. Detached homes, semi-detached homes, row homes, and apartments all saw varied trends, reflecting the unique conditions in each segment. Prices remain steady or have grown across most property types, driven by strong demand and constrained inventory in the lower price ranges.
Detached Homes: A Shift Toward Balance in Higher Price Ranges
The detached home segment saw stable prices and a gradual improvement in inventory.
Sales & Inventory: Sales are healthy, especially for homes priced over $600,000. Inventory has grown enough to ease some of the extreme seller’s market conditions, although supply is still tight for lower-priced detached properties.
Pricing: The unadjusted benchmark price for detached homes stood at $753,900 in October, stable from the previous month and 8% higher year-over-year.
Market Conditions: This increase in inventory is especially notable in higher-priced homes, helping to shift the market toward balance in the $600,000+ range. Lower-priced detached homes remain competitive, illustrating a mixed market landscape within the detached home category.
Semi-Detached Homes: Consistent Demand and Gradual Supply Increases
The semi-detached home market continued to experience strong sales, with modest increases in inventory helping to meet demand.
Sales & Listings: October sales were up by 10% compared to last year, with new listings supporting these sales despite a sales-to-new-listings ratio of 69%. This has kept inventory near two months of supply.
Pricing: The unadjusted benchmark price for semi-detached homes was $677,000, steady from last month and 8% higher than last year.
Market Conditions: Supply levels have inched closer to balance, particularly for higher-priced semi-detached options, while affordable options remain competitive.
Row Homes: Steady Gains in a Seller's Market
Row homes are still experiencing seller-favorable conditions due to persistent demand and limited supply.
Sales & Listings: October sales increased compared to last year, contributing to a 3% year-to-date growth. Inventory has grown but is still below optimal levels, maintaining a months-of-supply ratio near two months.
Pricing: October’s unadjusted benchmark price for row homes was $456,600, slightly down month-over-month but 8% higher than last year.
Market Conditions: Higher-priced row homes have seen slight relief in inventory constraints, but conditions remain tight in lower-priced categories.
Apartment Condominiums: Demand Driven by Limited Low-Cost Options
The apartment condominium market has been impacted by rising rental prices and limited affordable alternatives.
Sales & Listings: October marked the fifth consecutive month of year-over-year sales declines, though demand remains high, especially in the $300,000 to $500,000 range, which saw increased listings.
Pricing: The unadjusted benchmark price for condos was $341,700 in October, an 11% increase from last year.
Market Conditions: Higher-priced condos have benefited from additional listings, but affordable condo options remain limited, continuing the tight market for lower-priced units.
Regional Market Highlights
While city-wide trends reveal a market leaning toward balance, regional differences also play a significant role. Let’s take a look at the trends in Airdrie, Cochrane, and Okotoks:
Airdrie
Sales & Listings: Sales and new listings improved from last October, with a sales-to-new-listings ratio reaching 67%. Inventory has risen significantly, from 213 units last year to 365 this October.
Pricing: The unadjusted benchmark price has stabilized, with a slight month-over-month dip but a 5% increase year-over-year. Seasonally adjusted data shows stability in the past four months, signaling a shift away from extreme seller conditions.
Cochrane
Sales & Listings: October sales surpassed last year’s levels, while new listings reached an October record. Inventory levels have risen slightly, yet remain below long-term trends with a months-of-supply ratio at 2.3.
Pricing: The unadjusted benchmark price was slightly down from last month but 6% higher year-over-year. Year-to-date, average prices are up over 9%, showing sustained growth in Cochrane’s market.
Okotoks
Sales & Listings: Sales grew from last year as inventory expanded, reaching 103 units compared to last October's 66. However, with less than two months of supply, Okotoks continues to favor sellers.
Pricing: Unadjusted prices saw a slight month-over-month dip in October but remain over 6% higher than last year and up by more than 8% year-to-date.
Final Thoughts
Calgary’s real estate market remains active, with higher-priced homes beginning to balance out while affordable options in all property types continue to see strong demand. Regional markets like Airdrie, Cochrane, and Okotoks are also showing varied trends, with inventory levels improving but still favoring sellers in many cases.
As Calgary’s housing landscape continues to evolve, buyers and sellers in higher price ranges are finding more options, while affordability remains a challenge at the lower end of the market. For those navigating this complex market, a strategic approach is essential. Whether you’re looking to buy or sell, understanding these market dynamics can help you make informed decisions and take advantage of the unique opportunities within Calgary and its surrounding areas.