In June, sales hit 2,738, showing a 13% decrease from the previous year’s peak. While there was an increase in sales for Calgary properties priced over $700,000, it did not compensate for the drop in lower-priced properties. Even with the decline in June sales, they are still more than 17% above historical averages- indicating continued strong demand in the market.
The number of new listings decreased compared to sales, resulting in the sales-to-new listings ratio staying high at 72 percent. Inventory levels have shown improvement compared to the low levels of the previous year, mainly driven by increases in higher price brackets.
CREB Housing Market Insights
The Calgary real estate market remains highly competitive, potential buyers continue to face limited choices, particularly in the more affordable housing segments. This is resulting in many homes selling over the list price.
“Inventory in the lower price ranges of each property type continue to fall, providing limited choices for potential purchasers looking for more affordable product. It also continues to be a competitive market for some buyers with over 40 percent of the homes sold selling over list price.”
Ann-Marie Lurie, Chief Economist at CREB."
Supply Challenges
The number of new listings has not kept pace with the demand, leading to a competitive market environment. Sellers are hesitant to list their properties, partly due to uncertainties about finding a new home in the current market.
This reluctance exacerbates the supply-demand imbalance, further driving up prices. As we move forward, the market is expected to remain favourable for sellers, with continued demand and limited supply pushing calgary home prices higher.
Rising Prices in the Calgary Market
As per the Calgary Real Estate Board’s data, the benchmark price for a residential home in Calgary rose by 10% year-over-year. This upward trajectory in prices is making it increasingly difficult for first-time homebuyers to enter the market, thereby affecting overall sales volume.
Sales Performance by Property Type
Detached Homes
Sales for detached homes decreased by 16% year-over-year, with a significant pullback in homes priced below $700,000. However, the benchmark price for detached homes rose to $767,600, a 12% increase from last year, driven by tight supply and high demand in the upper price ranges.
Semi-Detached Homes
Sales dropped by 2% year-over-year, but the benchmark price increased to $686,100, up 12% from last year. This property type saw a sales-to-new-listings ratio of 76%, indicating continued demand pressure.
Row Homes
Sales for row homes declined by 17% year-over-year, yet the benchmark price surged to $464,600, a 17% increase from last year. With a sales-to-new-listings ratio of 75%, row homes continue to experience strong demand, especially in the most affordable areas.
Apartments
Apartment sales fell by 8% compared to last year, primarily due to limited supply in lower-priced units. Despite this, the benchmark price rose to $344,700, up 17% from last year. The year-to-date sales for apartments remain at record-high levels, with a 13% increase compared to the same period last year.
Calgary Property Prices 2024
In June, the unadjusted benchmark price rose to $608,000, nearly 9% higher than last year. Prices increased across all districts, with the most significant year-over-year gains in the North East and East districts.
• North: $580,800
• North East: $529,600
• North West: $664,300
• West: $739,600
• City Centre: $614,400
• East: $445,100
• South: $596,100
• South East: $597,200
Inventory and Supply Dynamics
The market continues to face supply hurdles, particularly in the lower price ranges, regardless of property type. Inventory levels improved slightly but remain 40% below long-term trends. The months of supply increased to 1.4 months, still favouring sellers and contributing to upward pressure on house prices.
Impact on Buyers and Sellers
Buying a house in Calgary
The current market conditions present potential challenges for buyers. With limited options and high competition, prospective homeowners may find it difficult to secure a property within their budget. Buyers need to be prepared for bidding wars and should have their finances in order to act swiftly when opportunities arise.
Selling a house in Calgary
High demand and limited supply mean that sellers can command higher prices for their properties. However, they should be mindful of the challenges they may face when looking to purchase a new home.
Creb Report July 2024
The CREB report remains cautiously optimistic about the future of the Calgary real estate market. While the current challenges are significant, they believe that increased construction activity and policy interventions could help alleviate some of the limited supply choices. They recommend that potential buyers stay informed about market trends and seek professional advice from a trusted Calgary realtor to navigate the volatility of the current housing market.
Established Calgary Realtors
Staying informed and seeking expert advice are essential strategies for navigating these turbulent times. As the market evolves, continuous monitoring and adaptability will be key to finding the right realtor in Calgary to help with informed decisions, smart buys, and strong sales.
Future Real Estate Opportunities
The current market conditions present potential challenges for buyers. With limited options and high competition, prospective homeowners may find it difficult to secure a property within their budget. Buyers need to be prepared for bidding wars and should have their finances in order to act swiftly when opportunities arise.