With the busy spring market behind us, we are starting to see some shifts in supply levels in the Calgary real estate market. According to the latest CREB report, with 2,380 sales and 3,604 new listings, the sales-to-new listings ratio fell to 66 per cent, supporting a gain in inventory.
Inventories rose to 4,158 units, still 33 per cent below what we typically see in July, but the first time they have pushed above 4,000 units in nearly two years. Although the majority of supply growth occurred for homes priced above $600,000, the rise has helped shift the Calgary market away from the extreme sellers’ market conditions experienced throughout the spring.
CREB Housing Market Insights
July sales eased by 10 per cent over last year’s record high but were still higher than long-term trends for the month. Like last month, the pullback in sales has been driven by homes priced below $600,000. Nonetheless, the gain in inventory combined with slower sales caused the months of supply to rise to 1.8 months, still low enough to favour the seller but a significant improvement from the under one month reported earlier this year.
Improved inventory and supply helped slow the pace of monthly price growth for each property type. In July, the total residential benchmark price was $606,700, similar to last month and nearly eight per cent higher than last year’s levels.
“While we are still dealing with supply challenges, especially for lower-priced homes, more options in both the new home and resale market have helped take some of the upward pressure off home prices this month."
“This is in line with our expectations for the second half of the year, and should inventories continue to rise, we should start to see more balanced conditions and stability in home prices.”
Detached Homes
Detached home sales in July fell by eight per cent, as the 15 per cent rise for homes priced above $600,000 was not enough to offset the 50 per cent decline occurring in the lower price ranges. The decline in the lower price ranges reflects limited availability as inventories and new listings continue to fall for lower-priced homes. Year-to-date detached sales have eased by just over one per cent compared to last year.
With 1,098 sales and 1,721 new listings this month, inventories rose to 1,950 units. Inventories are still low based on historical levels, but the gain did help push the months of supply up to nearly two months and supports some stability in prices. The unadjusted benchmark price in July was $767,800, similar to last month but 11 per cent higher than last July.
Semi-Detached Homes
Relative affordability continues to attract purchasers to the semi-detached sector. While sales did slow slightly compared to last year, year-to-date sales reached 1,518 units, six per cent higher than last year. The growth in sales was possible thanks to gains in new listings. However, conditions remain relatively tight, with a 76 per cent sales-to-new listings ratio and months of supply of 1.5 months.
While the pace of monthly price growth has slowed, at an unadjusted benchmark price of $687,900, prices are nearly 12 per cent higher than last year. The highest price growth continues to occur in the city’s most affordable North East and East districts.
Row Homes
Gains in row new listings relative to a pullback in sales caused the sales-to-new listings ratio to fall to 73 per cent this month. This supported gains in inventory levels, and the months of supply rose to 1.3 months.
While conditions continue favouring the seller, the shift prevented further monthly price gains this month. Nonetheless, at a benchmark price of $464,200, levels are still nearly 15 per cent higher than last year. Year-over-year price gains have ranged from a low of 13 per cent in the City Centre and North districts to over 20 per cent in the North East and East districts.
Apartments
Sales in July slowed to 659 units, as a significant drop in sales occurred for properties priced below $300,000. Like the other property types, limited supply choices for the lower-priced units prevented stronger sales activity.
New listings in July were 1,043 units, high enough to cause the sales-to-new listings ratio to fall to 63 per cent. This supported inventory gains and months of supply of over two months. Improved supply relative to sales helped slow the pace of monthly price growth. However, the unadjusted benchmark price of $346,300 is still 17 per cent higher than levels reported last year at this time.
Calgary Housing Market Trends
The latest CREB report highlights significant shifts in the Calgary housing market trends. Inventory and supply levels have started to improve, taking some pressure off prices. This is evident across various property types, including detached homes, semi-detached homes, row homes, and apartments. The unadjusted benchmark price for total residential properties in Calgary was $606,700 in July, reflecting nearly an eight per cent increase from last year. The Calgary real estate market update indicates that while sales have eased compared to last year’s record highs, they remain higher than long-term trends. This trend is observed across different districts, including the City Centre, North East, North West, and South East areas of Calgary.
Calgary property prices in 2024 continue to reflect the city’s dynamic real estate landscape, with significant year-over-year gains in benchmark prices. The inventory and supply dynamics have also shifted, particularly for homes priced above $600,000, helping to alleviate the extreme sellers’ market conditions experienced earlier in the year. This comprehensive analysis provides valuable insights for Calgary realtors and those interested in the Calgary real estate market.
Regional Market Facts
Relative affordability continues to attract purchasers to the semi-detached sector. While sales did slow slightly compared to last year, year-to-date sales reached 1,518 units, six per cent higher than last year. The growth in sales was possible thanks to gains in new listings. However, conditions remain relatively tight, with a 76 per cent sales-to-new listings ratio and months of supply of 1.5 months.
While the pace of monthly price growth has slowed, at an unadjusted benchmark price of $687,900, prices are nearly 12 per cent higher than last year. The highest price growth continues to occur in the city’s most affordable North East and East districts.
Airdrie
New listings in July rose to 287 units, the highest level ever reported for July. At the same time, sales slowed to 186 units, supporting some gains in inventory levels. While inventories have improved, the 298 units are still 26 per cent lower than typical levels seen in July.
Inventory gains have occurred across most price ranges in Airdrie but conditions continue to remain relatively tight, especially in the lower price ranges of each property type. Overall, the unadjusted benchmark price in July was $553,900, similar to last month but eight per cent higher than last year’s levels.
Cochrane
July sales improved over last year’s levels, contributing to the year-to-date gain of nearly eight per cent. While new listings also improved compared to last year in July, it was not enough to cause any significant shift from the low inventory levels.
With a sales-to-new-listings ratio of 83 per cent and months of supply of 1.5 months, the market remained relatively tight, and prices continued to rise. In July, the unadjusted benchmark price reached $576,600, nearly one per cent higher than last month and nine per cent higher than last year’s levels.
Okotoks
A pullback in sales relative to new listings helped support gains in higher inventory levels in Okotoks. While inventory levels are 25 per cent higher than last year, the 85 units still reflect exceptionally low inventory levels and are half the levels typically seen in July.
With a sales-to-new listings ratio of 78 per cent and months of supply of 1.3 months, conditions continue to favour the seller. While there have been some monthly price fluctuations, the unadjusted benchmark price in July reached $622,200, over six per cent higher than last July.
Interest Rate and Price Increases
The Calgary real estate board has noted that current interest rates and price increases are also influencing market dynamics. Property investment remains a key consideration for home buyers and those interested in commercial real estate Calgary lease opportunities. Calgary listings continue to reflect a diverse range of options, from affordable housing to higher-end properties, catering to various price ranges and buyer needs.
Calgary Real Estate Forum and Real Estate Tips
The city of Calgary remains a focal point for real estate discussions, with forums and events providing real estate tips and insights. The Calgary real estate forum is an excellent platform for discussing trends, sharing experiences, and gaining valuable information about the Calgary housing market.
Creb Report August 2024
For those considering a home in Calgary, whether it’s a row house, semi-detached house, or an apartment, understanding the current market trends is crucial. The Calgary real estate market, influenced by various factors including interest rates, inventory and supply levels, and price dynamics, offers a range of opportunities for buyers and investors alike.
The Calgary real estate board continues to monitor these trends, providing updates and insights to help navigate the ever-evolving market landscape. Calgary homes and Calgary properties remain attractive to those interested in home buying in Canadian cities. As Calgary property prices in 2024 reflect, house price trends continue to be a vital part of the city’s real estate market landscape.
