Low inventory and high demand drive price gains in February
City of Calgary, March 1, 2024 – New listings continued to rise in February, reaching 2,711 units. However, the rise in new listings supported further growth in sales, which increased by nearly 23 percent compared to last year for a total of 2,135 units. The shift in sales and new listings kept the sales-to-new listings ratio exceptionally high at 79 percent, ensuring inventories remained near historic lows. Low supply and higher sales caused the months of supply to fall to just over one month, nearly as tight as levels seen during the spring of last year.
Purchasers are acting quickly when new supply comes onto the market, preventing inventory growth,” said Ann-Marie Lurie, Chief Economist at CREB®. “This strong demand and low supply continue to drive price gains in Calgary. The biggest supply challenge is for homes priced under $500,000, which saw inventories fall by 31 percent compared to last February. At the same time, we are starting to see supply levels rise for higher-priced homes supporting more balanced conditions in the upper end.
In February, the unadjusted benchmark price was $585,000, an over two percent gain compared to last month and over 10 percent higher than levels reported at this time last year. Our most affordable East district is experiencing the highest year-over-year price growth at 25 percent, while the relatively better-supplied City Centre has reported the slowest price growth in the city at under five percent.
Detached
In February, 1,195 new listings came onto the market, of which 75 percent were priced over $600,000. While new listings did improve over last month in line with seasonal expectations, levels are still below typical levels for February. At the same time, sales in February rose to 954 units, a year-over-year gain of 20 percent. The growth in sales was driven by where we saw listings growth, but with a sales-to-new listings ratio of nearly 80 percent, inventory levels were near record lows for February.
Exceptionally tight market conditions drove further price growth. In February, the unadjusted detached benchmark price rose to $721,300, nearly three percent higher than last month and over 13 percent higher than last February. While prices rose across every district, the most significant year-over-year gains occurred in the North East and East districts.
Semi-Detached
Last month’s rise in listings compared to sales was short-lived, as the 223 new listings this month were met with 191 sales, driving up the sales-to-new-listings ratio to 86 percent. This prevented any significant change to the low inventory situation and caused the months of supply to fall to just over one month.
In February, the unadjusted benchmark price reached $639,100, a monthly gain of over two percent and 13 percent higher than last year. Year-over-year price gains ranged from a low of 10 percent in the City Centre to over 26 percent in the East district.
Row
New listings rose to 457 units in February, contributing to the year-to-date increase in new listings of 22 percent. The rise in new listings supported sales growth, preventing any significant change to the low inventory situation. For the second consecutive month, the months of supply were below one month.
The exceptionally tight market conditions have contributed to strong price growth for row properties. In February, the unadjusted detached price reached $436,500, over 2 percent higher than last month and nearly 19 percent higher than levels reported last February. Prices rose across all districts, with the highest growth occurring in the most affordable districts.
Apartment Condominium
Sales in February reached 638 units, contributing to the year-to-date sales increase of 39 percent. Relative affordability has supported the strong demand for apartment-style homes, and sales growth has been possible thanks to the continued growth in new listings. Inventory levels trended up over the last month in line with seasonal expectations. However, inventory levels declined by 12 percent compared to last year, ensuring the market continued to favour the seller with just over one month of supply.
Persistently tight conditions continued to place upward pressure on home prices. Prices have steadily increased since January of last year, and as of February, they reached $329,600, a 17 percent gain over last February. Prices rose across every district in the city, with year-over-year gains surpassing 19 percent in all districts except the City Centre, which reported a year-over-year gain of 13 percent.
January sees strong sales fueled by a boost in new listings
City of Calgary, Feb. 1, 2024 – January sales rose to 1,650 units, a significant gain over last year’s levels and long-term trends. The growth was possible thanks to a rise in new listings totalling 2,137 units in January. New listings rose for homes priced above $300,000, but the largest gains occurred for homes priced above $700,000.
The rise in new listings relative to sales did little to change the low inventory situation in the city. With 2,150 units in inventory, levels are near the January record lows set in 2006 and are nearly 49 percent below the long-term average for the month.
“Supply challenges have been a persistent problem since last year. This month’s gain in new listings has helped provide options to potential purchasers, supporting sales growth. However, the growth in sales prevented any significant adjustments in supply, keeping conditions tight and supporting further price growth,” stated Ann-Marie Lurie, Chief Economist at CREB®.
The months of supply in January was 1.3 months, falling over last month’s and last year’s levels. The persistent tightness in the market contributed to further upward pressure on home prices. The unadjusted benchmark price in January reached $572,300, a gain over last month and ten percent higher than levels reported last January.
Detached
A boost in new listings helped support stronger sales this month. However, with a sales-to-new-listings ratio of 77 percent, there was minimal change in the low inventory situation reported in the detached sector. New listings rose for all homes priced above $500,000, but the largest gains occurred in the over $700,000 market segment. Low inventory levels compared to sales prevented any improvement in the months of supply, which at 1.4 months was lower than levels reported last month and last January.
The exceptionally tight market conditions continued to drive further price growth. In January, the unadjusted detached price reached $702,200, nearly one percent higher than last month and nearly 13 percent higher than prices reported last year. Year-over-year price gains ranged from a low of 10 percent in the City Centre and South East districts to a 27 percent gain in the East district of the city.
Semi-Detached
With 223 new listings and 131 sales, the sales-to-new listings ratio fell to 59 percent, the lowest level reported since 2020 and significantly improved over the 82 percent average reported in 2023. The sudden shift did cause inventories to improve over the last month, but they remain well below long-term trends.
The unadjusted benchmark price in January was $625,000, slightly lower than last month but over 11 percent higher than last January. The monthly decline was driven mainly by adjustments in the higher-priced districts of the West and City Centre.
Row
Like other property types, new listings and sales rose in January over levels reported last month and last year. However, with 322 new listings and 297 sales, the sales-to-new listings ratio remained exceptionally high at 92 percent. This contributed to further reductions in inventory levels, and the months of supply once again fell below one month.
Limited supply and strong demand contributed to a rise in prices. In January, the unadjusted benchmark price reached $426,400, up over last month and nearly 20 percent higher than levels reported in January 2023. While year-over-year prices are higher in every district, the West and City Centre districts saw unadjusted benchmark prices ease slightly over December.
Apartment Condominium
Apartment-style properties continued to see the most significant gain in sales activity, rising to 488 sales in January, a year-over-year increase of 54 percent. This was possible thanks to the growth in new listings. However, the gain in listings did little to supply levels; with 682 units, inventories were 40 percent below long-term trends.
Tight market conditions continued to contribute to further price gains. In January, the unadjusted benchmark price reached $324,000, nearly one percent higher than last month and 19 percent higher than last January. Prices rose across all districts, with the largest year-over-year gains occurring in the most affordable districts of the North East and East.
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Increased listings, strong sales, and price growth
New listings in November reached 2,227 units, nearly 40 percent higher than the exceptionally low levels reported last year at this time. Gains in new listings occurred across most price ranges, but the most significant gains occurred from homes priced over $600,000.
Despite the year-over-year jump in new listings, inventory levels remained low thanks to relatively strong sales. With 1,787 sales in November, the sales-to-new listings ratio remained high at 80 percent, and the months of supply remained below two months.
“Like other large cities, new listings have been increasing,” said CREB® Chief Economist Ann-Marie Lurie. “However, in Calgary, the gains have not been enough to change the low inventory situation thanks to strong demand. Our market continues to favour the seller, driving further price growth.”
As of November, the benchmark price was $572,700, up over last month and nearly 11 percent higher than November 2022. Year-to-date, the average benchmark price has risen by over five percent.
Detached
Limited supply choice for homes priced below $700,000 has been the primary cause of the decline in detached home sales. While November reported a marginal gain over last year, year-to-date sales have declined by 20 percent. November saw a rise in new listings compared to the previous year, but higher-priced homes drove most gains. This has left the detached market with exceptionally tight conditions for prices below $700,000 and more balanced conditions for higher-priced homes. Overall, the month of supply remains exceptionally low at under two months.
Persistently tight conditions continue to cause further price gains in the detached market. As of November, the unadjusted benchmark price reached $699,500, a slight increase over last month and over 13 percent higher than last November. While detached home prices are much higher than last year’s levels in every district, year-to-date gains are the highest in the most affordable districts of the Northeast and East.
Semi-Detached
November saw a boost in new listings compared to last year, helping to prevent a year-over-year decline in inventory levels. However, inventory levels are still over 40 percent below typical levels seen in November. With a sales-to-new-listings ratio of 77 percent and a month-of-supply below two months, conditions remain exceptionally tight, especially for homes priced below $700,000.
Despite tight conditions, benchmark prices remained stable compared to last month. However, at an unadjusted benchmark price of $628,700, prices are still over 12 percent higher than last year. The year-to-date average benchmark price has risen by nearly seven percent, with the largest gains occurring in the North East and East districts.
Row
New listings rose again this month compared to last year. The 370 new listings were met with 267 sales, and for the first time since 2021, the sales-to-new-listings ratio fell below 75 percent. The jump in new listings was enough to support a gain in inventory levels compared to last month and last year. While inventories are still nearly half the levels we traditionally see, this did help cause the months of supply to push up to 1.6 months, a significant improvement from the less than one month of supply that has persisted over the past seven months. While conditions are much more balanced in the higher price ranges, there is less than one month of supply for homes priced below $500,000.
Despite the shift away from exceptionally tight conditions, prices still rose over the last month and last year. As of November, the unadjusted benchmark price reached $429,100, 21 percent higher than last November and an average year-to-date gain of nearly 13 percent.
Apartment Condominium
Thanks to the relative affordability of the apartment-style homes, sales continued to reach record highs in November, contributing to year-to-date sales of 7,487. With one month left in the year, sales have already surpassed last year’s record high. This, in part, was possible thanks to the growth in new listings. While inventory levels are similar to levels reported last year, with less than two months of supply, conditions still favour the seller, placing further upward pressure on prices.
The unadjusted November benchmark price reached $320,100 in November, a monthly gain of over one percent and a year-over-year increase of 18 percent. Year-to-date price gains have occurred across every district in the city, with some of the largest gains arising in the lower-priced North East and East districts.
Price gains continue in Calgary’s real estate market as inventory remains low
City of Calgary, November 1, 2023 – October sales activity slowed over the last month in alignment with typical seasonal patterns. However, with 2,171 sales, levels were 17 percent higher than last year and amongst the highest levels reported for October. Sales activity has been boosted mainly through gains in apartment condominium sales as consumers seek affordable housing options during this period of high interest rates.
New listings also improved this month compared to last year, reaching 2,684 units, reflecting the highest October levels reported since 2015. Despite the gain, relatively strong sales prevented any significant shift in inventory levels, which remain over 40 percent lower than levels traditionally available in October.
“Despite some recent improvements in new listings, supply levels remain challenging in our market,” said CREB® Chief Economist Ann-Marie Lurie. “It will take some time to see a shift toward more balanced conditions and ultimately more price stability.”
With a month of supply of one and a half months, we continue to experience upward pressure on home prices. The unadjusted benchmark price in October reached $571,600, a gain over last month and nearly 10 percent higher than last October.
Detached
Both sales and new listings improved over levels reported last October. However, with 1,302 new listings this month and 976 sales, inventory levels slowed over the last month. Inventory levels remain the lowest ever reported for October. Inventory levels have declined for all homes priced below $700,000, leaving conditions exceptionally tight for lower-priced homes. The only area where conditions are not as tight as last year is for homes priced above $1,000,000, where the months-of-supply has risen to 4.3 months.
Persistently tight conditions continue to cause further price gains in the detached market. As of October, the unadjusted benchmark price reached $697,600, a slight increase over last month and 12 percent higher than last October. Prices trended up over the last month across every district except the South East. Year-to-date benchmark prices have increased the most in the North East and East districts.
Semi-Detached
New listings in October improved over the low levels reported last year. However, with 235 new listings and 179 sales, the sales-to-new listings ratio remained relatively high at 76 percent, preventing any significant change in the inventory levels. Inventory levels are nearly half the levels traditionally seen in October and have not been this low since October 2005.
Persistently tight conditions have continued to support price growth. In October, the unadjusted benchmark price increased over the last month, reaching $628,700, a year-over-year gain of 13 percent. Prices trended up over September across most districts, with the most significant monthly gain occurring in the City Centre district. Like the detached sector year-to-date, the highest price growth has happened in the most affordable districts of the North East and East.
Row
The 420 new listings this month were met with 375 sales, keeping the sales-to-new listings ratio high at 89 percent and preventing a significant shift in inventory levels. Row inventory levels have not been this low since October 2005. At the same time, October sales reached a record high for the month, keeping the months of supply low at one month.
Persistently tight market conditions have supported further gains in prices this month. In October, the unadjusted benchmark price reached $425,200, a monthly gain of over one percent and nearly 19 percent higher than last October. Prices have risen across most districts, but this month, the largest monthly gain occurred in the City Centre, which has also seen the lowest year-to-date price growth compared to the other districts.
Apartment Condominium
Record high sales in October were possible thanks to the steep gain in new listings. However, with 727 new listings and 641 sales, the sales-to-new listings ratio remained high at 88 percent, and inventories continued to trend down. The decline in inventory levels has been driven mostly by condos priced below $300,000, which now represent only 38 percent of all inventory, a significant decline compared to the 53 percent reported last year.
Persistent seller market conditions have driven much of the recent gains in prices. The unadjusted October benchmark price reached $316,600 in October, a monthly gain of over one percent and a year-over-year increase of 16 percent. Year-to-date price gains have occurred across every district in the city, with some of the largest gains arising in the lower-priced North East and East districts.