Calgary Real Estate Market Update- January 2024

February 1, 2024
City Market Highlights: Strong Sales Fueled by Increased Listings

January experienced robust real estate sales, with a notable surge to 1,650 units, marking a substantial increase from both the previous year and long-term averages. The upswing was driven by a rise in new listings, reaching 2,137 units, new listings rose for homes priced above $300,000, particularly prominent in the $700,000 and above price range.

Despite the increase in new listings, the city’s inventory levels remained near record lows, totaling 2,150 units, levels are near the January record lows set in 2006 and reflecting a 49% decline from the long-term average. Ann-Marie Lurie, Chief Economist at CREB®, commented on the persistent supply challenges, stating that while the surge in new listings provided options for buyers, it did not alleviate the tight market conditions, supporting continued price growth.

Market Metrics:
Months of Supply: January reported 1.3 months, a decrease from the previous month and the same period last year.

Benchmark Price: Unadjusted benchmark price reached $572,300 in January, reflecting a monthly increase and a ten percent year-over-year rise.

Detached Homes:
New listings facilitated increased sales, but with a sales-to-new-listings ratio of 77%, inventory challenges persisted. The market conditions led to further price growth, with the unadjusted detached price reaching $702,200 in January, almost 13% higher than the previous year. Year-over-year price gains ranged from a low of 10 per cent in the City Centre and South East districts to a 27 per cent gain in the East district of the city.

Semi-Detached:
The sector saw a notable shift with a sales-to-new-listings ratio falling to 59%. Despite an improvement in inventories, they remained below long-term trends. The unadjusted benchmark price for January was $625,000, showing a slight decline from the previous month but still over 11% higher than the same period last year. The monthly decline was driven mainly by adjustments in the higher-priced districts of the West and City Centre.

Row Properties:
New listings and sales increased, maintaining an exceptionally high sales-to-new-listings ratio of 92%. Limited supply and strong demand contributed to a rise in prices, the unadjusted benchmark reaching $426,400, up almost 20% from 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 Condominiums:
Apartment-style properties experienced a 54% year-over-year increase in sales, driven by new listings. However, inventories remained 40% below long-term trends. The unadjusted benchmark price in January reached $324,000, nearly one per cent higher than last month and 19 per cent 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.

Regional Market Facts

Airdrie:
Strong detached and row sales offset pullbacks in semi-detached and apartment sectors, leading to an overall increase in total residential sales. The unadjusted benchmark price remained stable but was nearly 10% higher than January 2023. The most substantial price gains have occurred for apartment-style homes, which are the most affordable property type.

Cochrane:
Eighty-three new listings and 70 sales occurred in January, Despite a high sales-to-new-listings ratio, the months of supply fell below two months, indicating a shift. The unadjusted benchmark price eased slightly, but prices across all property types remained over 10% higher than last January.

Okotoks:
Increased sales and new listings rose in January resulting in a sales-to-new-listings ratio of 75%. However, the gain in new listings did not significantly impact low inventory levels, maintaining tight conditions. The benchmark price in January reached $589,600, reflecting growth across all property types, with gains ranging from a high of 15 per cent for row properties to a low of six per cent for apartment-style homes.

The January 2024 real estate market continued to navigate supply challenges, with new listings providing relief to buyers but not enough to significantly impact overall inventory levels. The persistent tight market conditions contributed to continued upward pressure on home prices across various property types and regions.