Calgary Real Estate Market Update- July 2024

August 1, 2024

Supply levels improve, taking some pressure off

With the busy spring market behind us, we are observing some shifts in supply levels. In July, there were 2,380 sales and 3,604 new listings, resulting in a sales-to-new-listings ratio of 66%, which contributed to an increase in inventory. Inventory levels rose to 4,158 units, still 33% below typical July levels but marking the first time in nearly two years that they have surpassed 4,000 units.

Most of the supply growth occurred in homes priced above $600,000, helping to ease the extreme sellers’ market conditions experienced throughout the spring.

“While we still face supply challenges, especially for lower-priced homes, increased options in both the new and resale markets have helped alleviate some of the upward pressure on home prices this month,” said Ann-Marie Lurie, Chief Economist at CREB®. “This aligns with our expectations for the second half of the year, and if inventories continue to rise, we should see more balanced conditions and price stability.”

July sales decreased by 10% from last year’s record high but remained higher than long-term trends for the month. The decline in sales was driven by homes priced below $600,000.

The increase in inventory, coupled with slower sales, raised the months of supply to 1.8 months, still low enough to favor sellers but a significant improvement from the less than one month reported earlier this year.

The improved supply helped slow the pace of monthly price growth across property types. In July, the total residential benchmark price was $606,700, similar to last month and nearly 8% higher than last year.

Detached Homes
Detached home sales in July fell by 8%, as a 15% increase in sales for homes priced above $600,000 was not enough to offset a 50% decline in lower price ranges.

The decline in 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 1% compared to last year.

With 1,098 sales and 1,721 new listings in July, inventories rose to 1,950 units. While still low by historical standards, this increase helped push the months of supply up to nearly two months, supporting some price stability. The unadjusted benchmark price in July was $767,800, similar to last month but 11% higher than last July.

Semi-Detached Homes
Relative affordability continues to attract buyers to the semi-detached sector. While sales slowed slightly compared to last year, year-to-date sales reached 1,518 units, 6% higher than last year.

Sales growth was enabled by increased new listings. However, conditions remain relatively tight, with a 76% sales-to-new-listings ratio and 1.5 months of supply.

While monthly price growth has slowed, the unadjusted benchmark price of $687,900 is nearly 12% higher than last year. The highest price growth continues to occur in the North East and East districts, the most affordable areas in the city.

Row Homes
Increased new listings for row homes relative to a decline in sales caused the sales-to-new-listings ratio to fall to 73% in July, supporting inventory gains and raising the months of supply to 1.3 months.

While conditions still favor sellers, the shift prevented further monthly price gains. Nonetheless, the benchmark price of $464,200 is nearly 15% higher than last year. Year-over-year price gains ranged from 13% in the City Centre and North districts to over 20% in the North East and East districts.

Apartment Condominiums
July sales slowed to 659 units, with a significant drop in sales for properties priced below $300,000. Limited supply options for lower-priced units prevented stronger sales activity.

New listings in July totaled 1,043 units, causing the sales-to-new-listings ratio to fall to 63%, which supported inventory gains and increased the months of supply to 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% higher than last year.

Regional Market Facts
Airdrie
New listings in July rose to 287 units, the highest level ever reported for July. Sales slowed to 186 units, supporting some gains in inventory levels. While inventories have improved, the 298 units are still 26% lower than typical July levels.

Inventory gains have occurred across most price ranges in Airdrie, but conditions remain tight, especially in the lower price ranges of each property type. The unadjusted benchmark price in July was $553,900, similar to last month but 8% higher than last year.

Cochrane
July sales improved over last year, contributing to a year-to-date gain of nearly 8%. New listings also improved compared to last year in July, but not enough to significantly impact low inventory levels.

With a sales-to-new-listings ratio of 83% and 1.5 months of supply, the market remained tight, and prices continued to rise. The unadjusted benchmark price in July was $576,600, nearly 1% higher than last month and 9% higher than last year.

Okotoks
A decline in sales relative to new listings supported gains in inventory levels in Okotoks. Although inventory levels are 25% higher than last year, the 85 units still reflect exceptionally low levels and are half of typical July levels.

With a sales-to-new-listings ratio of 78% and 1.3 months of supply, conditions continue to favor sellers. Despite some monthly price fluctuations, the unadjusted benchmark price in July reached $622,200, over 6% higher than last July.