Calgary Real Estate Market Update- August 2024

September 4, 2024

Calgary housing market sees shifts

Housing market activity continues to move away from the extreme sellers’ market conditions of the spring. Easing sales and increasing supply pushed the months of supply above two months in August, a level not seen since the end of 2022.

“As expected, rising new home construction and gains in new listings are beginning to support a better-supplied housing market,” said Ann-Marie Lurie, Chief Economist at CREB®. “This trend will likely persist throughout the rest of the year, but supply levels remain low, particularly for lower-priced properties. It will take time for supply levels to reach those that support more balanced market conditions.”

In August, inventory levels reached 4,487 units, 37% higher than last August but nearly 25% below long-term trends for the month. The supply gains were mainly driven by higher-priced properties, while the more affordable homes in each property type continued to experience supply declines.

The increase in supply resulted from a combination of more new listings in August and a decline in sales activity. There were 2,186 sales in August, a 20% drop from last year’s record high, but still 17% above long-term averages for the month. Sales declines were particularly noticeable in homes priced below $600,000.

Following stronger-than-expected price growth earlier in the year, the pace of growth has started to slow. In August, the total unadjusted residential benchmark price was $601,800—6% higher than last year and slightly lower than last month. Year-to-date, the average benchmark price has risen by 9%.

Detached Homes
Detached home sales fell 14% compared to last year, as gains in homes priced above $600,000 were not enough to offset declines in the lower price ranges, which are still struggling with low supply. In August, there were 2,011 detached homes in inventory, with over 85% priced above $600,000.

The improving supply in the higher-end market compared to sales pushed the months of supply to nearly two months. While market conditions remain tight, this is a significant improvement from the under-one-month supply seen in the spring. These shifting conditions are easing pressure on prices. In August, the unadjusted detached benchmark price was $762,600, slightly lower than last month but still over 9% higher than last year.

Semi-Detached Homes
With 297 new listings and 172 sales, the sales-to-new-listings ratio in August dropped to 58%, closer to pre-pandemic levels. This supported an increase in inventory, with the months of supply rising to nearly two months.

While conditions remain somewhat tight, the additional new listings have helped ease price pressure. In August, the unadjusted benchmark price was $681,200, a decrease from last month but almost 10% higher than last year.

Row Homes
New listings of row homes priced above $400,000 contributed to year-to-date growth of nearly 16%. Slower sales over the past three months have led to inventory gains, with 660 units available in August—a 75% increase over last year’s exceptionally low levels. While inventories remain low by historical standards, the increased supply is relieving some pressure on prices.

The unadjusted benchmark price for row homes in August was $461,700, slightly down from last month but more than 12% higher than last year. Price changes varied by district, with the City Centre, North West, North, and West districts showing monthly declines. Nonetheless, year-over-year prices remain higher across all districts, ranging from a 10% increase in the City Centre to 26% in the East district.

Apartment Condominiums
New listings for apartment condominiums reached 1,001 units in August, a record high for the month. These gains were met with a slowdown in sales, pushing the sales-to-new-listings ratio down to 60% and causing inventories to rise to 1,476 units. Unlike other property types, condominium inventory levels in August were relatively in line with long-term trends.

The rising inventory and easing sales pushed the months of supply to nearly two and a half months—still lower than pre-pandemic levels but an improvement over the extremely tight conditions of the past 18 months. In August, the unadjusted benchmark price for condominiums was $346,500, nearly 16% higher than last year and similar to last month.

Regional Market Facts
Airdrie
New listings in Airdrie increased compared to last year. With 242 new listings and 172 sales, the sales-to-new-listings ratio remained high at 71%, preventing a significant gain in inventory and keeping the months of supply below two months. The tightest market conditions remain in the lower price ranges for all property types.

While the market still favors sellers, conditions are less tight than in the spring, easing some pressure on prices. In August, the unadjusted benchmark price was $553,300, nearly 8% higher than last year and similar to last month.

Cochrane
Cochrane saw 81 sales and 109 new listings in August, keeping the sales-to-new-listings ratio elevated at 74%, which prevented a rise in inventory. With only 144 units available, inventory levels were 42% below long-term trends.

The persistently tight market continues to push prices up. In August, the unadjusted benchmark price was $578,600, slightly higher than last month and more than 8% higher than last year. The largest price gains occurred in apartment-style properties.

Okotoks
A boost in detached sales in August supported an increase in overall sales compared to last year. With 67 sales and 84 new listings, the sales-to-new-listings ratio was near 80%, preventing a significant shift in inventory levels, which remain nearly 47% below long-term trends.

With just over one month of supply, conditions remain tight. The unadjusted benchmark price in August was $622,700, similar to last month and over 7% higher than last year.