Calgary Real Estate Market Update- September 2024

October 1, 2024

New listing growth driven by higher-priced homes

Rising sales in higher price ranges couldn’t offset the decline in the lower price ranges, with September sales reaching 2,003 units, a 17% decrease from last year’s record high. Despite this, sales remained over 16% higher than traditional September levels.

“We are seeing an increase in new listings, primarily in the higher price ranges,” said Ann-Marie Lurie, Chief Economist at CREB®. “While demand remains strong across all price ranges, limited availability of lower-priced homes likely constrained sales. Although challenges in the lower price range persist, improved supply and lower lending rates should sustain demand through the fall, without the extreme seller’s market conditions that drove rapid price growth earlier this year.”

New listings in September rose to 3,687 units, the highest for the month since 2008. This increase, compared to sales, supported some inventory growth, pushing September’s inventory to 5,064 units—nearly double the low levels seen in the spring, though still below the typical 6,000 units for this time of year.

The improving inventory-to-sales ratio is gradually shifting the market toward more balanced conditions. In September, months of supply reached 2.5, up from last year’s record low, though still favoring sellers.

Additional supply has eased price pressure over the past few months, following strong spring gains. In September, the unadjusted benchmark price was $596,900, slightly lower than the previous month but more than 5% higher than last year. Year-over-year price increases ranged from nearly 9% for detached homes to 14% in the apartment condominium market. The growth in each property type surpassed the overall residential price increase, mainly due to shifting sales composition.

Detached Homes
A 9% increase in sales for homes over $700,000 couldn’t offset steep declines in homes under $600,000, leading to 942 sales in September, a 17% drop from last year. Rising new listings contributed to more balanced conditions in the higher-priced market.

The unadjusted detached benchmark price in September was $757,100, a slight dip from the previous month but nearly 9% higher year-over-year. Some price adjustments in fall are common, especially after strong spring gains. Tight conditions in the lower-priced segment have led to varied price growth across the detached market, with the North East and East districts showing the largest year-over-year gains.

Semi-Detached Homes
With 299 new listings and 182 sales in September, the sales-to-new-listings ratio rose to nearly 61%. While inventory levels have grown due to increased listings, they remain 33% below long-term September trends, with fewer than 400 units available.

September saw an improvement in months of supply, now over two months, though conditions still favor sellers. The unadjusted benchmark price eased slightly to $678,400, over 9% higher than last year.

Row Homes
In September, over 600 new listings hit the market, with more than 70% priced above $400,000. New listings improved in most districts, with 34% in the North and South districts, reflecting new home activity. Sales reached 377 units, slightly below last year’s levels.

Inventory rose to 747 units, a notable improvement over the past two years but still below long-term trends. The months of supply increased to nearly two months, signaling more balanced conditions, though sellers remain favored. The unadjusted benchmark price was $459,200, up 10% year-over-year.

Apartment Condominiums
Strong gains in new listings continued into September, with 993 units entering the market. Sales declined to 502 units, bringing the sales-to-new-listings ratio to 50% and inventories to 1,623 units. More than 72% of inventory is priced above $300,000, compared to less than 58% last year.

The increase in supply relative to sales pushed months of supply to 3.2, the highest level since late 2021. This additional supply, partly driven by the new home market, has eased some price pressure. The unadjusted benchmark price in September was $345,000, a 14% year-over-year increase. Year-to-date prices show a 17% gain.


Regional Market Facts
Airdrie:
New listings boosted inventory to 349 units in September, improving on the low levels seen over the past three years. With 151 sales, months of supply rose to 2.3. While still favoring sellers, conditions have improved from the under-two-month supply seen since early 2021. The unadjusted benchmark price was $551,000, nearly 7% higher than last year.

Cochrane:
Sales have eased in recent months, though year-to-date figures remain nearly 6% higher than last year. New listings have risen, resulting in a 50% sales-to-new-listings ratio and an increase in inventory to 174 units. September’s months of supply reached three, the highest since late 2020. While supply levels remain below long-term trends, the unadjusted benchmark price held steady at $578,300, nearly 9% higher year-over-year.

Okotoks:
Rising new listings have increased inventory over the past three months, with 106 units in September, though inventory remains low for the town.

The months of supply reached two months in September, something we have not seen consistently since early 2021. While this is a significant improvement from levels seen in the spring, conditions still favour the seller. The unadjusted benchmark price in September reached $630,300, nearly one per cent higher than last month and nine per cent higher than levels reported last year.