Calgary Real Estate Market Update- October 2024

November 1, 2024

Supply levels improving for higher-priced homes

In October, the real estate market held steady compared to
last year, with rising sales in homes priced over $600,000 counterbalancing lower activity in more affordable ranges. October saw 2,174 sales, marking a monthly increase and standing 24% above long-term averages for the month.

“Housing demand has been resilient as we head into Q4, with October sales picking up from September,” noted Ann-Marie Lurie, Chief Economist at CREB®. “However, a broader range of supply at lower price points would likely have boosted activity further. While overall supply levels have improved compared to last year’s lows, most of the gains are in higher-priced properties. This creates a more balanced market at the higher end, while lower to mid-price ranges remain seller-driven.”

The past six months have seen inventory build up as new listings have outpaced sales, reaching 4,966 units in October—significantly up from last October’s near-record low of 3,205 units. While inventory levels now align more closely with long-term trends, nearly half of this year’s residential listings are priced above $600,000.

Supply adjustments have helped ease the tight market conditions from spring, but the market remains relatively constrained. With only 2.3 months of supply and a 67% sales-to-new-listings ratio, supply varies widely by price and property type. For instance, detached homes under $700,000 have less than two months of supply, while homes over $1,000,000 report over three months of supply—leading to different price pressures across segments.

In October, the total residential benchmark price reached $592,500, over 4% higher than last year and averaging an 8% year-to-date gain over 2023. Seasonal shifts caused a slight dip in unadjusted prices from September, while seasonally adjusted prices remained stable.

Detached Homes
Sales rose to 1,071 in October, up from September and nearly 10% higher than last year. Although new listings exceeded last year’s figures, they slowed from September, lifting the sales-to-new-listings ratio to 69% and keeping inventory flat at 2,199 units.

The unadjusted benchmark price for detached homes was $753,900, a slight decrease from September but still 8% higher than last October, thanks to more options in higher price ranges relieving pressure on prices.

Semi-Detached Homes
October sales climbed from September, exceeding last year’s figures by 6% and adding to a year-to-date increase of over 3%. An increase in new listings has bolstered inventory and pushed the market closer to balance, particularly for higher-priced semi-detached homes. Despite this shift, limited supply still favors sellers, with two months of inventory.

October’s unadjusted benchmark price was $677,000, matching September and up over 8% year-over-year, with an average year-to-date gain of more than 11%.

Row Homes
Sales have slowed since mid-year, but demand remains strong, particularly for homes under $400,000, where limited supply has constrained sales. October marked the first time since 2021 that the months of supply for row homes rose above two months, driven by inventory gains in higher price ranges, which have eased pressure on prices.

The unadjusted benchmark price for row homes in October was $456,600, over 8% higher than last year, with year-to-date prices averaging nearly a 16% gain.

Apartment Condominiums
October sales rose from September but showed a year-over-year decline for the fifth straight month. Despite this dip, 2024’s 6,782 year-to-date sales are only slightly lower than last year’s record high and are almost double the previous decade’s average. High lending rates, rising rents, and limited affordable options have bolstered demand for apartments, although lower-priced units have seen fewer sales due to tight supply. October inventory growth primarily came from properties priced between $300,000 and $500,000, which helped balance conditions.

The unadjusted benchmark price was $341,700 in October, 11% above last year, with seasonal factors and new construction softening monthly prices slightly. Year-to-date, prices are up nearly 17%.

Regional Market Highlights
Airdrie
Sales and new listings outpaced last October, though a slowdown in new listings raised the sales-to-new-listings ratio to 67%, which curbed monthly inventory growth. Inventory rose to 365 units, up significantly from last year’s 213, helping balance the market.

October’s unadjusted benchmark price declined slightly month-over-month but remains 5% higher than last October.

Cochrane
Sales in Cochrane exceeded last year, aligning with long-term trends. October’s record-high new listings bolstered inventory to 178 units, but levels are still below historical trends, keeping the months of supply at 2.3. Conditions are not as tight as in spring, slowing price growth, with October’s unadjusted benchmark price 6% above last year.

Okotoks
October sales rose from last year as additional new listings offered more choices to buyers. Inventory reached 103 units in October, up from last year’s low of 66.

Seller-favorable conditions remain strong, with less than two months of supply. The October unadjusted benchmark price eased slightly month-over-month but stands 6% above last year and 8% higher year-to-date.