Sales activity reached a new high in February, with 3,305 sales, mainly to a surge in new listings. Adjusted inventories have climbed above last month's levels as a result of the increase in new listings. With only one month's supply, the market continues to favour the seller.
"Due to a lack of supply options in the market, sales have been limited.
"While sellers responded with a record number of new listings this month, demand has been so high that the housing market remains undersupplied, causing price rises to continue," said Ann-Marie Lurie, CREB® Chief Economist.
The city's entire residential benchmark price grew by about 6% from January to February, and was over 16% higher than the same month the previous year. Much of the expansion has come from the detached market, which hasn't seen conditions this tight in over 15 years.
This is the fourth month in a row that the market has experienced much tighter conditions than those experienced in the city last spring. While the surge in new listings will provide buyers more options and eventually lead to more balanced market circumstances, working through the demand will take time.
Detached Homes in Calgary
The detached sector's months of supply has stayed below one month for the third month in a row. Prices have been under severe increasing pressure due to a lack of supply and persistently high demand. The benchmark price in February was $596,400, about $50,000 higher than prices at the end of 2021 and nearly $90,000 higher than prices in February 2021. Every district of the city has seen price increases, with year-over-year increases exceeding 20% in the North, South, and South East regions.
Sales growth has been strongest in the $600,000 to $1,000,000 price bracket after the first two months of the year, as this is where the most new listings have been added. Overall, conditions are still extremely tight across the board, with less than a month's supply for all houses priced under $1,000,000 in the first two months of the year.
The record number of new listings in February were matched by record-breaking February sales, adding to the pressure in this market segment. The months of supply fell to one, something that hasn't happened since February 2006.
Prices were pushed even higher by the continuing and unusually tight conditions. The semi-detached unadjusted benchmark price reached $461,400 in February, approximately 5% higher than previous month and 16% higher than February 2021 levels, thanks to advances in every district.
Many clients were drawn to row style residences due to a lack of supply in other property types. However, after several months of high sales compared to new listings, inventory levels have trended lower than we've seen in the past at this time of year. For the first time since early 2007, the months of supply dipped below one month in February, with 537 sales and 535 units in inventory.
The prolonged sellers' market conditions resulted in significant monthly price increases in most of the city's districts. The most significant month-to-month growth happened at the city's north east, north, and west ends. Despite recent gains, prices in all districts, with the exception of the West, remain below prior highs.
After lagging behind other property categories, sales in the apartment condominium sector soared this month, setting new highs for the month. New listings improved as well, but did not have a substantial impact on inventory levels. The months of supply in the apartment condo sector fell below two months for the first time since 2007.
This month, pricing pressure has been supported by recent tightness. However, price increases are far lower than for other property kinds, and prices are still over 14% below prior highs. While this area of the market has not faced the same supply constraints as other property types, if supply constraints persist, we may see more significant price recovery.
Calgary's Suburban Communities
There were a record number of new listings in February, which resulted in a record number of sales. The sales-to-new-listings ratio dipped to 75 percent, the lowest it's been since spring of last year, with 385 new listings and 289 transactions. While recent progress has resulted in a monthly improvement in inventory levels, supply remains extremely low, with months of supply below one month for the fourth month in a row.
Due to continually tight market conditions, notably in the detached and semi-detached segments, the market has seen significant price growth. In February, the unadjusted detached price was $490,800, up nearly 6% from the previous month and 22% higher than last year's prices.
In February, the number of new listings hit a monthly high. Sales, on the other hand, virtually matched the number of new listings, forcing inventories to drop even further and months of supply to collapse to the lowest levels ever recorded, at less than half of a month's supply. The months of supply have been below one month for the fourth month in a row, and the sellers' market conditions are putting significant upward pressure on prices, particularly for detached and semi-detached properties.
The unadjusted detached benchmark price in February was $548,400, about 7% higher than the previous month and over 21% more than the previous February. All property types have seen price increases, but apartment-style properties have continued to record prices below their 2007 highs.
Gains in new listings, like in other markets, aided sales in February to reach new highs. However, the increase in new listings was insufficient to make a significant difference in the low inventory scenario. With only 56 pieces in stock at the end of the month, February's inventory is the lowest it's been since 2006. Strong sales paired with low inventory prompted the months of supply to go even lower, to less than one month for the third month in a row.
Prices rose as a result of the market's continued tightness. The benchmark price for a detached home in February was $554,900, over 8% higher than last month and nearly 15% more than last February.