Calgary Real Estate Market Update: Supply-demand balance improves; price growth decreases.

 “Over the past several months, we have seen housing market conditions trend toward more balanced conditions,” 

Ann-Marie Lurie, CREB® Chief Economist


“This eased some of the upward pressure on prices, as prices are starting to stabilize following steep gains that occurred in the first half of the year.”



July sales were 2,319 units, far above long-term averages and setting a new high for the month.

The rate of sales growth has slowed in recent months, but the rate of new listings growth has also slowed.

This has helped to keep monthly inventory growth to a minimum, and while overall supply is marginally higher than last July, it is primarily due to increases in apartment and row product.


In July, there were 6,678 units in inventory, bringing the months of supply to just under three months.

As a result of these improvements, there is significantly more equilibrium between sellers and buyers.

However, months of supply varied significantly by product type, ranging from two months in the detached sector to over six months in the apartment condominium sector.


The city's benchmark price was $460,100, slightly higher than last month and about 10% higher than last July.


The detached sector has seen the most price gain, with prices now sitting 11% higher than last year and finally recovering from earlier highs in 2014.


Detatched Homes in Calgary 

Both sales and new listings decreased from the previous month, although remained higher than the previous year. Although sales are currently at record levels, the sales-to-new-listings ratio remained reasonably high at 78 percent in July, with only 1,822 new listings coming onto the market.


Slower sales compared to inventory levels resulted in an increase in months of supply. With only a little more than two months' worth of food, things are still tight. This is, nevertheless, an improvement over the previous five months. Activity varies by price category as well, with properties priced below $500,000 still experiencing tight market conditions with less than two months' supply.


This month's prices continued to rise in comparison to last month's. Prices are 11% higher than last year's levels, with a city-wide benchmark price of $539,900. Prices have risen in every district, however only the City Centre has prices that are lower than the 2014 peak.



Calgary Semi-Detached Homes


While sales activity in some districts has dropped this year compared to last, overall year-to-date numbers remain at historic highs. While new listings are higher than last year, they have been trending lower in contrast to last month, resulting in a small monthly inventory decline. After 209 sales and 577 units in inventory, the months of supply grew to over three months. This is still lower than last year's levels, but it's a far cry from the suffocating circumstances that plagued the first half of the year.


Benchmark prices have continued to climb over the previous month, but at a slower rate than other property categories. Nonetheless, levels are about 10% higher than last year and have recovered from earlier highs, with a benchmark price of $428,400 in July. While prices have risen in most districts, they have not yet entirely recovered from prior highs in the City Centre, North East, South, and East districts on a year-to-date basis.


Calgary Row Houses


Year-to-date sales have reached new highs after 351 transactions this month. While the rate of sales increase is reducing compared to earlier this year, the rate of new listings entering the market is also slowing, preventing any further monthly inventory gains.


With inventory levels over 1,000 units and somewhat fewer sales this month compared to the previous month, the months of supply have surpassed three months. While the levels are lower than last year, the more options is moderating the monthly price increase. However, prices are approximately 11% higher than they were in July of last year.

Prices have risen in every area compared to last year, with hikes ranging from 6% in the northwest to 20% in the east. Despite the gains, prices are still significantly below their previous highs.


Condominiums


Inventory levels decreased over the previous month due to fewer new listings, but they remain quite high with 1,918 units available. While sales are down from last month, they are still significantly stronger than any July in the previous six years. The greater stocks compared to sales did, however, contribute to the monthly increase in months of supply, which now stands at little under six months.


Depending on the district, more supply options are having an impact on costs. While most districts' prices have stalled or declined marginally since last month, the south and southeast areas have seen significant gains. While prices are higher than they were in July, they are still far from recovering.



Southern Alberta Real Estate Info



Airdrie


Year-to-date sales of 1,510 units were set after another record month. Airdrie sales are just shy of the yearly record high of 1,695 achieved in 2014. With only seven months of data, Airdrie sales are just shy of the annual record high of 1,695 set in 2014. Some of the factors contributing to the spike in demand are relative affordability and flexible work arrangements. At the same time, the market's supply cannot keep up. Southern Alberta's inventories continued to fall in comparison to previous months and last year.


Sales were strong, and inventories were low, keeping the months of supply barely above one month. The market circumstances of persistent sellers resulted in further price rises. The detached sector continues to see the most price growth, with benchmark prices reaching $435,300 in July, about 1% higher than last month and 15% higher than July 2020 levels.


Cochrane


July sales were rather good, contributing to the year's record-breaking pace. With less than two months' supply, conditions continue to favour the seller, but there was modest inventory growth in July. Inventory levels increased this month, thanks to an increase in new listings relative to sales. Despite minor supply increases, total inventory levels are still among the lowest seen in July since 2007.


Prices in the area are still being influenced by persistently tight conditions. The most significant improvements were in the detached sector, where benchmark prices surpassed $500,000 in July, up over 2% from the previous month and up 17% from last July.


Okotoks


While sales improved in July compared to last year, they had been going downward compared to earlier in the year. This is mainly due to further supply decreases. In July, 73 new listings were added to the market, keeping the sales-to-new-listings ratio at 96 percent and bringing supply down to 109 units. The market continues to favour the seller, with inventories at their lowest level since 2006 and less than two months' supply.


Prices are still being influenced by persistently tight market circumstances, as they are in other industries. The separate sector's price rise is mostly to blame. In July, detached home prices hit $511,800, about 1% higher than the previous month and more than 13% more than the previous year.


Source: CREB Media Release

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