As realtors, we notice market shifts in real-time, but it often takes a while for the media, the general public, and even prospective buyers and sellers to catch on. This current shift began back in mid-June and carried through the summer. For buyers, this means a potentially more relaxed pace in the fall, with less pressure and reactivity than we’ve seen in previous months. However, it’s still important to stay prepared, as attractive properties are continuing to move quickly. Be sure to keep an eye on new listings and be ready to act when the right opportunity comes up.
For sellers, the advice this fall is to adjust expectations from earlier this year. The time to aim high with your initial asking price has passed. Instead, focus on recent sold comparables and your current competition when pricing your property. Average days on market have increased, so don’t panic if your home doesn’t sell in the first week or weekend. While we’ve moved away from the extremely tight market conditions we saw in the spring, an active fall market is still expected. Buyers are returning to their searches, interest rates are falling, and prices are stabilizing, creating what should be a healthy market for the remainder of 2024.
“As expected, rising new home construction and gains in new listings are starting to support a better-supplied housing market,” said Ann-Marie Lurie, Chief Economist at CREB®. “This trend is expected to continue throughout the remainder of the year, but it’s important to note that supply levels remain low, especially for lower-priced properties. It will take time for supply levels to return to those that support more balanced conditions.”
Currently, inventory levels are almost 40% higher than this time last year, but still 25% lower than long-term trends. With just over two months of inventory, Calgary and the surrounding areas remain in a seller’s market. Notably, the higher-priced homes are the segment that saw the biggest increase in inventory, while affordable properties are still in high demand and low supply. So, what’s driving the increased inventory? In August, we saw a continued influx of new listings, but a pullback in sales activity as people enjoyed the summer months. This points to a return to more historically seasonal market patterns.
After stronger-than-expected gains earlier in the year, price growth is beginning to slow. In August, the unadjusted residential benchmark price reached $601,800, up six percent from last year and only slightly lower than July. Year-to-date, the average benchmark price has risen by nine percent.
Calgary Market Summary:
Detached Homes
- Sales fell by 14% compared to last year.
- Gains in homes priced above $600,000 were not enough to offset declines in lower price ranges.
- 2,011 detached homes in inventory, with 85% priced above $600,000.
- Months of supply rose to nearly two months, easing tight market conditions.
- Benchmark price: $762,600 (slightly lower than last month, but 9% higher than last year).
Semi-Detached Homes
- 297 new listings, 172 sales in August.
- Sales-to-new-listings ratio dropped to 58%, aligning with pre-pandemic levels.
- Inventory levels rose, with months of supply nearing two months.
- Benchmark price: $681,200 (down from last month, up nearly 10% from last year).
Row Homes
- New listings increased for homes priced above $400,000, leading to 16% year-to-date growth.
- Slower sales over the past three months contributed to inventory gains.
- 660 units available in August, a 75% increase from last year.
- Benchmark price: $461,700 (slightly lower than last month, 12% higher than last year).
- Price adjustments varied across districts, with year-over-year increases across all areas.
Apartment Condominiums
- 1,001 new listings, a record for August.
- Sales-to-new-listings ratio dropped to 60%, and inventory rose to 1,476 units.
- Months of supply increased to nearly 2.5 months.
- Benchmark price: $346,500 (similar to last month, 16% higher than last year).
Regional Market Facts
Airdrie
- 242 new listings, 172 sales, with a 71% sales-to-new-listings ratio.
- Months of supply remained below two months.
- Benchmark price: $553,300 (similar to last month, 8% higher than last year).
Cochrane
- 81 sales, 109 new listings, with a 74% sales-to-new-listings ratio.
- Inventory levels 42% below long-term trends.
- Benchmark price: $578,600 (slightly higher than last month, 8% higher than last year).
Okotoks
- 67 sales, 84 new listings, with an 80% sales-to-new-listings ratio.
- Inventory levels 47% below long-term trends, with just over one month of supply.
- Benchmark price: $622,700 (similar to last month, 7% higher than last year).
