Market Update: Supply Levels Up with a Boost in New Listings
After three years of tight inventory at the start of the year, January saw a significant increase in supply, with 3,639 units on the market—closer to historical averages for this time of year. Supply increased across all property types, with the most notable gains in apartment-style condominiums, which now have 3.5 months of supply and are approaching balanced market conditions.
“Supply levels are expected to improve this year, contributing to more balanced conditions and slower price growth,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, the adjustment in supply is not equal amongst all property types. Compared with sales, we continue to see persistently tight conditions for detached, semi-detached and row properties while apartment condominiums show signs of excess supply for higher-priced units.”
Citywide, months of supply reached 2.5 months in January—up from just one month last year—though still considered low for a winter market. Semi-detached properties remained under two months of supply, indicating a slight seller’s market. However, stale listings may need to adjust pricing to meet market expectations rather than relying on further appreciation.
What Is Months of Supply and Why Does It Matter?
Months of supply is a key metric used to gauge market conditions. It represents the number of months it would take to sell all available inventory at the current sales pace, assuming no new listings come to market. A lower months-of-supply figure (typically under three months) indicates a seller’s market, while a higher figure (closer to five or six months) suggests more balanced conditions. As supply increases, buyers tend to have more negotiating power, and price growth typically slows.
The impact of pending tariffs remains uncertain, with some concern among those whose jobs may be affected. However, expectations of continued interest rate cuts as we move into 2025 should help spur market activity, particularly heading into the spring. While much of the current inventory consists of older listings, well-priced new listings are drawing strong interest and moving quickly.
Despite a 12% decline in sales year-over-year, January remained an active month—outpacing historical trends. The boost in new listings, combined with easing interest rates, has likely set the stage for an early start to the spring market in Calgary and surrounding areas.
The total residential benchmark price in January was $583,000, holding steady from late 2023 and reflecting a 3% increase from January last year. While price trends varied by district and property type, the rapid growth seen in early 2024 leveled off by Q3 and dipped into early Q4, suggesting prices are stabilizing year over year.
Market Update Summary
Detached
- New listings increased by 29% YoY to 1,228 units, primarily in homes over $600K.
- Sales slowed to 674 units, aligning with long-term trends.
- Inventory increased to 1,448 units, still 27% below typical January levels.
- Months of supply: Just over 2 months, remaining low.
- More balanced conditions emerging in the City Centre and North East districts.
- Benchmark price: $750,800, up 7% YoY, stable since mid-2023.
Semi-Detached
- New listings outpaced sales, leading to higher inventory levels.
- Sales improved over last year, keeping months of supply just below 2 months.
- Variations across the city:
- City Centre, North East, and West: Near or above 3 months of supply.
- Other districts: Less than 2 months of supply.
- Benchmark price: $673,600, down slightly from last month, but 8% higher YoY.
- Districts with higher supply saw modest monthly price declines, while others remained stable or increased.
Row
- New listings increased, pushing inventory to 589 units, more than double last year’s low levels.
- Inventory levels are now in line with long-term trends.
- Months of supply: Above 2 months, continuing a trend from late 2023.
- Price pressure easing in some areas:
- Benchmark price: $444,900, slightly down from last month but 5% higher YoY.
- North East district saw the largest monthly price adjustment.
Apartment Condominium
- Sales slowed to 370 units from last year’s record January high.
- New listings reached a record 922 units for January.
- Inventory rose to 1,295 units, pushing months of supply to 3.5 months.
- Prices softened due to higher supply:
- Benchmark price: $331,400, down slightly from last month but 5% higher YoY.
- Largest monthly declines in North, West, and South districts.
Regional Market Facts
Airdrie
- Sales remained steady, aligning with last month and last year.
- Inventory levels increased, keeping months of supply at 2.6 months for the fifth straight month.
- More resale and new home supply eased price pressure.
- Benchmark price: $537,300, down from last month but 4% higher YoY.
Cochrane
- New listings increased to 104, while sales were 71.
- Inventory rose to 156 units, higher than recent years but below long-term trends.
- Months of supply stayed above 2 months, easing price growth.
- Benchmark price: $565,900, down from last month but 5% higher YoY.
Okotoks
- New listings remained low, unlike Airdrie and Cochrane.
- Inventory improved slightly but remains at half pre-pandemic levels.
- Limited supply continues to drive price increases.
- Benchmark price: $614,900, slightly up from last month and 5% higher YoY.
