July Real Estate Market Update:
The story of July – Supply levels improve, taking some pressure off prices.
What’s driving the recent shift in the market? One key factor is that our real estate market appears to be returning to its usual seasonal patterns, something we haven’t seen much of since COVID disrupted our local market. With the busy spring season behind us, supply levels are starting to climb, and we’re approaching two months of inventory. While this is still a seller’s market, the increased supply has eased price pressures, allowing buyers to approach their home search at a more relaxed pace. We’re seeing fewer multiple offers, and new listings are staying on the market longer, often more than what was previously just a day or two.
Looking at the numbers, there were 2,380 sales and 3,604 new listings in July, bringing the sales-to-new listings ratio down to 66%, which has contributed to a gain in inventory. Inventories rose to 4,158 units—still 33% below typical July levels—but this is the first time in nearly two years that they’ve surpassed 4,000 units. Most of the inventory growth has been in homes priced above $600,000, which has helped the market shift away from the extreme seller’s conditions we saw in the spring. July sales decreased by 10% compared to last year’s record high but remained above the long-term trends for the month. The slowdown in sales has been most noticeable in homes priced below $600,000. The improved supply has slowed the pace of price growth, with the total residential benchmark price in July at $606,700, remaining virtually unchanged from the previous month.
“While we are still dealing with supply challenges, especially for lower-priced homes, more options in both the new home and resale markets have helped take some of the upward pressure off home prices this month,” said Ann-Marie Lurie, Chief Economist at CREB®. “This is in line with our expectations for the second half of the year, and should inventories continue to rise, we should start to see more balanced conditions and stability in home prices.”
As we move further into the year, we may see more interest rate cuts, combined with realtors and buyers wrapping up their summer vacations, leading to a vibrant and active fall market. I anticipate a couple of busy months ahead, followed by a slowdown as we approach year-end. Whether inventory will continue to rise is uncertain, but if it does, we could see more balanced market conditions by the end of the year.
Calgary Market Facts
Detached Homes
- July sales fell by 8%, with a 15% increase in homes priced above $600,000 not offsetting a 50% decline in lower-priced homes.
- The decline in lower price ranges reflects limited availability due to falling inventories and new listings.
- Year-to-date detached sales eased by just over 1% compared to last year.
- 1,098 sales and 1,721 new listings in July, with inventories rising to 1,950 units.
- Inventories are still low historically, but months of supply increased to nearly 2 months.
- July’s unadjusted benchmark price: $767,800, up 11% year-over-year.
Semi-Detached Homes
- Relative affordability continues to attract buyers; year-to-date sales are 1,518 units, up 6% from last year.
- Sales slowed slightly compared to last year, but gains in new listings helped.
- Sales-to-new listings ratio: 76%, with 1.5 months of supply.
- July’s unadjusted benchmark price: $687,900, up nearly 12% year-over-year.
- Highest price growth in North East and East districts.
Row Homes
- New listings increased, leading to a sales-to-new listings ratio of 73%.
- Inventory levels and months of supply rose to 1.3 months.
- Market still favors sellers, but monthly price gains slowed.
- July’s benchmark price: $464,200, up nearly 15% year-over-year.
- Year-over-year price gains range from 13% in City Centre and North to over 20% in North East and East districts.
Apartment Condominiums
- July sales slowed to 659 units, with a significant drop for properties priced below $300,000.
- Limited supply in lower-priced units hindered stronger sales activity.
- New listings in July: 1,043 units, leading to a sales-to-new listings ratio of 63%.
- Inventory gains and months of supply exceeded 2 months.
- July’s unadjusted benchmark price: $346,300, up 17% year-over-year.
Regional Market Facts
Airdrie
- New listings in July reached a record high of 287 units.
- Sales slowed to 186 units, supporting inventory gains.
- Inventory at 298 units is 26% below typical July levels.
- Inventory gains across most price ranges, but conditions remain tight, especially in lower price ranges.
- July’s unadjusted benchmark price: $553,900, up 8% year-over-year.
Cochrane
- July sales improved, leading to a year-to-date gain of nearly 8%.
- New listings also increased but didn’t significantly shift low inventory levels.
- Sales-to-new listings ratio: 83%, with 1.5 months of supply.
- July’s unadjusted benchmark price: $576,600, up 9% year-over-year.
Okotoks
- Sales pulled back relative to new listings, supporting inventory gains.
- Inventory levels are 25% higher than last year but still exceptionally low at 85 units.
- Sales-to-new listings ratio: 78%, with 1.3 months of supply.
- July’s unadjusted benchmark price: $622,200, up over 6% year-over-year.
