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Market Report – June 2024

Strong Home Sales Despite Inventory Shortages

Last month experienced a slight year-over-year decline in sales, primarily due to limited inventory. However, home sales exceeded 3,000 listings, which is still very robust and nearly 35% higher than long-term averages for May.

“Although new listings have increased, much of this growth is in higher price ranges for each property type,” said Ann-Marie Lurie, Chief Economist at CREB®. “Our strong economic situation has supported sales growth in these higher price ranges. However, this month’s sales could not offset the declines in the lower price ranges due to a lack of supply choice.”

On a positive note, the market saw nearly a 20% increase in new listings compared to this time last year. Despite this increase, demand remains high, resulting in inventory levels being less than half of what is typical for this time of year. While properties in the lower price points have seen significant appreciation over the first five months of 2024, this trend appears to be slowing. Conversely, homes priced above $700K are now experiencing increased activity and appreciation.

Overall, the city witnessed another month of price growth across all areas. The total unadjusted benchmark price in May reached $605,300, which is 1% higher than the previous month and 10% higher than a year ago. Homes listed at market-appropriate prices are moving quickly, often attracting multiple offers. It remains a highly competitive market for buyers, who must be well-prepared and avoid searching at the top of their budget to leave room for competitive bidding. Many properties are still being sold without conditions.

We expect market conditions to continue favoring sellers, with more modest gains anticipated throughout the rest of 2024.

May 2024 – Market Report Summary

Detached Homes

  • Sales for homes over $700,000 rose but didn’t offset declines in lower price ranges; overall sales down 7% year-over-year.
  • New listings increased, lowering the sales-to-new-listings ratio to 68%, supporting inventory growth.
  • Inventory for homes under $600,000 fell to 13% of the market.
  • Market favours sellers with just over one month of supply; benchmark price at $761,800, up 1% from last month and 13% year-over-year.

Semi-Detached Homes

  • Year-to-date sales up nearly 11% despite a year-over-year decline in May.
  • Increased new listings dropped the sales-to-new-listings ratio to 72%, boosting inventory.
  • Seller-favourable market with one month of supply; benchmark price at $678,000, up 1% from last month and 13% year-over-year.

Row Homes

  • May sales at 540, contributing to a 16% year-to-date rise.
  • New listings rose, increasing inventory levels despite declines for properties below $400,000.
  • Seller-favourable conditions with a sales-to-new-listings ratio of 78% and less than one month of supply; benchmark price at $462,500, up 2% from last month and 19% year-over-year.

Apartment Condominiums

  • Demand driven by affordable homes; May sales contributed to a 19% year-to-date increase.
  • New listings rose, maintaining inventory levels similar to last year, with higher-priced homes compensating for declines in lower-priced homes.
  • Seller-favourable market with just over one month of supply; significant price gains in North East and East districts, up over 30% year-over-year.

Regional Market Facts

Airdrie

  • Increased new listings supported inventory gains, though levels are still half the typical May inventory.
  • Detached homes comprise 70% of inventory, with half priced below $700,000.
  • Benchmark prices continue to rise, ranging from $289,000 for apartments to $651,000 for detached homes.

Cochrane

  • 132 new listings nearly matched by 130 sales, keeping the sales-to-new-listings ratio at 98% and reducing inventories.
  • Tight market conditions driving price growth; residential benchmark price up 1% from last month and 10% year-over-year.
  • Significant price growth for apartments at $304,900; detached home prices at $667,700.

Okotoks

  • Exceptionally low inventory levels, 55% below typical May levels.
  • 100 new listings in May met with 75 sales, keeping the sales-to-new-listings ratio at 75%.
  • Seller-favourable market with one month of supply; benchmark prices up 1% from last month and 8% year-over-year.
  • Prices range from $262,500 for apartments to $699,600 for detached homes.
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