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Market Report – March 2024

Despite Calgary experiencing a cold spell in February, our Real Estate Market heated up significantly! While new listings began appearing, they were met with equal or greater buyer demand. February saw sales surge nearly 25 percent year over year, largely due to the influx of new inventory. However, inventories have remained at near-historical lows as we move into what promises to be a frenzied spring market in Calgary and its surrounding communities. Currently, our months of supply sit at just over one month, and the average days on market have dropped to under 30 days, both experiencing a significant 30 percent decrease.

Purchasers are acting quickly when new supply comes onto the market, preventing inventory growth in the market,” said Ann-Marie Lurie, Chief Economist at CREB®. “It is this strong demand and low supply that continues to drive price gains in Calgary. The biggest supply challenge is for homes priced under $500,000, which saw inventories fall by 31 per cent compared to last February. At the same time, we are starting to see supply levels rise for higher priced homes supporting more balanced conditions in the upper end.

In February, the unadjusted benchmark price rose to $585,000, marking a gain of over two percent compared to the previous month and a surge of over 10 percent from the levels reported a year ago. Similarly, in the detached product category, the unadjusted benchmark price sits at $721,000. The significant news lies in our East district, where year-over-year price growth reached an impressive 25 percent.

We anticipate continued competition for buyers in the upcoming months, although more inventory is expected to enter the market. It’s crucial to ensure you have a solid pre-approval and strategic plan in place to compete in property bidding. In such a market, it’s likely you’ll need to make multiple offers before securing a property.

For sellers, it remains essential to present your home and yard in the best possible light. While there may be temptation to set an aggressive market entry price, I would advise sellers to aim for listing as close to market value as possible and let the open market dynamics play out. Often, multiple offer scenarios drive up the final offer price and yield the best results in terms of price and offer quality. The challenge for sellers is whether to sell before buying or vice versa, a decision that warrants a detailed discussion with your real estate advisor.

Here is quick recap of the CREB February market report for the different product types and market areas:

Detached:

  • 1,195 new listings in February, with 75% priced over $600,000.
  • Sales rose to 954 units, a 20% year-over-year gain, maintaining a high sales-to-new listings ratio of 80%.
  • Unadjusted benchmark price rose to $721,300, almost 3% higher than last month and over 13% higher than last February.

Semi-Detached:

  • 223 new listings in February, met with 191 sales, resulting in a sales-to-new-listings ratio of 86%.
  • Unadjusted benchmark price reached $639,100, a monthly gain of over 2% and a 13% increase from last year.

Row:

  • New listings rose to 457 units, contributing to a 22% year-to-date increase.
  • Unadjusted benchmark price reached $436,500, over 2% higher than last month and nearly 19% higher than last February.

Apartment Condominium:

  • Sales reached 638 units in February, with a year-to-date sales increase of 39%.
  • Unadjusted benchmark price reached $329,600, a 17% gain over last February.

Regional Market Facts:

  • Airdrie: 182 new listings and 135 sales, with inventory levels half of typical February levels. Unadjusted benchmark price reached $529,700.
  • Cochrane: 105 new listings and 65 sales, with a sales-to-new listings ratio of 62%. Unadjusted benchmark price reached $548,300.
  • Okotoks: Stable inventory levels, with the unadjusted benchmark price reaching $605,500.
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