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Market Report – May 2024

Market Update: Price Growth Continues Amidst Calgary’s Seller’s Market

Calgary’s housing market remains robust, with April sales rising by seven percent year-over-year to 2,881 units. Although the growth pace has slowed slightly, sales are still 37 percent above the long-term average for April, primarily driven by more affordable, higher-density housing options. The recent passing of the City of Calgary’s blanket rezoning bylaw has also spurred increased activity from builders, developers, and speculators.

April saw 3,491 new listings, an 11 percent increase from last year and three percent above the long-term average, helping to stabilize the inventory situation. However, the inventory level of 2,711 units is 16 percent lower than last year and half of the typical April levels. Interprovincial migration to Alberta and recent rent increases are pushing more Calgary residents towards homeownership, likely preventing a near-term increase in inventory levels.

“While supply levels are still declining, much of the decline has been driven by lower-priced homes,” said Ann-Marie Lurie, Chief Economist at CREB®. “Homes priced below $500,000 have seen a 29 percent decline in supply, whereas supply is growing for homes priced above $700,000. Persistently high-interest rates are pushing demand towards more affordable market segments while increasing listings for higher-priced properties.”

Representing both buyers and sellers across various price levels has highlighted this trend. Properties over $700,000 are taking longer to sell and are less competitive, even when priced at market value. Conversely, lower-priced properties are very active, often selling above list price within the first week on the market.

With a sales-to-new-listings ratio of 83 percent and less than one month of supply, conditions heavily favor sellers, driving further price increases. In April, the unadjusted total residential benchmark price rose to $603,700, marking a one percent gain from the previous month and nearly 10 percent higher than last year. Price increases were observed across all property types and districts, with the most substantial growth in more affordable areas.

Benchmark Pricing vs. Average Pricing

Benchmark pricing represents the value of a typical home in a specific market, calculated using a statistical model that accounts for consistent attributes, providing a stable view of market trends by eliminating volatility from extreme sales. In contrast, average pricing is the mean price of all homes sold in a given period, offering a snapshot of overall market conditions but susceptible to short-term fluctuations due to high or low outliers.

Market Summary

Detached Homes: Sales rose by 1% in April, driven by higher-priced homes, while listings for homes below $600,000 declined by 34%. Inventory remains low, favoring sellers, with the benchmark price reaching $749,000, up 13% from last year.

Semi-Detached Homes: Sales grew nearly 18% year-to-date, with tight inventory keeping supply below one month. The benchmark price increased to $668,400, up 13% from last year, with the highest gains in the East district.

Row Homes: Sales improved by 19% year-to-date, with a high sales-to-new-listings ratio of 93% and inventory below one month. The benchmark price rose to $458,100, up 20% from last year, with the most significant increases in the North East and East districts.

Apartment Condominiums: Sales reached 822 units in April, a 24% year-to-date increase, representing nearly 30% of all resale activity. Despite a rise in new listings, inventory remains low. The benchmark price hit $346,200, up 18% from last year, with the highest growth in the North East and East districts.

Regional Markets:

Airdrie: Tight supply with a sales-to-new-listings ratio of 92%. The benchmark price increased to $549,100, up over 10% from last year, with detached homes reaching $649,900.

Cochrane: Sales eased in April but are up 7% year-to-date. Inventory rose slightly, with the benchmark price at $561,000, up nearly 11% from last year.

Okotoks: Sales and listings increased, but inventory remains low. The benchmark price reached $617,200, up nearly 8% from last year, with the highest gains in semi-detached and row homes.

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