Here’s your Calgary real estate market report for October 2024:
October saw strong sales in homes priced above $600,000, which offset declines in the lower price brackets. This shift may reflect “move-up” buyers re-entering the market, leveraging increased equity and adapting to higher interest rates. With over 2,100 sales in October, activity rose from the previous month. As inventory levels continue to increase, it’s important to consider long-term trends, since year-over-year comparisons remain skewed by last year’s record-low inventory levels. Notably, nearly half of active residential listings are now priced above $600,000.
“Housing demand has stayed relatively strong in our market as we move into the fourth quarter, with October sales rising over last month,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, activity would likely have been stronger if more supply choices existed for lower-priced homes. Supply levels in our market are improving relative to the ultra-low levels experienced last year, but much of the gains have been driven by higher-priced units for each property type. This results in conditions far more balanced in the upper end of the market versus the seller’s market conditions in the lower to mid-price ranges of each property type.”
With supply adjusting, the market is moving away from the tight conditions of earlier this year. Sellers are needing to be more strategic in pricing, leading to some price reductions where initial prices may have been overly optimistic. For buyers, this shift provides a chance to be more selective; however, competition remains strong for well-priced, move-in-ready properties, especially in areas with limited inventory. Detached properties in the low-to-mid price ranges currently have around two months of supply, while those priced over $1 million show closer to three months.
The October benchmark price for total residential properties was $592,500, reflecting a year-over-year increase of over four percent. With nearly half of the inventory now priced above the benchmark, the higher price segment has also seen an uptick in activity.
The recent 50-basis-point reduction in the Bank of Canada’s overnight rate seems to have lifted buyer confidence, though some buyers are still cautious, hoping for improved mortgage qualification rates. If you’re in the market, it may be wise to discuss variable rate options with your lender or broker, with the possibility of locking in mid-next year if rates stabilize. For sellers, serious buyers are still active, and while your listing may not attract as much attention as it might have earlier in 2024, it can still generate quality offers. Plus, increased inventory may provide you with better options for your next property.
Market Report Summary for October 2024
By Product Type
- Detached Homes
- Sales: 1,071, up from last month and nearly 10% higher than last year.
- Inventory: 2,199 units, approximately two months of supply, steady from last month.
- Price: Benchmark at $753,900, slightly lower than last month but 8% higher than last October.
- Notes: Increased higher-price listings have stabilized prices, with seasonal trends causing minor monthly declines.
- Semi-Detached Homes
- Sales: Rose over last month, up 6% year-over-year.
- Inventory: Steady gains in inventory, around two months of supply, favouring sellers.
- Price: Benchmark at $677,000, flat month-over-month, up 8% year-over-year.
- Notes: Market conditions are balancing due to higher-priced inventory growth.
- Row Homes
- Sales: Slowed since June, mostly due to limited supply for homes under $400,000.
- Inventory: Above two months, easing pressure on prices.
- Price: Benchmark at $456,600, over 8% higher than last year, with year-to-date prices up nearly 16%.
- Notes: Demand remains strong in the higher price ranges, with over 70% of sales above $400,000.
- Apartment Condominiums
- Sales: Improved over last month but show a year-over-year decline for five consecutive months.
- Inventory: Increased in the $300,000 – $500,000 range, providing more balanced conditions.
- Price: Benchmark at $341,700, down slightly from last month but 11% higher than last year.
- Notes: High demand continues, especially for affordable units, although price pressure is easing with additional supply.
By Region
- Airdrie
- Sales-to-New-Listings Ratio: 67%, moderating inventory growth.
- Inventory: 365 units, up significantly from 213 last year.
- Price: Benchmark down month-over-month due to seasonal factors but still up 5% year-over-year.
- Notes: Market is moving towards balance, reducing pressure on prices.
- Cochrane
- Sales: Higher than last year, with record-high October new listings.
- Inventory: 178 units, below long-term trends, with 2.3 months of supply.
- Price: Benchmark slightly lower month-over-month, up 6% year-over-year.
- Notes: Inventory growth is slowing price gains, keeping conditions steady.
- Okotoks
- Sales: Improved year-over-year, aided by recent new listing gains.
- Inventory: 103 units, up from 66 last year, under two months of supply.
- Price: Benchmark slightly eased month-over-month but 6% higher year-over-year.
- Notes: Persistent seller’s market continues to drive annual price growth.
