New listings are at their lowest since the ‘90s, with just 1,852 homes listed for sale in Calgary in January, according to the Calgary Regional Real Estate Board. A lot of the pullback in listings is being seen in lower priced properties – new listings for row houses were 20% lower than long term trends in January.
Growing Lending Rates Hitting Home Demand
Because of the higher cost of borrowing, homes in the higher price ranges are having trouble moving, meaning buyers are looking towards lower-priced properties to avoid these higher costs. The highest number of sales were seen in properties costing between $350,000 and $399,999, and $450,000 and $499,999, with total sales numbering 113 and 112 homes respectively.
There were also just 561 detached home sales in January, a 51% decrease from last year, the greatest decline across each housing type. A large drop in sales numbers across the board was expected with a much higher cost of borrowing, but it’s clear the greatest decline has been seen in what is generally the most expensive property type. Detached homes only made up 47% of total sales for the month, whereas last month this property type contributed to more than half the total sales for the region at 51.2%.
Home in Calgary For Sale
However, because of the greater number of buyers looking to buy in the lower price ranges, supply has fallen which is stunting growth in the lower ranges. There were only 1.51 months of supply for row houses, for example, and 278 new listings. CREB Chief Economist Ann-Marie Lurie said, “The higher rates are likely also preventing some move-up activity in the market impacting supply growth for lower- priced homes. This is causing differing conditions in the housing market based on price range.”
Low Inventory Continues to Negatively Affect Surrounding Areas
Airdrie, Cochrane, and Okotoks are all suffering from stock levels well below the long-term trend, currently checking in at 50% below, 40% below, and 61% down respectively. Okotoks has suffered the most out of these, with just 28 sales and 37 new listings in January, dampening any significant chance to impact those low inventory levels.
Home in Airdrie For Sale
Homes in Cochrane For Sale
Homes in Okotoks For Sale
Calgary’s home price is holding steady. The price has risen ever so slightly from December by 0.4%, to $520,900, but has been in and around the same region for pricing for a few months now – in November the price was $523,900. Because of the trends in different price markets, price declines in more expensive areas while outlying areas have seen smaller increases. In Okotoks, the price has gone from $525,200 to $539,000, a 2.6% increase, while Chestermere has seen a 2.4% increase from $600,300 to $614,800.
Homes in Chestermere For Sale
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