Calgary is in the midst of contrasting fortunes. July has been the strongest month ever since records began in terms of sales, but inventory levels are trending near the record low set in July 2006, according to the Calgary Real Estate Board.
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Rate Hikes Not Hampering Calgary’s Increasingly Popular Market
Despite the Bank of Canada raising interest rates twice this summer, Calgary’s affordable market has been unafflicted. Buyers are still feeling confident which is reflected in the city’s strong sales figures. 2,647 homes traded hands in July, an 18% improvement year-over-year. The sales bump has been driven by the increasing popularity of the condo market, with 722 sales in July, representing a 50% improvement compared to last year.
- Read: Soaring Canadian Home Sales: The Cities Where the Number of Sales Have More Than Tripled This Year
However, inventory levels continue to struggle, now at their lowest in 17 years. There were just 3,488 homes on the market at the end of July, a 34.8% drop year-over-year. With just 1.3 months of supply, 45% lower than last year, conditions in Calgary continue to favour the seller.
With so few homes to go around and so much interest in one of Canada’s more affordable, high-profile markets, the benchmark home price continues to rise. Now at $567,700, it has increased 6% year-over-year, with a moderate increase of 0.5% from June. The home price continued to rise throughout the year, and with the city’s popularity increasing and supply extraordinarily low, it’s likely it will continue to escalate for the foreseeable future.
Regional Markets are Also Suffering From Low Inventory Numbers
Regional markets in Calgary are all in similar circumstances – the city’s increased popularity means prices are on the rise, while inventory remains low. Cochrane is the only regional market where inventory numbers are up year-over-year, with a 4.7% increase to 156 available homes. On a monthly basis, however, numbers are more encouraging, as inventory has improved in each of Airdrie, Cochrane and Okotoks. Airdrie’s had the greatest improvement, with 7.3% more homes available in July than in June.
- Read: Renting vs. Buying: Where Monthly Mortgage Payments are Comparable to Monthly Rent Across Canada
Despite slight inventory improvements, conditions do still remain remarkably tight, putting upward pressure on home prices. The average price in Cochrane is now $529,700, an increase of 3.5% year-over-year, while in Okotoks the average home price has hit $586,900, up 7.3%. In Airdrie, the average price hit $514,100, up 4.4% year-over-year, but additionally, the detached benchmark home price in the region has breached the $600,000 mark for the first time.
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