Real Estate Sellers Benefit as Calgary Inventory Hits Record March Low

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Inventory in Calgary is at its lowest in 17 years, according to the Calgary Real Estate Board. There were 3,233 homes available for sale at the end of March, the lowest figures for the month since 2006.

Low Stock Indicates a Great Opportunity for Prospective Sellers

Sellers are reaping the benefits of the incredibly low inventory. There are currently just 1.33 months of supply in Calgary. Lower supply means greater competition which is driving home prices upwards. The average home price has grown by just over 2% from February to $541,800, but more interesting to note is that the price is higher than it was this time last year by over one percent, when interest rates were at their lowest. The record home price in Calgary was set in May last year at $546,000, so if the tight conditions continue it could set a new record in the near future.

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Despite the year-over-year decline, there has been an improvement in new listings from February, with a 38.9% increase to 3,318. Sales have increased by 39.7%, contributing towards both the declining inventory and the increase in prices. Calgary is still one of Canada’s more affordable markets, with the average price well below Canada’s benchmark of $703,400. Migration to the area has supported much of the current demand.

Surrounding Communities are Feeling the Effects of the Inventory Strain

Local markets are feeling the strain of supply, with Okotoks and Airdrie suffering the most. Okotoks had only 61 homes for sale at the end of March, among the lowest levels ever recorded for the month. Airdrie’s stock of 206 is the area’s lowest March figure since 2014. Cochrane is a bit of an outlier, however, with much greater supply than last year’s low levels, with 155 homes available, an increase of 78.2%.

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Month-over-month, sales and home prices have improved in each community. Airdrie had 154 home sales, up 54% from February, while Cochrane and Okotoks had 87 and 55 sales respectively, up by 58.2% and 22.2%. Cochrane’s price is now $501,900, up 1.8%. Okotoks’ price has improved by 1.1% to $561,600, while Airdrie has had the greatest increase, up 2.1% to $497,500.