Calgary may hit a record year for home sales, despite a dip in sales in October, according to the Calgary Real Estate Board (CREB). 1,857 homes traded hands last month, down 15% from last October, but year-to-date sales have reached 26,823, a 13% increase year-over-year. With just two months of the year left, it looks likely that sales numbers will break a record for the area.
Calling All Home Sellers: Prices in Calgary Still Steady
Some Canadian cities have seen major price and inventory declines the last few months as some buyers have chosen to wait out the interest rate hikes. For example, Toronto and the Greater Toronto Area experiened the lowest number of new listings reported for the month of September since 2022. Calgary, however, has remained relatively strong this fall. Residential home prices are currently at $523,900, just a 4% drop from May’s high points and still 9.6% higher year-over-year.
“Calgary hasn’t seen the same degree of pullback in housing sales like other parts of Canada, thanks to persistently strong demand for our higher density product,” said CREB Chief Economist Ann-Marie Lurie. “While our city is not immune to the impact that inflation and higher rates are having, strong employment growth, positive migration flows and a stronger commodity market are helping offset some of that impact.”
Lack Of New Supply Means Market Conditions Are Tightening
Although home prices remain steady, the city is experiencing a tightening of inventory. 2,175 new homes were listed on the market in October, down 17.1% from last month’s 2,625. This means that inventory is trending down to 3,887, a 12.7% decrease from last month. A lot of that decline has been driven by greater sales numbers in more affordable homes like apartment condos and row houses. As demand continues to grow for these more affordable property types, sellers have the upper hand, whereas the more expensive inventory sits in more balanced territory.
There are currently 2.61 months of inventory of condo apartments, the lowest number recorded for this home type since October 2013. Sales numbers of row houses are still consistent, with 320 this month compared to last month’s 327, but the lack of new supply means inventory is trending down by 20.1% month-over-month to 465, a substantial dip of 43% year-over-year.
Detached homes experienced some improvement in sales in the higher price ranges. However, the lack of sales in the lower ranges means sales eased by 29% year-over-year. Supply in the area is limited, with inventory at 1,946 units, nearly 35% lower than typical October numbers.
Inventory in Surrounding Cities is Being Hit the Hardest
Airdrie, Cochrane and Okotoks all continue to see tight conditions, but prices have remained relatively stable over the last month. Airdrie’s average price is currently $482,500, 0.6% lower than last month. Cochrane’s average home price is $507,000, while Okotoks is $537,800, both down 0.4%.
Inventory levels are low, lending to the tight conditions seen across Calgary. While Airdie’s months of supply have improved by 34.1% compared to last year, currently 1.47 months, this is still exceptionally low compared to the October average. Okotoks currently has only 1.55 months of supply with an inventory of just 73 properties, and a pullback in new listings (45 in October, down 33.8%).
If you’re considering buying or selling in Calgary or surrounding areas, download our free Buyer’s or Seller’s Guides and contact us today to connect with a local real estate agent.
