The Calgary real estate market experienced a notable shift in September, with total sales reaching 2,003 units. While this figure marks a 17 percent decrease from last year's record high, it's worth noting that it remains over 16 percent higher than the typical sales figures for this time of year. Rising activity in the upper price ranges hasn't quite been enough to offset a pullback in the lower price segments.
Ann-Marie Lurie, Chief Economist at CREB®, shared her insights: “We are starting to see a rise in new listings in our market. However, most of the listing growth is occurring in the higher price ranges. While demand has stayed strong across all price ranges, the limited choice for lower-priced homes has likely prevented stronger sales in our market. While the challenges in the lower price ranges are not expected to change, improved supply combined with lower lending rates should keep demand strong throughout the fall, but without the extreme seller market conditions that contributed to the rapid price growth earlier this year.”
New Listings and Inventory
September saw new listings surge to 3,687 units, marking the highest total for the month since 2008. This increase has contributed to a boost in inventory levels, which reached 5,064 units—nearly double the exceptionally low spring figures but still below the typical 6,000 units we expect to see in September.
As inventory continues to improve, the market is gradually shifting toward more balanced conditions. The months of supply in September climbed to 2.5 months, a positive shift from last year’s record low, though the market still leans in favor of sellers.
Impact on Home Prices
The added supply has alleviated some of the upward pressure on home prices observed in previous months. In September, the unadjusted benchmark price stood at $596,900, slightly lower than the previous month but over five percent higher than last year. Year-over-year gains varied widely, with detached homes seeing nearly nine percent growth and apartment condominiums experiencing close to 14 percent increases. These gains have outpaced the overall growth in residential prices, primarily due to the changing composition of sales.
Looking Ahead
As we move into fall, the real estate market in Calgary remains dynamic. With improved supply and lower lending rates, we can expect continued strong demand. However, the challenges in the lower price ranges are likely to persist. Keep an eye on the market as we navigate these evolving conditions!
