Supply levels improve taking some pressure off prices
With the busy spring market behind us, we are starting to see some shifts in supply levels. With 2,380 sales and 3,604 new listings, the sales-to-new listings ratio fell to 66%, supporting a gain in inventory. Inventories rose to 4,158 units, still 33% below what we typically see in July, but the first time they have pushed above 4,000 units in nearly two years. Although the majority of supply growth occurred for homes priced above $600,000, the rise has helped shift the market away from the extreme sellers’ market conditions experienced throughout the spring.
“While we are still dealing with supply challenges, especially for lower-priced homes, more options in both the new home and resale market have helped take some of the upward pressure off home prices this month,” said Ann-Marie Lurie, Chief Economist at CREB®. “This is in line with our expectations for the second half of the year, and should inventories continue to rise, we should start to see more balanced conditions and stability in home prices.”
July sales eased by 10% over last year's record high but were still higher than longterm trends for the month. Like last month, the pullback in sales has been driven by homes priced below $600,000. Nonetheless, the gain in inventory combined with slower sales caused the months of supply to rise to 1.8 months, still low enough to favour the seller but a significant improvement from the under one month reported earlier this year. Improved supply helped slow the pace of monthly price growth for each property type. In July, the total residential benchmark price was $606,700, similar to last month and nearly eight per cent higher than last year's levels.
City of Calgary Detached Homes (Single Family)
- Detached sales decreased by 8% compared to a year ago
- New listings increased by 8.4% compared to a year ago
- Inventory increased by 13% compared to a year ago
- Benchmark Price increased by 11% to $767,800 compared to a year ago
City of Calgary Semi-Detached Homes (Duplex)
- Semi-Detached sales decreased by 5.2% compared to a year ago
- New listings decreased by 5.6% compared to a year ago
- Inventory increased by 15% compared to a year ago
- Benchmark Price increased by 12% to $687,900 compared to a year ago
City of Calgary Row homes (townhouses)
- Townhouse sales decreased by 9.4% compared to a year ago
- New listings increased by 18% compared to a year ago
- Inventory increased by 37% compared to a year ago
- Benchmark Price increased by 15% to $464,200 compared to a year ago
City of Calgary Apartment Units
- Apartment unit sales decreased by 15% compared to a year ago
- New listings increased by 13% compared to a year ago
- Inventory increased by 23% compared to a year ago
- Benchmark Price increased by 17% to $346,300 compared to a year ago
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