Calgary housing market sees shifts
The Calgary real estate market continues to adjust from the extreme seller’s market we saw earlier this spring. According to the Calgary Real Estate Board (CREB®), August brought a noticeable shift as sales activity slowed and inventory levels began to rise. For the first time since 2022, the months of supply climbed above two months, signalling a move toward better supply in the housing market.
Chief Economist at CREB®, Ann-Marie Lurie, notes that this trend of rising new home construction and gains in new listings is likely to continue through the rest of the year. However, supply remains tight for lower-priced properties, meaning it will take more time before we see a fully balanced market.
In August, inventory levels reached 4,487 units, a significant 37% increase compared to the same month last year. This increase was primarily driven by higher-priced properties, while more affordable homes saw continued declines in supply. Even with this improvement, overall inventory remains 25% below long-term averages, highlighting ongoing demand.
On the sales side, there were 2,186 transactions in August, which represents a 20% decline from the record highs set last year. However, sales remain strong, sitting 17% above long-term averages for this time of year. The slowdown in sales was most pronounced for homes priced under $600,000, suggesting affordability remains a challenge for many buyers.
In terms of pricing, Calgary’s housing market remains resilient. The unadjusted residential benchmark price in August was $601,800, up 6% from the same time last year. Though price growth has slowed compared to the rapid increases we saw earlier in 2024, year-to-date prices are still up by an impressive 9%.
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What Does This Mean for Buyers and Sellers?
For sellers with higher-priced homes the inventory levels have increased which is giving buyers more options. On the other hand, if you’re selling a more affordable property, competition remains since demand continues to exceed the available supply in that price range.
For buyers, while sales activity is down from last year’s highs, the Calgary market remains competitive, particularly in lower price brackets. Inventory gains, however, offer more choices for those exploring higher-priced properties. With price growth beginning to slow, now could be a good time to act before prices increase further.
Take Action Today!
Whether you’re considering buying or selling in Calgary, the market is in a unique position. With changes in inventory and pricing trends, it’s more important than ever to stay informed and act strategically. As an experienced Calgary real estate professional, I can help guide you through these market shifts and help you make the best decisions for your real estate needs.
Contact me today for personalized advice and to explore the best opportunities available in the Calgary market!