Supply Levels Improving for Higher-Priced Homes
As we move further into the fourth quarter of 2024, Calgary’s real estate market is showing signs of balance, particularly in higher price ranges. October sales reached 2,174—24% above long-term trends for the month—demonstrating that demand remains robust despite a notable divide between price segments. Sales for properties over $600,000 increased, offsetting declines in the lower end of the market and resulting in sales levels similar to last year.
“Housing demand has stayed relatively strong in our market as we move into the fourth quarter, with October sales rising over last month,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, activity would likely have been stronger if more supply choices existed for lower-priced homes.” Though overall inventory levels are improving from last year’s near-record lows, most of these gains have been concentrated in higher-priced properties. This dynamic has resulted in more balanced conditions in the higher-end market, while the lower and mid-price ranges remain seller-dominant.
The steady rise in new listings over the past six months has bolstered inventory levels across Calgary, bringing October’s active listings to 4,966 units—a significant improvement from last October’s near-record low of 3,205 units. However, almost half of today’s inventory is priced above $600,000, emphasizing the limited options available for buyers seeking lower-priced properties.
Although improving supply is helping ease the tight conditions experienced earlier in the year, the market remains relatively competitive with a sales-to-new listings ratio of 67% and an overall months-of-supply level at 2.3. The availability of homes varies substantially by price and property type: detached homes under $700,000 have less than two months of supply, while properties over $1,000,000 report over three months of supply, creating unique price pressures across segments.
The overall residential benchmark price in Calgary was $592,500 in October, marking a year-over-year increase of over 4%. Year-to-date, prices have averaged over 8% higher than last year, underscoring the market’s strength despite easing conditions. While unadjusted prices dipped slightly from September due to seasonal trends, seasonally adjusted prices remained steady from month to month.
What Does This Mean for Buyers and Sellers?
For buyers, especially those considering higher-priced homes, the increased inventory provides more options, with slightly less competitive conditions at the upper end of the market. Buyers in the lower-priced ranges, however, should remain prepared for competitive bidding, as the market continues to favor sellers in that segment.
For sellers, especially those with mid-to-lower-priced properties, demand remains high, and with limited supply, pricing can still be competitive. Sellers in the upper price ranges may need to adjust expectations, as more balanced conditions provide buyers with greater choice and negotiation power.
Ready to Make Your Move?
Whether you’re looking to buy or sell in Calgary, the current market dynamics offer unique opportunities for both sides. As an experienced Calgary real estate professional, I can help you navigate these shifting conditions and make informed decisions based on your needs. Contact me today for personalized advice on buying or selling in Calgary’s evolving real estate market!