Supply on the Rise, but Not Across All Price Ranges
As we transition into winter, Calgary’s housing market is slowing down in line with typical seasonal trends. However, demand remains relatively strong compared to historical averages. In November, sales activity in detached, semi-detached, and row homes helped offset a decline in apartment condominium sales. The 1,797 sales recorded in November matched last year’s levels and stood 20% above long-term averages for the month.
The most notable shift in the market is in supply. Inventory levels rose to 4,352 units in November, a significant improvement from the 3,000 units reported during the same period last year. Despite this increase, inventory levels remain below long-term trends, highlighting the ongoing challenges in meeting demand across all segments.
“Housing supply has been a challenge over the past several years due to the sudden rise in population,” said Ann-Marie Lurie, Chief Economist at CREB®. “Rising new home construction has bolstered supply in rental, new home, and resale markets. However, supply improvements vary significantly by location, price range, and property type.”
Balanced Conditions Emerging in Some Segments
The months of supply in Calgary rose to just over two months in November, marking a shift away from the ultra-tight conditions experienced earlier this year and in previous Novembers, where supply hovered below two months. While this trend indicates a move toward more balanced conditions, many segments—particularly lower-priced homes—continue to favor sellers.
Pricing Trends Reflect Market Shifts
Improved supply options have helped moderate the pace of price growth. Year-over-year price increases ranged from 7% for row homes to 9% for apartment-style units, driven by strong demand for more affordable housing options. The total residential benchmark price in November reached $587,900, reflecting a modest year-over-year increase of just under 4%.
Seasonally adjusted prices have remained stable over the past four months, while unadjusted prices followed typical seasonal patterns, trending slightly downward. This stability reflects a shift toward affordability, with row and apartment-style homes playing a larger role in sales activity.
What Does This Mean for Buyers and Sellers?
For buyers, the rise in inventory provides more opportunities, particularly in higher price ranges. However, competition remains strong in the lower price segments, where supply is still constrained. Acting quickly and working with an experienced professional can help you secure the right property in this competitive market.
For sellers, especially those with lower-priced homes, demand remains high, and the market still favors you. Sellers in higher price ranges may find conditions more balanced, requiring strategic pricing to attract buyers.
Ready to Navigate Calgary’s Real Estate Market?
Whether you’re looking to buy or sell, Calgary’s real estate market continues to evolve, offering unique opportunities for both sides. As an experienced Calgary real estate professional, I can help you navigate these changes and make informed decisions.
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