AUS
NZ
UK
CA
USA
IND
The Calgary real estate market experienced a notable downturn in August, with home sales plummeting by 19.5% compared to the same period last year. The Calgary Real Estate Board (CREB) reported that a total of 2,186 properties were sold in August, a decrease from the 2,716 transactions recorded in August 2023. This decline indicates a shift away from the intense sellers' market conditions that characterized the spring months.
Price Trends: Slowing Growth
The benchmark price for all home types in Calgary was $601,800 in August, showing a slight dip from the previous month but a 6.3% increase year-over-year. This slowdown in price growth suggests that the rapid increases seen earlier in the year may be stabilizing. Ann-Marie Lurie, CREB’s chief economist, notes that while price growth has moderated, the market remains dynamic due to ongoing supply and demand factors.
Increased Supply and Listings
The market saw a boost in supply with 3,536 new listings in August, marking a 13% increase from the previous year. Inventory levels also climbed to 4,487 units, a substantial 37.3% rise from August 2023. Despite this increase, inventory remains nearly 25% below the long-term average for the month, highlighting ongoing constraints in supply. The rise in new listings is attributed to the growing construction of new homes and the influx of new properties on the market.
Market Segmentation: Variations by Property Type
The increase in inventory was primarily driven by higher-priced properties, while sales declines were more pronounced in the lower price brackets, specifically homes priced below $600,000. In terms of price changes across different property types, apartments saw the most significant increase, with benchmark prices jumping 15.8% to $346,500. Row houses followed with a 12.5% rise, reaching $461,700. Semi-detached homes experienced a 9.6% increase to $681,200, and detached home prices grew by 9.5%, hitting $762,600.
Outlook and Market Dynamics
Ann-Marie Lurie highlights that the current trend of increased supply is expected to continue throughout the remainder of the year. However, she notes that supply levels, especially for lower-priced properties, remain constrained. "It will take time for supply levels to return to those that support more balanced conditions," Lurie said in a press release.
Overall, while the Calgary real estate market is adjusting from the extreme conditions seen earlier in the year, the continued increase in supply and gradual slowing of price growth suggest a shift towards a more balanced market.
