CALGARY HOUSING MARKET SEES SHIFTS
Housing activity continues to move away from the extreme sellers’ market conditions experienced throughout the spring. Easing sales, combined with gains in supply, pushed the months of supply above two months in August, a
level not seen since the end of 2022.
“As expected, rising new home construction and gains in new listings are starting to support a better-supplied housing market,” said Ann-Marie Lurie, Chief Economist at CREB. “This trend is expected to continue throughout the remainder of the year, but it’s important to note that supply levels remain low, especially for lower-priced properties. It will take time for supply levels to return to those that support more balanced conditions.”
Inventory levels in August reached 4,487 units, 37 percent higher than last August but nearly 25 percent lower than long-term trends for the month. Higher-priced properties mostly drove the supply gains, as the most affordable homes in each property type continued to report supply declines.
The supply gains were made possible by both an increase in new listings in August and a pullback in sales activity. There were 2,186 sales in August, representing a 20 percent decline from last year’s record high but still 17 percent higher than long-term averages for the month. The sales declines were driven by homes priced below $600,000.
Following stronger-than-expected gains earlier in the year, the pace of price growth is starting to slow. In August, the total unadjusted residential benchmark price was $601,800, six percent higher than last year and just slightly lower than last month. Year-to-date, the average benchmark price rose by nine percent.
DETACHED
Detached home sales fell by 14 percent compared to last year, as gains in homes priced above $600,000 were not enough to offset declines in the lower price ranges, which continue to struggle with low supply levels. In August, there were 2,011 detached homes available in inventory, with over 85 percent priced above $600,000.
The improving higher-end supply compared to sales helped push the months of supply up to nearly two months.
While market conditions are still tight, this is a significant improvement from the under-one-month supply experienced in the spring. Shifting conditions are relieving some pressure on home prices. In August, the unadjusted detached benchmark price was $762,600, slightly lower than last month but still over nine percent higher than last year.
SEMI-DETACHED
With 297 new listings and 172 sales, the sales-to-new-listings ratio in August dropped to 58 percent, which is more
consistent with pre-pandemic levels. This shift supported a rise in inventory levels, and the months of supply rose to nearly two months.
While conditions remain relatively tight, the boost in new listings has helped ease some of the pressure on prices. In August, the unadjusted benchmark price was $681,200, a decline from last month but nearly 10 percent higher than last year.
