The real estate market in Calgary continues to favour sellers as low inventory levels and high demand drive up prices.
According to the Calgary Real Estate Board’s (CREB) monthly statistics for March, there were only 3,233 available units in March, the lowest inventory levels since 2006. This has left the months of supply just above one month, firmly in the seller’s territory, says CREB.
Despite easing from record levels, sales remain stronger than before the pandemic thanks to recent gains in migration supporting demand, CREB’s Chief Economist Ann-Marie Lurie notes.
Total unadjusted residential home prices reached $541,800 in March, a 2.0 per cent gain over last month and nearly one percent higher than prices reported last year. While prices remain below the May 2022 high of $546,000, CREB reports the pace of price growth over the first quarter has been stronger than expected due to the persistent seller’s market conditions.
Lurie says, “The challenge has been centred around supply. As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”
The sales-to-new listings ratio remained relatively high at 73 per cent, with 3,318 new listings compared to 2,432 sales in March. However, both sales and new listings have eased by 40 per cent compared to levels reported last March.
Source: CREB
Detached properties see steep pullback
Detached property sales have seen a steep pullback, with only 1,145 sales reported in March. CREB reports this is the only property type where activity has fallen below long-term trends for the month.
Despite the drop in sales, inventory levels remain comparable to the lowest March levels recorded in 2006.
However, the persistently tight market conditions have contributed to further price growth. According to the board, nearly 63 per cent of the new listings that have come onto the market this year are priced over $600,000, much higher than the 48 per cent reported last year.
In March, the detached benchmark price reached a new record high at $649,800.
Semi-detached & row
In contrast, sales and new listings for row properties have trended up compared to levels seen at the start of the year. However, like other property types, levels are much lower than last year.
The benchmark price for semi-detached properties reached $581,300 in March, over two per cent higher than last month and nearly two per cent higher than last year’s levels.
The benchmark price for row properties rose to $378,100, reflecting a year-over-year gain of nearly eight per cent and representing a new monthly record high.
Apartment condominium market shifts closer to full price recovery
The apartment condominium market reported 682 sales in March, a decline of 11 per cent over last year’s record high. New listings also eased by eight per cent compared to last year, keeping inventory levels relatively low at 1,000 units.
The benchmark price in Calgary reached $293,500, a year-over-year gain of nearly 11 per cent. The recent increase in price is shifting this market closer to full price recovery, CREB reports.
