As inventory remains tight and prices continue on an upward trajectory, home sales in Calgary lost some momentum in June.
Calgary’s real estate market saw a dip in June, according to the latest report from the Calgary Real Estate Board (CREB), with sales hitting 2,738 last month, down 13% from last year’s record-breaking numbers. While there was a boost in sales for homes priced over the $700,000 mark, it wasn’t enough to balance out the declines in the lower price ranges. Still, June sales were 17% higher in Calgary than the long-term average.
“The pullback in sales reflects supply challenges in the lower price ranges, ultimately limiting sales activity,” said Ann-Marie Lurie, Chief Economist at CREB®. “Inventory in the lower price ranges of each property type continue to fall, providing limited choices for potential purchasers looking for more affordable product. It also continues to be a competitive market for some buyers with over 40% of the homes sold selling over list price.”
Inventory challenges persist
New listings eased up relative to sales last month, with the sales-to-new-listings ratio remaining high at 72%. Inventory levels got a boost up from June 2023’s lows, mainly thanks to gains in the higher price ranges. But with just 3,789 units available, Calgary inventory is still 40% below the long-term average. This slight inventory bump helped increase supply to 1.4 months’ worth, but sellers still have the upper hand. Tight market conditions kept pushing prices up, with the benchmark price climbing to $608,000 – up almost 9% from last year.
High-end detached market stays balanced while lower end loses momentum
Sales for detached homes dropped 16% year-over-year in June, mostly due to fewer sales of homes under $700,000. However, sales for the first half of the year are still on par with 2023 levels. By the end of the month, there were 1,775 detached homes available, an improvement from last year, but still 45% below the city’s long-term average.
In the detached segment, higher-priced homes have recorded better balance between supply and demand. The months of supply range from one month in the East district to just over two months in the City Centre. With less than one and a half months of supply overall, prices are still climbing, hitting a benchmark of $767,600 – up nearly 1% from last month and 12% from June 2023.
Inventory shortage drives price gains for semi-detached homes
June 2024 saw a pull back in new listings for semi-detached homes, pushing the sales-to-new-listings ratio up to 76%. Even with some gains in inventory levels, we’re still seeing about half the typical June inventory. With just over a month of supply available, prices kept rising, with the benchmark price reaching $686,100, a 1% increase from last month and over 12% higher than last year.
Limited row home supply keeps market tight
Row home sales slowed down in June compared to the higher levels seen in the past two years. The sales-to-new-listings ratio fell to 75%, the lowest June level since 2021. Despite this, the market remains tight, with only one month of supply, particularly for homes priced below $600,000. The benchmark price for row homes rose to $464,600, almost 17% higher than the same month last year, with the biggest jumps recorded in the most affordable city districts.
Record high apartment condo sales despite decline in lower-priced units
Apartment condo sales in June totaled 791 units, down nearly 8% from 2023. The drop was mainly due to fewer sales of units priced under $300,000. Limited supply of lower-priced units is holding back stronger sales activity. Despite this, year-to-date apartment sales are up 13%, hitting record highs.
New listings for apartments increased relative to sales, pushing the sales-to-new-listings ratio down and driving up inventory. Most of this supply growth happened in higher-priced properties, leading to tight conditions at the lower end and more balanced conditions for pricier units. Overall, apartment prices continued to climb, reaching $344,700, more than 17% higher than last year.
