Calgary Real Estate Market Update-February 2024

March 1, 2024
Low inventory and high demand drive price gains in February

February witnessed a continuation of the real estate market trend characterized by low inventory and heightened demand, propelling price increases.

Despite a rise in new listings, which reached 2,711 units, the surge in sales, totaling 2,135 units, marked a substantial uptick of almost 23% compared to the previous year. This surge in sales, coupled with the increase in new listings, maintained the sales-to-new listings ratio at a remarkable 79%, ensuring that inventory levels remained close to historic lows. Consequently, the months of supply dwindled to slightly over one month, mirroring the tight conditions observed during the spring of the preceding year.

Ann-Marie Lurie, Chief Economist at CREB®, remarked, “Purchasers are swiftly seizing new listings, curbing inventory growth and fostering a climate of high demand and low supply, thereby fueling price gains in Calgary.” The most significant challenge in terms of supply persists in homes priced under $500,000, witnessing a notable 31% decrease in inventories compared to the previous February. Conversely, there is a burgeoning supply of higher-priced homes, contributing to a more balanced market in the upper echelons.

In February, the unadjusted detached benchmark price soared to $585,000, reflecting a gain of over 2% from the previous month and a remarkable 10% surge compared to the same period last year. Notably, the East district, known for its affordability, experienced the most substantial year-over-year price growth at 25%, while the City Centre reported the slowest price appreciation, hovering at just under 5%.

Detached Homes:
Detached properties experienced a similar trajectory, with 1,195 new listings entering the market, predominantly priced over $600,000. Despite an improvement in new listings compared to the previous month, levels remained below the typical February standards. Nevertheless, sales surged to 954 units, marking a 20% increase year-over-year. This surge in sales, propelled by listings growth, maintained inventory levels at record lows for February, with an almost 80% sales-to-new listings ratio.

The exceptionally tight market conditions catalyzed further price growth, with the unadjusted detached benchmark price soaring to $721,300, representing a nearly 3% increase from the previous month and an impressive 13% surge compared to the previous February. While price hikes were witnessed across all districts, the most substantial year-over-year gains were observed in the North East and East districts.

Semi-Detached:
Witnessed a temporary rise in listings compared to sales, with 223 new listings met by 191 sales in February, resulting in an 86% sales-to-new-listings ratio. This prevented any significant alteration in the low inventory scenario, maintaining the months of supply at slightly over one month.

In February, the unadjusted benchmark price for semi-detached properties reached $639,100, marking a monthly gain of over 2% and a robust 13% increase compared to the previous year. Year-over-year price gains varied across districts, ranging from 10% in the City Centre to over 26% in the East district.

Row Properties:
Saw an uptick in new listings, reaching 457 units in February, contributing to a year-to-date increase of 22%. This rise in new listings bolstered sales growth, thereby mitigating any significant alteration in the low inventory situation. For the second consecutive month, the months of supply remained below one month, indicating exceptionally tight market conditions.

The tight market conditions propelled robust price growth for row properties, with the unadjusted benchmark price surging to $436,500 in February, reflecting a gain of over 2% from the previous month and a substantial 19% increase compared to the previous February. Price appreciation was witnessed across all districts, with the most pronounced growth observed in the most affordable districts.

Apartment Condominium:
Sales surged to 638 units in February, contributing to a year-to-date sales increase of 39%. Relative affordability continued to fuel strong demand for apartment-style homes, with sales growth facilitated by the continued expansion in new listings. Although inventory levels exhibited a seasonal uptrend over the past month, they declined by 12% compared to the previous year, maintaining a seller-favorable market with slightly over one month of supply.

The persistent tight market conditions exerted upward pressure on home prices, with prices witnessing a steady incline since January of the previous year. As of February, prices reached $329,600, marking a 17% gain over the previous February. Price appreciation was evident across all districts, with year-over-year gains exceeding 19% in all but the City Centre, which reported a 13% increase.

Regional Market Facts

Airdrie:
New listings improved in February, yet with 182 new listings against 135 sales, the sales-to-new listings ratio remained elevated, and inventory levels eased compared to the low levels of the previous year. Inventory levels plummeted to half of typical February levels, marking the lowest since 2006. The decline in sales relative to inventory caused the months of supply to diminish to slightly over one month, further driving home prices. In February, the unadjusted benchmark price climbed to $529,700, over 1% higher than the previous month and a substantial 10% surge compared to the previous February.

Cochrane:
Witnessed a rise in new listings to 105 units in February, the highest monthly total since July of the previous year, contributing to a year-to-date gain of 22%. Simultaneously, February sales improved over the previous year, with 65 sales. While there was some growth in inventory levels compared to the previous year, inventories remained significantly below typical levels. Nonetheless, the months of supply remained relatively low at two months, fostering further price growth. In February, the unadjusted benchmark price reached $548,300, marking an improvement over the previous month and a robust 11% increase compared to the previous year.

Okotoks:
For the second consecutive month, new listings in Okotoks surpassed those of the previous year. However, as sales also surged over the past two months, inventory levels in February remained steady compared to the previous month and slightly higher than the previous year. Inventory levels hovered near record lows for the month, standing 63% below long-term trends. Okotoks struggled to augment supply to meet demand, maintaining tight conditions and driving home prices. As of February, the unadjusted benchmark price reached $605,500, nearly 3% higher than the previous month and a notable 10% gain over the previous year.