Calgary Real Estate Market Update-June 2024

July 2, 2024
June Sales decline amid supply challenges and rising prices

Sales in June totaled 2,738, reflecting a 13% decrease from last year’s record high. While there was an improvement in sales for homes priced above $700,000, it wasn’t enough to counteract declines in lower price ranges. Despite the decrease in June sales, they remain over 17% higher than long-term trends.

“The reduction in sales is due to supply challenges in the lower price ranges, which limits sales activity,” said Ann-Marie Lurie, Chief Economist at CREB®. “Inventory in the lower price ranges for each property type continues to decline, offering limited choices for buyers seeking more affordable options. This has also resulted in a competitive market, with over 40% of homes sold above list price.”

New listings in June also decreased relative to sales, maintaining a high sales-to-new-listings ratio at 72%. Although inventory levels improved compared to last year’s lows, primarily in higher price ranges, the 3,789 units available are still 40% below long-term trends.

The slight increase in inventory levels raised the months of supply to 1.4, yet conditions still favor sellers. Tight market conditions led to further price increases, with the unadjusted benchmark price reaching $608,000 in June, up nearly 9% from last year. Price gains were seen across all districts, with the most significant increases in the North East and East districts.

Detached Homes
Sales of higher-priced detached homes did not offset declines for homes under $700,000, resulting in a 16% year-over-year sales drop. Despite this, detached home sales for the first half of the year are on par with last year. New listings declined in June, ending the month with 1,775 detached homes in inventory, an improvement from last year but 45% below long-term trends.

While the detached market remains tight, supply and demand are becoming more balanced in the higher price range. The months of supply range from one month in the East district to just over two months in the City Centre. With less than 1.5 months of supply overall, home prices continue to rise, with the unadjusted benchmark price reaching $767,600 in June, up nearly 1% from last month and 12% from last June.

Semi-Detached Homes
After a significant increase last month, new listings fell in June relative to sales, pushing the sales-to-new-listings ratio up to 76%. Although inventory levels improved, they remained nearly half of the usual June levels.

With just over one month of supply, home prices continued to rise. In June, the unadjusted benchmark price reached $686,100, a 1% increase from last month and over 12% higher than last year. Prices increased across all districts, with the highest gains in the North East and East districts.

Row Homes
Sales of row homes slowed in June compared to the high levels of the past two years. A higher decline in sales compared to new listings caused the sales-to-new-listings ratio to drop to 75%, the lowest June level since 2021.

Conditions remain tight with just one month of supply, especially for properties priced below $600,000. The unadjusted benchmark price rose in June to $464,600, nearly 17% higher than last year. Price growth varied by location, with the highest increases in the most affordable districts.

Apartment Condominiums
June saw 791 sales, an 8% decline from last year, primarily due to a significant drop in sales for units under $300,000. Limited supply of lower-priced units hindered stronger sales activity. Despite the decline, year-to-date apartment sales are up 13% and at record-high levels.

New listings increased relative to sales, reducing the sales-to-new-listings ratio and increasing inventory. Most supply growth occurred in higher-priced units, leading to tight conditions for lower-priced units and more balanced conditions for higher-priced ones. Overall prices continued to rise, reaching $344,700 in June, over 17% higher than last year.

Regional Market Facts
Airdrie
June sales remained stable compared to last year, well above long-term averages. New listings increased compared to last year, with 269 new listings and 209 sales, maintaining a high sales-to-new-listings ratio at 78% and keeping inventories low by historical standards.

Airdrie, like Calgary, faces the tightest conditions in the most affordable market sectors, leading to rising prices. In June, the unadjusted benchmark price rose to $554,500, nearly 1% higher than last month and 9% higher than last year, with the highest price growth in apartment-style properties.

Cochrane
June sales improved over last year, contributing to a year-to-date gain of 7%, thanks to increased new listings. However, this did not significantly impact inventory levels, which remained consistent with last year and 44% below typical June levels.

With nearly 1.5 months of supply, seller-favorable conditions drove further price gains in June. The unadjusted benchmark price reached $571,100, an increase from last month and nearly 9% higher than last year, with the strongest price growth in apartment-style units.

Okotoks
June sales slowed compared to last year, mainly due to a decline in the detached sector. Limited supply options restricted sales activity. Inventory in June was 81 units, 56% below typical levels, with detached supply nearly 63% lower.

Tight market conditions have kept prices elevated compared to last year. While there have been some monthly fluctuations, year-to-date prices are nearly 9% higher than last year.