According to the Calgary Real Estate Board (CREB), sales in higher price ranges increased last month but couldn’t make up for the decrease in lower-priced homes. This resulted in 2,003 sales, which was 17% lower than the previous year’s record. Despite this, sales were still more than 16% higher than the typical levels for September.
Demand remains strong across all price ranges but limited lower-priced options hinder stronger sales
Ann-Marie Lurie, the chief economist at CREB, noted, “We are seeing an increase in new listings in our market, primarily in the higher price ranges. While demand is high across all price ranges, the lack of affordable homes is likely restricting stronger sales.”
Lurie anticipates that challenges in the lower price ranges will persist, but improved supply and lower lending rates should keep demand strong throughout the fall, albeit without the extreme seller market conditions seen earlier this year.
New listings surge
In September, new listings reached 3,687 units, the highest since 2008 for that month. This increase helped boost inventory to 5,064 units, almost double the spring lows but still below the typical 6,000 units for September.
With inventory surpassing sales, the market is gradually moving towards more balanced conditions. The months of supply in September hit 2.5, higher than the previous year’s record low but still favoring sellers.
Home prices and inventory
The increased supply has alleviated some pressure on home prices. The unadjusted benchmark price in September was $596,900, slightly lower than August but more than 5.0% higher than the previous year. Detached homes saw almost 9.0% year-over-year price growth, while apartment condominiums led with a 14% increase, indicating a shift in sales composition.
Detached homes market
Despite a 9.0% increase in sales for homes over $700,000, a significant decline in homes priced below $600,000 resulted in 942 total sales, 17% lower than the previous year. The stabilization of new listings in the higher-priced segment is leading to more balanced conditions for homes priced above $700,000.
The unadjusted detached benchmark price in September was $757,100, slightly down from August but nearly 9.0% higher year-over-year. The tight conditions for lower-priced homes have been a significant driver of this price growth.
Semi-detached homes market
September saw 299 new listings and 182 sales, resulting in a sales-to-new-listings ratio of 61%. Despite the increase in listings, inventory remains low, with less than 400 units available, 33% below long-term trends. The months of supply improved slightly to just over two but still favor sellers, with the unadjusted benchmark price easing to $678,400, more than 9.0% higher than the previous year.
Row homes market
Over 600 new listings entered the market in September, with 70% priced above $400,000. Sales totaled 377 units, slightly lower than the previous year, but inventories rose to 747 units, an improvement over the past two years. This increase led to nearly two months of supply, slowing price growth. The unadjusted benchmark price was $459,200, 10% higher than the previous year.
Apartment condominium homes market
September witnessed a surge in new listings with 993 units, while sales dropped to 502 units. This decline caused the sales-to-new-listings ratio to fall to 50% and inventories to rise to 1,623 units. The months of supply increased to 3.2, the highest since 2021. The unadjusted benchmark price for apartment condominiums was $345,000, up 14% year-over-year. Despite the slight price decrease, year-to-date prices still show a 17% increase compared to 2023.
Check out CREB’s complete reports for the city and region.
Source link
This article was complied by AI and NOT reviewed by human. More information can be found in our Terms and Conditions.
