Price Gains Continue as Inventory Remains Scarce

Dated: November 8 2023

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As November sweeps in with its brisk winds and colorful leaves, Calgary's real estate market is painting an exciting picture. Let's dive into the latest updates and discover what's been happening in the local housing scene.

October: Sales Surge and Inventory Dips

Last month, we observed a slight slowdown in sales activity, which is in line with the usual seasonal trends. However, the numbers tell a different story. With 2,171 sales recorded, October exceeded expectations with a remarkable 17% increase compared to the previous year, marking one of the highest levels for this month. This surge can be attributed to the rise in apartment condominium sales, driven by consumers seeking affordable housing options amidst the backdrop of high-interest rates.

New Listings on the Rise

In October, we also witnessed a surge in new listings compared to the previous year, with 2,684 units hitting the market. These figures mark the highest October levels seen since 2015. Despite this increase in new listings, our inventory remains remarkably low. In fact, it's over 40% lower than the typical levels we'd see in October.

CREB® Chief Economist Ann-Marie Lurie remarks, "Despite some recent improvements in new listings, supply levels remain challenging in our market. It will take some time to see a shift toward more balanced conditions and ultimately more price stability."

Upward Pressure on Home Prices

With a mere one and a half months' worth of supply, the Calgary housing market continues to experience upward pressure on home prices. In October, the unadjusted benchmark price reached $571,600, marking a notable increase over the previous month and nearly a 10% jump compared to last October.

Detached Homes: A Mixed Bag

In the detached home segment, both sales and new listings improved over the figures reported in October of the previous year. However, inventory levels slowed over the last month, with 1,302 new listings and 976 sales. Inventory levels now sit at their lowest point ever reported for October, especially for homes priced below $700,000. The only segment where conditions are not as tight as the previous year is homes priced above $1,000,000, with a months-of-supply of 4.3 months.

Persistently tight conditions continue to drive price gains in the detached market. In October, the unadjusted benchmark price reached $697,600, marking a slight increase over the previous month and a remarkable 12% rise compared to the same time last year.

Semi-Detached and Row Homes: A Similar Story

Semi-detached and row homes saw improvements in new listings, although the sales-to-new listings ratio remained relatively high. Inventory levels for both segments are at historic lows, with conditions exceptionally tight for lower-priced homes. This has resulted in continuous price growth, with the unadjusted benchmark price for semi-detached and row homes reaching $628,700 and $425,200, respectively.

Apartment Condominiums: High Sales, Low Inventory

Record-high sales in October were made possible thanks to a significant increase in new listings. However, a high sales-to-new listings ratio kept inventory levels trending down. Most notably, condos priced below $300,000 represent a smaller percentage of the total inventory, indicating a shift in the market.

Seller market conditions have been driving price gains, with the unadjusted October benchmark price reaching $316,600, a gain of over 16% compared to the previous year.

Regional Market Insights

The surrounding regions of Airdrie, Cochrane, and Okotoks have also experienced unique market dynamics, with varying impacts on sales and prices. Notably, Airdrie saw a year-to-date decline in sales, primarily driven by detached home sales. Cochrane recorded improvements in new listings but also lower inventory levels compared to the previous year. Okotoks, too, has seen sales decline, particularly in detached activity.

Despite the fluctuations in these regional markets, persistent tight market conditions have continued to support further price growth.

Explore the Full Stats

To delve deeper into the latest statistics for the City of Calgary and the surrounding region, reach out to me!

Stay tuned for more exciting updates and insights on the Calgary real estate scene as we venture into the fall season! 🏡🍂

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Daniyal Nasiri

Originally from Bournemouth, England, Daniyal Nasiri has been a proud Calgarian for over 22 years who has begun to make his mark on this city in the Real Estate industry by bringing a modern approach ....

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