Calgary Area Real Estate Newsletter 📰

June 01 2024

Strong Home Sales in Calgary Despite Shortages in Lower-Priced Markets

Read Time 90 sec.

Dear Readers,

May 2024 has unfolded with noteworthy trends in the Calgary real estate market. Despite a slight dip compared to last year's peak, the resilience of the market is evident with a robust 3,092 resale transactions, standing strong at 34% above long-term trends. A noteworthy shift has been observed with a decline in sales of lower-priced detached and semi-detached homes, attributed mainly to a limited inventory.

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Market Overview 📊 

Ann-Marie Lurie, CREB® Chief Economist, remarks, "While new listings have increased, predominantly in higher price brackets, the robust economic climate has buoyed sales in these segments. However, a constrained supply in the lower price ranges tempered this month's overall sales figures."

New listings have surged by nearly 19% from last year to 4,333 units, enhancing the sales-to-new listings ratio to 71%. This growth, primarily in properties over $700,000, has modestly improved inventory levels, although they remain nearly half of the typical May figures.

Property Type Highlights

Detached Homes 🏡 

Despite gains in high-end sales, overall detached home sales dropped by 7% year-over-year, with a notable shortage in homes under $600,000. The benchmark price for detached homes rose to $761,800, reflecting a 13% increase from last year.

Semi-Detached Homes 🏘️

Semi-detached homes saw a 11% rise in year-to-date sales. The benchmark price increased to $678,000 this May, up 13% from the previous year.

Row Houses 🏠 🏠 🏠 

Row house sales climbed, contributing to a 16% year-to-date increase, with the benchmark price reaching $462,500, up over 19% from last year.

Apartment Condominiums 🏢

Strong demand in affordable segments drove apartment condo sales up, with a record year-to-date increase of 19%. The benchmark price has seen significant growth, particularly in the North East and East districts, where prices soared by over 30%.

Regional Insights 🌍 

Airdrie

New listings bolstered inventory, though levels remain low at half of typical figures for May. Benchmark prices in Airdrie continue to climb, with detached homes now averaging $651,000.

Cochrane

Tight market conditions persist, with new listings almost equaling sales, driving prices up across all property types. The benchmark price for detached homes reached $667,700.

Okotoks

Inventory constraints continue, with only 84 units available, 55% below usual levels. The town’s residential benchmark price increased by over 8% from last year, indicative of continued market pressure.

📉Latest Interest Rates

Today The Bank of Canada lowered its key interest rate by 0.25 per cent, this is the bank's first rate cut in four years. The consumer the prime rate is 6.95%, 
For an update on the latest interest rates for various loan terms go to rayriley.com/blog/current-interest-rates/

Looking Ahead 🔮

Despite varying supply levels across different districts and price segments, the overarching trend continues to favor sellers, with most areas witnessing price growth due to persistent low supply and high demand. Stay tuned for more updates as we navigate these dynamic market conditions.🔑.


Thank you for staying connected.
Warmest regards,
Ray Riley

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To Read the Full City of Calgary Housing Market Update Report Click Here
Data sourced from the Calgary Real Estate Board (CREB®)
Data sourced from The Bank of Canada