Detached
New listings in May rose to 2,419 units, with most of
the gains driven by homes priced over $600,000. At the same time,
sales activity has slowed across most price ranges, supporting a
shift toward more balanced conditions and relative stability in prices.
However, districts that are facing more competition from new home
product or are seeing a larger pullback in demand are starting to
show some signs of elevated supply.
The North East district has seen the largest pullback in resale sales
activity combined with some of the highest gains in new listings.
This has driven the sales-to-new listings ratio down to 41 per cent
and the months of supply was nearly four months in May. This is
causing prices to ease in the North East, offsetting some of the
gains reported in the City Centre, West, and North West districts.
City-wide the unadjusted benchmark price in May was $769,400, similar
to last month, one percent higher than last May, and still above last
year’s seasonal peak price.
Semi-Detached
The 428 new listings in May were met with 256 sales,
causing the sales-to-new-listings ratio to rise to 60 per cent this
month. This slowed the pace of inventory growth and the months of
supply remained just above two months. Semi-detached homes continue
to remain less than 10 per cent of all sales and inventory levels in
the city.
This in part is due to construction patterns shifting toward more row
style properties over semi-detached, and is one of the reasons we do
not see the same inventory build as row and apartment style
homes.
Like the detached market there is significant variation within the
city districts. The North East has the highest months of supply at
nearly three months and is reporting some price declines, while the
tightest conditions are in the North West, where prices continue to
rise. Overall, generally tighter conditions are still supporting
price gains for semi-detached properties. In April the unadjusted
benchmark price was $697,300, a monthly gain of less than one per
cent, nearly three per cent higher than last year’s levels and above
last year’s seasonal peak.
Row
Row home
sales have eased over last year’s near record high pace but stayed
well above long-term trends. However, the gain in new listings
has continued to cause further inventory gains. For the second month
in a row, inventory levels were over 1,000 units; we have not seen
this much inventory for row units since 2021.
While inventory levels have improved across all districts, we are
starting to see higher months of supply in the North East district at
3.5 months, resulting in some downward pressure on prices. The North,
North West and South areas have also reported higher year-over-year
pullbacks in resale prices, as improved supply choice for new
properties are impacting resale activity. Overall, the benchmark
price in May was $453,600, down over last month, nearly two per cent
below last May, and lower than last year’s seasonal high.
Apartment
Condominium
Sales this
month totaled 579 units, a significant decline over last May’s record
high of 907 units. While new listings were lower than levels reported
last year, they remained high compared to sales, causing the
sales-to-new listings ratio to drop to 47% this month. This
contributed to further inventory gains and drove the months of supply
up to 3.6 months.
High levels of apartment rental units under construction are adding
to the rental supply and contributing to rent adjustments. This is
likely slowing condo ownership demand coming from existing renters
and potential investors, contributing to some of the shifts witnessed
in the apartment condominium sector.
More supply choice is also weighing on condominium prices. In May the
benchmark price eased to $335,300, down from last month and over one
per cent lower than last year. The steepest declines are occurring in
the North East and South East districts, where competition from the
new home market is weighing on resale pricing. While prices have
eased and are below peak levels, recent declines have not offset the
double-digit gains reported over the past two years.
REGIONAL MARKET FACTS
Airdrie
While improving over last month, May sales eased
compared to last year, contributing to the year-to-date decline of 10
per cent. However, the 772 sales so far this year are consistent with
long-term trends in Airdrie. At the same time new listings continue
to rise causing the sales-to-new listings ratio to fall to 58 per
cent, still well within balanced conditions, but a significant change
from the over 90 per cent ratio reported last year. Recent shifts in
sales and new listings have supported gains in inventory levels.
In May there were 468 units in inventory, reflecting the highest May
reported since prior to the pandemic. The shift in supply is in part
related to the surge in new construction providing more options for
potential consumers. Additional supply choice is impacting price
growth. The total residential benchmark price was $540,600 in
May, down nearly one per cent over last month and nearly two per cent
below last year’s levels.
Cochrane
Sales in Cochrane were fairly resilient until this
month, where sales were 17 per cent slower than last year. The
decline was enough to cause year-to-date sales to ease to levels just
below those reported last year. At the same time, this month
new listings surged, driving the sales-to-new listings ratio down to
55 per cent and supporting further inventory gains. With 293
units available in May, levels are more consistent with long-term
trends. The months of supply neared three months in May and while this
did slow the pace of price growth, the total residential benchmark
price of $589,400 is still nearly four per cent higher than last May.
Okotoks
A boost in new listings this month supported a surge
in sales activity. However, with a sales-to-new-listings ratio of
74%, inventory levels did not change much over last month and the
months of supply once again dropped below two months. Okotoks has struggled
to add supply at the pace reported in Calgary, Cochrane and Airdrie
and sales growth has been dampened by limited supply choice.
While there have been some improvements in inventory levels, as of
May levels remained nearly 28 per cent below long-term trends for the
city. The limited supply choice given the relatively strong
demand has continue to support some price growth in the town. As of
May the unadjusted benchmark price was $633,900, up over last month
and over two per cent higher than last year.
Click here to view the full City of Calgary monthly stats
package.
Click here to view the full Calgary region monthly stats
package.
For more
information, please contact:
Economic
Analysis
Email: stats@creb.ca
Phone: 403-263-0530
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