Supply levels improve, taking some pressure off prices

With the busy spring market behind us, we are starting to see some shifts in supply levels. With 2,380 sales and 3,604 new listings, the sales-to-new listings ratio fell to 66 per cent, supporting a gain in inventory. 

Inventories rose to 4,158 units, still 33 per cent below what we typically see in July, but the first time they have pushed above 4,000 units in nearly two years. Although the majority of supply growth occurred for homes priced above $600,000, the rise has helped shift the market away from the extreme sellers’ market conditions experienced throughout the spring.

“While we are still dealing with supply challenges, especially for lower-priced homes, more options in both the new home and resale market have helped take some of the upward pressure off home prices this month,” said Ann-Marie Lurie, Chief Economist at CREB^®. “This is in line with our expectations for the second half of the year, and should inventories continue to rise, we should start to see more balanced conditions and stability in home prices.”

July sales eased by 10 per cent over last year’s record high but were still higher than long-term trends for the month. Like last month, the pullback in sales has been driven by homes priced below $600,000. Nonetheless, the gain in inventory combined with slower sales caused the months of supply to rise to 1.8 months, still low enough to favour the seller but a significant improvement from the under one month reported earlier this year. 

Improved supply helped slow the pace of monthly price growth for each property type. In July, the total residential benchmark price was $606,700, similar to last month and nearly eight per cent higher than last year’s levels. 

Detached

Detached home sales in July fell by eight per cent, as the 15 per cent rise for homes priced above $600,000 was not enough to offset the 50 per cent decline occurring in the lower price ranges. The decline in the lower price ranges reflects limited availability as inventories and new listings continue to fall for lower-priced homes. Year-to-date detached sales have eased by just over one per cent compared to last year. 

With 1,098 sales and 1,721 new listings this month, inventories rose to 1,950 units. Inventories are still low based on historical levels, but the gain did help push the months of supply up to nearly two months and supports some stability in prices. The unadjusted benchmark price in July was $767,800, similar to last month but 11 per cent higher than last July.

Semi-Detached

Relative affordability continues to attract purchasers to the semi-detached sector. While sales did slow slightly compared to last year, year-to-date sales reached 1,518 units, six per cent higher than last year. The growth in sales was possible thanks to gains in new listings. However, conditions remain relatively tight, with a 76 per cent sales-to-new listings ratio and months of supply of 1.5 months.

While the pace of monthly price growth has slowed, at an unadjusted benchmark price of $687,900, prices are nearly 12 per cent higher than last year. The highest price growth continues to occur in the city’s most affordable North East and East districts.

Row

Gains in row new listings relative to a pullback in sales caused the sales-to-new listings ratio to fall to 73 per cent this month. This supported gains in inventory levels, and the months of supply rose to 1.3 months.

While conditions continue favouring the seller, the shift prevented further monthly price gains this month. Nonetheless, at a benchmark price of $464,200, levels are still nearly 15 per cent higher than last year. Year-over-year price gains have ranged from a low of 13 per cent in the City Centre and North districts to over 20 per cent in the North East and East districts.

Apartment Condominium

Sales in July slowed to 659 units, as a significant drop in sales occurred for properties priced below $300,000. Like the other property types, limited supply choices for the lower-priced units prevented stronger sales activity. 

New listings in July were 1,043 units, high enough to cause the sales-to-new listings ratio to fall to 63 per cent. This supported inventory gains and months of supply of over two months. Improved supply relative to sales helped slow the pace of monthly price growth. However, the unadjusted benchmark price of $346,300 is still 17 per cent higher than levels reported last year at this time.

REGIONAL MARKET FACTS

Airdrie

New listings in July rose to 287 units, the highest level ever reported for July. At the same time, sales slowed to 186 units, supporting some gains in inventory levels. While inventories have improved, the 298 units are still 26 per cent lower than typical levels seen in July.

Inventory gains have occurred across most price ranges in Airdrie but conditions continue to remain relatively tight, especially in the lower price ranges of each property type. Overall, the unadjusted benchmark price in July was $553,900, similar to last month but eight per cent higher than last year’s levels. 

Cochrane

July sales improved over last year’s levels, contributing to the year-to-date gain of nearly eight per cent. While new listings also improved compared to last year in July, it was not enough to cause any significant shift from the low inventory levels. 

With a sales-to-new-listings ratio of 83 per cent and months of supply of 1.5 months, the market remained relatively tight, and prices continued to rise. In July, the unadjusted benchmark price reached $576,600, nearly one per cent higher than last month and nine per cent higher than last year’s levels.

Okotoks

A pullback in sales relative to new listings helped support gains in higher inventory levels in Okotoks. While inventory levels are 25 per cent higher than last year, the 85 units still reflect exceptionally low inventory levels and are half the levels typically seen in July.

With a sales-to-new listings ratio of 78 per cent and months of supply of 1.3 months, conditions continue to favour the seller. While there have been some monthly price fluctuations, the unadjusted benchmark price in July reached $622,200, over six per cent higher than last July.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

https://www.creb.com/News/CREBNow/2024/August/Supply_levels_improve_taking_some_pressure_off_prices/

Pete: So we’ve seen sales declined by almost 13% and we’ve seen inventory grow by over 9%. Months of supply even is up by 25%. Are we getting into a buyer’s market? No, no, no, no, no, no. Stand by, I’ll give you all the details. 

Pete de Jong here with ReMax. So we’re going to do a market update for June versus June of last year. Of course, remember that June of last year was a was a record year. So we have to keep that in mind. So when I talk about sales being down about 13%, that’s still 17% higher than the long-term average.

So significantly higher than the long-term average. And when you go through the rest of these details like I’m gonna give you here, you’re gonna see that we’re still in a strong seller’s market. So like I said, sales down. 13%, but up 17% over long term trends. New listings are down 3%, sorry, 3.6%. I expect that trend to continue a little bit over the next couple of months, but let’s see, inventory is up 9.2%, which again, if you’re a buyer, you kind of going, well, that’s fine. That’s great. I want to see inventory pick up, but it’s still 40% lower than our long term average. So again, we’re still in a strong, strong seller’s market.

In fact, in June that we just finished 40% of the sales were over list price. So you know, like I said, there’s still a dramatic shortage of inventory and it’s it’s having a, You know, it’s having an effect on pricing and stuff. Prices in general are up 8.5%. It breaks down like this: detached are up 12% semi detached are up 12.2%. Row houses are up 17%. Row houses is townhouses, basically the same thing there. And apartments, which if you remember a year or two ago saying buy an apartment, especially a cheap one, they’re going to go up, they’re up 17.5%. So in general we are seeing prices come up pretty dramatically.

And in terms of a month supply, you know, I said, we’re up 25%. That gives us about, well, it’s 1.38 months. So a month and a week and a half worth of supply. Which isn’t a lot. So again, we’re seeing some shifts. They’re very slight. We’re seeing inventory climb up on a weekly basis, almost just very slowly and incrementally.

And we’re seeing sales drop only because there’s still just not enough sales to compete with what we had last year. And in terms of what’s going on across the city, every area of the city is up in terms of average price. So of course as has been the trend for a year or two, the most dramatic increases are coming from the East side, which is like Forest Lawn, Dover, Erin Woods, Applewood, even they’re up like 18% in price.

The Northeast, which would be everything from. Like Whitehorn, Temple, up to Skyview and up to Stoney Trail. They’re up about 14.2%. So that’s pretty good. The smallest increases are still downtown. Still 3.8%. So I still look at downtown. I’ve been saying this for a while as an opportunity. If you still want to invest in Calgary.

As people return to work and they are more and more still they went from, you know, working from home to working from the office three days a week to now we hear more and more people are working every day from, from the office, living downtown has become more attractive again. So but as of now, they’re up 3.8% year over year. 

If you want to know what’s going on in your neighborhood, though, or in your market segment, whether it’s a townhouse or a, or a detached house or an apartment, and depending on what area of the city you’re in, because they do fluctuate across the city and across market segments, give me a call or send me a text.

My number will appear somewhere, somewhere here on the video, but otherwise it’s 403-818-7310. I’ll happily send you a quick free market evaluation and then otherwise if you want a stronger number, then I’d have to see the place and we can make an appointment to do that. Maybe even make a plan for you to move if it makes sense, but give me a shout anytime. I’m happy to chat real estate. All right. Have a great day yourself. And we’ll talk to you soon.

Pete: Bye.

June sales decline amid supply challenges and rising prices

Sales in June reached 2,738, marking a 13 per cent decline from last year’s record high. Although sales improved for homes priced above $700,000, it was not enough to offset the declines reported in the lower price ranges. Despite the easing in June sales, they remain over 17 per cent higher than long-term trends.

“The pullback in sales reflects supply challenges in the lower price ranges, ultimately limiting sales activity,” said Ann-Marie Lurie, Chief Economist at CREB®. “Inventory in the lower price ranges of each property type continue to fall, providing limited choices for potential purchasers looking for more affordable product. It also continues to be a competitive market for some buyers with over 40 per cent of the homes sold selling over list price.”

This month, new listings also eased relative to sales, causing the sales-to-new-listings ratio to remain elevated at 72 per cent. Inventory levels did improve over last year’s low levels, primarily due to gains in the higher price ranges. However, with 3,789 units available, levels remain 40 per cent lower than long-term trends.

The modest change in inventory levels helped increase the months of supply. However, at 1.4 months, conditions continue to favor sellers. Persistently tight conditions drove further price gains this month. In June, the unadjusted benchmark price rose to $608,000, a gain over last month and nearly nine per cent higher than last year. Prices rose across all districts, with the most significant year-over-year gains occurring in the North East and East districts.

Detached

Gains in higher-priced detached home sales were not enough to offset the pullbacks for homes priced below $700,000, leading to a 16 per cent year-over-year sales drop. Despite the recent pullback, detached home sales for the first half of the year remain in line with levels reported last year. Meanwhile, following several months of gains, new listings eased this month. By the end of June, there were 1,775 detached homes in inventory, an improvement over last year but 45 per cent below long-term trends for the month.

While conditions remain tight in the detached market, we are starting to see better supply and demand balances in the upper end of the market. The months of supply have ranged from a low of one month in the most affordable East district to just over two months in the City Centre. Nonetheless, with less than one and a half months of supply, we continue to see upward pressure on home prices. In June, the unadjusted benchmark price reached $767,600, nearly one per cent higher than last month and 12 per cent higher than prices reported last June.

Semi-Detached

Following a significant gain last month, new listings pulled back in June relative to sales, causing the sales-to-new-listings ratio to rise to 76 per cent. While this did not prevent some gains in inventory levels, inventory levels remained nearly half of those traditionally seen in June. 

With just over one month of supply, we continue to see upward pressure on home prices. In June, the unadjusted benchmark price reached $686,100, a one per cent gain over last month and over 12 per cent higher than levels reported last year. Prices rose across all districts in the city, with the steepest gains occurring in the most affordable areas of the North East and East districts.

Row

Like other property types, row home sales slowed in June relative to the high levels achieved over the past two years. A higher pullback in sales compared to new listings caused the sales-to-new-listings ratio to fall to 75 per cent, the lowest June level reported since 2021. 

However, conditions remain exceptionally tight with one month of supply, especially for properties priced below $600,000. The unadjusted benchmark price trended up in June, reaching $464,600, nearly 17 per cent higher than levels reported last year at this time. While price adjustments have varied depending on location, we continue to see the highest price growth occurring in the most affordable districts.  

Apartment Condominium

There were 791 sales in June, a nearly eight per cent decline over last year. The decline in sales was primarily due to the significant pullback for units priced below $300,000. Limited supply choice for lower priced products is preventing stronger sales activity. Despite the monthly pullback, year-to-date apartment sales are up by 13 per cent, and are at record-high levels. 

New listings continue to rise relative to sales, causing the sales-to-new-listings ratio to fall and driving further inventory gains. However, much of the supply growth has occurred for higher-priced properties, resulting in tight conditions at the lower end of the market and more balanced conditions for higher-priced units. Overall prices continued to trend up this month, reaching $344,700, over 17 per cent higher than last year.

REGIONAL MARKET FACTS

Airdrie

June sales remained relatively stable compared to last year at levels that remain well above long-term averages. At the same time, we saw a boost in new listings this month compared to last year. However, with 269 new listings and 209 sales, the sales-to-new-listings ratio remained elevated at 78 per cent, keeping inventories relatively low based on historical standards.

Like Calgary, Airdrie is experiencing the tightest conditions for the most affordable sectors of the market, and prices continue to rise. In June, the unadjusted benchmark price rose to $554,500, nearly one per cent higher than last month and nine per cent higher than last year’s levels. Price growth has been the highest for apartment-style properties. 

Cochrane

June sales improved over last year’s levels, contributing to the year-to-date gain of seven per cent. This was possible thanks to the boost in new listings in June. However, the gains in new listings did little to impact the inventory levels, which remained consistent with levels reported last year and are 44 per cent lower than levels we typically see in June.

With nearly one and a half months of supply, conditions continue to favour the seller, driving further price gains this month. In June, the unadjusted benchmark price was $571,100, an increase over last month and nearly nine per cent higher than last year’s levels. Like Airdrie, the price growth was strongest for apartment-style units, which are also the most affordable products available in the town.

Okotoks

Sales in June slowed compared to last year, mostly due to a pullback in the detached sector. Sales activity has been somewhat restricted due to the limited supply options. As of June, there were 81 units in inventory, 56 per cent lower than levels we typically see in the month, and detached supply is nearly 63 per cent lower.

Persistently tight market conditions have kept prices elevated compared to last year. While there has been some monthly fluctuation, year-to-date prices are nearly nine per cent higher than last year’s levels.

https://www.creb.com/News/CREBNow/2024/July/June_sales_decline_amid_supply_challenges_and_rising_prices

Pete: Hey guys, it’s Pete de Jong and Katelyn Brecio here with RE/MAX for another Calgary real estate market update.

This is for March of 2024. And we’re going to talk a little bit about inventory versus demand. Supply versus demand. In other words, we’re going to talk about the effect of that on pricing and how that’s affecting different segments and that kind of thing. We’re going to talk also about what areas of the city are outperforming other areas.

And who knows, we might just bash Trudeau a little bit too, but we’ll see how that goes. 

Katelyn: We’ll spill the tea on him. 

Pete: Kate’s got her tea. Yes.

And actually, you know, before I even start, Kate, welcome back. 

Katelyn: Oh, thank you. 

Pete: Nice to have you working with me again. 

Katelyn: Thank you very much. Yeah. Yeah, it’s been a, it’s been a wild ride the last couple months. 

Pete: Well, Kate’s usually away, so it’s nice, you know, I, I get a lot of negative feedback when she’s not here because you have to look at my ugly face and as I do the market update, but now Kate’s back.

So I, I think the level of Professionalism and all that stuff is gonna be a bit of an uptick now. 

Katelyn: I thought I’d bless you with my presence once in a while. 

Pete: Thank you. Thank you. Yes. I’m sure you’ve got another beach planned in the next little while, so. 

Katelyn: I wish. 

Pete: All good. 

Katelyn: After looking at the weather outside.

Pete: Oh, it’s brutal. Yeah, the never ending winter. Anyways, what else is never ending is price increases in Calgary, and that’s because We’re seeing sales go up about 10%, new listings come down about 4.5%. That’s leaving us with a bit of an inventory problem, isn’t it? 

Katelyn: Yeah, we’re, we’re down 22% compared to last year for inventory, which brings down our months of supply to not even a month’s worth.

Pete: We’ve got less than a month’s worth of supply. And remember last year, we were complaining last year about how little inventory we had. 

Katelyn: And here we are. So. Don’t complain. 

Pete: Yes, don’t. Well, you know what, I mean, this is a housing crisis, especially for buyers, and even within buyers, especially first time buyers.

I think about my four kids, and I don’t know how they’re ever going to afford a house. And I don’t want them moving back with me, if I can help it. Maybe one. Anyways, 

Katelyn: we’ve got a favorite. 

Pete: Yeah, well, maybe. But you know, they’re all my favorites. So anyways yes, yes. But you know, when, when we look at what’s going on with respect to supply versus demand, it really is affecting different market segments more than others, isn’t it?

Katelyn: Yes, it is. Let’s look at the benchmark prices actually. Let’s look at the benchmark prices for each of the segments. So let’s start off with the detached. The detach is actually up 14%. 

Pete: So detached are up 14% and you know, the good thing about looking at a benchmark price as opposed to an average is the average isn’t going up nearly as quickly as the benchmark is because we’re just selling more and more of the lower cost inventory, the lower cost supply, which keeps the average going up a little bit slower than the benchmark price was.

So, yeah, as Kate mentioned, detached are up 14.5 or sorry, 14% the semi detached, which is not, not townhouses, but like a half duplex, these kinds of places. There’s not a lot of sales in those but there’s even less inventory. Like we saw in March, we saw a sales to listing ratio of the semi detached market of about 96%, which is like, you know, if you’re got a semi detached and you listed at you had a 96% chance of selling it. So it was that market, especially, like I said, it’s a small market, but that market performed really, really well. But then as you get into the cheaper stuff, I hate using the word cheaper, but it really is. I mean, when you look at townhouses and apartments, they’re really the ones that have increased the most, right?

Katelyn: Oh, well, townhouses the most, actually. It’s increased up to 20% compared to what it was last year. Yeah. Yeah. So that’s about $448,000 actually. 

Pete: Yeah. And, and apartments are up 17%. So what’s interesting is, you know, once in a while you hear people saying we’re building a, you know, we’re always being forced to build too many of these multi resident, you know, like there’s a huge market for these, especially at times like this, when, you know, people are viewing interest rates are being high.

I don’t think they actually are high. I mean, if you look at them, Historically, these are pretty normal rates, but I guess when the expectation is that they’re going to be coming down you know, people don’t want to spend money on the million dollar properties and those ones are really still having a bit of an issue, right?

We’re seeing lower inventory in them, but… 

Katelyn: Exactly. Anything over the $700,000 mark is having the issues of selling right now. 

Pete: Yeah. It’s almost like we have two markets in Calgary, you know, like there’s, there’s the market under $600,000 or $700,000 and then the market over that, and they’re not the same.

So one market’s acting entirely different. The other one way to tell that is of course, when you look at different areas of the city. 

Katelyn: Yeah, exactly. So let’s talk about the different areas of the city right now. So the area that’s actually doing the best, that’s at an increase of pretty much 25% of that benchmark price from what it was last year is the East.

So we’re talking Forest Lawn area what else is in that area? Dover. Yep. 

Pete: Pembroke. Yes. All that kind of, yeah, and that, that stuff. And again, it’s got to do with the value of those properties. You know, they’re, they’re affordable. You know, so I should say that more affordable, not cheaper, but the more affordable inventory is the stuff that’s boy, I tell you, that’s where the excitement is right now.

Of course, if you look downtown, we’re only up about 5.5%. So compared to 25% and this, I always think this is interesting being in real estate for as long as I have, I’ve been in real estate longer. I’m probably real estate longer than even a life. 

Katelyn: Almost. 

Pete: Yep.

I’ve been in real estate two thirds of your life, over two thirds of your life I’ve been selling real estate. Yeah. I’ll let, I’ll let people figure out how old Kate is at that because I know, I know she looks like she’s 18, I know she looks like she’s 18, she’s not, she’s way older. 

Katelyn: Yeah, I am very much way older than that.

Pete: Anyways sorry, where were we going? We were in the middle of saying something. 

Katelyn: Oh, you were talking about the city center. You were talking about the prices there. 

Pete: Yeah. But I have no idea where I was going. 

Katelyn: You were talking about real estate and how, you know, it’s funny that I’ve been in real estate for this long.

Pete: Yes. What I was saying was it’s interesting to me that, you know, years ago, people always say, well, whatever you do, don’t ever buy in Forest Lawn or Dover, whatever. Like even as an investment property, you know what? I always said the rents there are as high as anywhere else. And people that did invest in places like Forest Lawn and Dover have actually seen the biggest equity gain of anywhere in the city.

So it’s like, it’s actually, I believe it’s still a good area to invest in, especially when you see what they’ve been doing in Forest Lawn. With respect to international avenue and that kind of stuff. So yeah. Gentrifying the neighborhood a little bit. We’ll see where it goes. But anyways, getting a little bit off topic.

Just in terms of some Trudeau bashing, I was watching the news again this morning, and he’s throwing another hundreds of millions and billions at this problem. I think, he’s got, he’s throwing everything at it but the kitchen sink. I think you know, duck if you see something in the next little while, because it might be the kitchen sink.

The reality is what we really need is immigration reform, you know, especially in the next little while where we’re, we’re, you know, purposely bringing in people that can build houses and, and kind of limiting it a little bit to, to stuff like that, but, and of course, you know, reducing the gatekeepers, I think, you know, I think I’m showing my cards here, but I think Poilievre on track in terms of, you know, reducing the amount of red tape and stuff like that.

It’s hard to build a home now in Calgary or in Alberta or in Canada. There’s just so many hoops you have to jump through and so many forms to fill out and that kind of stuff that it’s, we’ve made it really, really hard to do. So anyways, until that happens, I don’t see the market changing too much in the next little while.

What we are still seeing is a lot of people moving here from. Ontario and Vancouver. And so, I think prices will continue to escalate for a while. I did do a report this morning for some other people where and it’s a report that I normally send out every Thursday. I’m a day late this week.

But where I look at sales to listing ratios on a weekly basis, and I did note on there that we’ve seen, we actually are seeing higher inventory levels now in in detached houses and in townhouses than we’ve seen all year. So inventory is very slowly starting to climb up a little bit. 

Katelyn: That’s good to hear.

Pete: It’s hard to tell this soon whether that’s a blip or the beginning of a trend, but. Time will tell if you want to know what’s going on in your neighborhood, though, or your type of home get ahold of Katelyn or me. We’re happy to help you anytime, whether it’s a bungalow in Beddington or a two story in Tuscany or a Condo in Canyon Meadows.

Wow, that was Yeah, yeah Anyways, no matter where you’re living or what kind of place you’re living in if you want to track your entire Or track your market for your type of home. The best idea is like I said get a hold of us Let us know what it is our email our emails will be on this video here somewhere I’m sure Marley when she edits this we’ll we’ll put them probably right here Here?

Here? Here? No, no, I think here. Here? This is the best place, like between us. We’ll see what Marley does, but you can email either one of us with, like I said, the type of home you’re living in, whether it’s a bungalow or two story or a four level split, where you are in the city and that kind of stuff, and then we’ll set you up with a report that is just Like narrowly defined to, to what your place is.

You can really start to watch it and see what’s going on. And then the other thing I’d recommend is if you’re considering moving even in six months or a year, but you want to start watching the market that you’re going to be buying into, we can do the same thing there as well. So Katelyn and I actually really like doing reports.

We like charts and graphs and, and understanding what’s going on in different market segments. So by all means, get in touch with us and we’re we’re happy to help you with that. That being said thanks for watching our little market update. Don’t forget to like, we got, we got a like and then 

Katelyn: Subscribe, share, comment, 

Pete: Four things.

Katelyn: Yes. Yeah four things, got to mention all the things. 

Pete: Okay. So if you like and you subscribe and you share and you comment. lunch with me or Kate, your choice. So on us, that’s all you got to do. Like one person will do like, imagine we had like 1000 people did that. I don’t imagine we had 1000 people watch our video.

But no, if you do that, you we’re going to enter you into a draw. to have lunch with Kate or me. So, yeah, and I know it’s going to be. Yeah. And it’s like, no one’s going to choose me, but it’s all good. It’s all good. Anyways. Thanks again for watching until next time. Call us anytime. We’re happy to help.

Thanks so much. 

Hey, and Katelyn just reminded me, this is like an add on to our little video, a little add on Kate reminded me, we forgot to talk about the highest price sale and the lowest price sale that happened in Calgary so far this year. So which one do you want to do? 

Katelyn: I’ll do the lowest price sale.

Pete: Okay. If you’ll do that, then I’ll do the highest price and you’ll do the highest. That makes sense. Yeah. That makes Yeah, we’re such logical, my, such logical people. 

Katelyn: So the lowest price to sell was, I feel like we talk about this area often when we are talking about this segment. It’s sold for under, you can still buy something for under $130,000 here in Calgary. If you can believe that. It’s sold in Chinatown. It was a 300 something square foot, you called it a walk in closet. 

Pete: It’s basically a walk in closet with a kitchen and a bathroom in Chinatown. 

Katelyn: Yeah. And it’s sold for $128,000.

Pete: $128k. Can you imagine that? Like, and it kind of, it’s, I was thinking it’s kind of cool because it’s about the same size as like, you know, your, your average travel trailer. Yes. And it’s about the same price too, except it’s just not mobile. Anyways. Yeah. And then the most expensive one sold in Lakeview, it was a gorgeous home. Like it really was. It was beautiful. That one sold for $5.2million. And what I thought was interesting about that one too, was the realtor’s name was something. I can’t remember her first name. Do you? 

Katelyn: Was it veronica? 

Pete: And then her last name though, was interesting to me as a Dutch guy because her last name was Housman. Which is literally translated houseman. So, but a houseman in Calgary is, or in Holland actually, is like a farmer that owns his own farm or something like that. It’s a particular designation. But it’s interesting that there’s a realtor named houseman. I thought it would be even better if it was a houseman.

Yeah. Yeah. Houseman the housewoman, you know, but anyways, we’ve promoted her name long enough now. Again, I’m Pete de Jong. This is Katelyn Brecio. We’re with Remax Professionals. Our numbers and emails and everything else will appear above or below our names or above and below our video below, probably below.

Yeah. Anyways, again, call us anytime. Happy to chat. 

Katelyn: Bye guys. 

Pete: Bye.

March reflects strong seller’s market and price increases

March sales rose to 2,664 units, a 10 per cent year-over-year gain and much higher than long-term trends. While new listings did pick up over last month, the 3,172 units were still below what we typically see in March and not enough relative to sales to drive any change in the supply situation. In March, the sales-to-new listings ratio rose to 84 per cent, and the months of supply fell below one month.

“We have not seen March conditions this tight since 2006, which is also the last time we reported high levels of interprovincial migration and a months-of-supply below one month,” said Ann-Marie Lurie, Chief Economist at CREB^®. “Moreover, we are entering the third consecutive year of a market favouring the seller as the two-year spike in migration has driven up demand and contributed to the drop in re-sale and rental supply. Given supply adjustments take time, it is not a surprise that we continue to see upward pressure on home prices.” 

Inventory levels have declined across properties priced below $1,000,000, with the steepest declines occurring for homes priced below $500,000. In March, there were 2,532 units in inventory, 22 per cent lower than last year and half the levels we traditionally see in March.

In March, the unadjusted total residential benchmark price rose to $597,600, a two per cent gain over last month and nearly 11 per cent higher than last year. Prices have increased across all property types, with the most significant year-over-year gains occurring for the relatively more affordable row and apartment-style homes.    

Detached

Detached home sales rose in March but were likely limited by the level of new listings coming onto the market. New listings in March were 1,386 units, compared to the 1,151 sales, causing the sales-to-new listings ratio to rise to 83 per cent. Inventories also remained relatively stable compared to last month but were 24 per cent lower than last year’s levels and nearly 60 per cent lower than long-term trends for March. Inventory levels dropped across all price ranges, but the most significant fall was in the lower price point. Overall, 71 per cent of the available inventory in March was priced above $700,000. 

Low inventories compared to sales caused the months of supply to drop below one month, driving further price gains. The unadjusted detached benchmark price rose to $739,700, a monthly gain of nearly three per cent and a year-over-year gain of 14 per cent. The largest year-over-year gains occurred in the most affordable North East and East districts.

Semi-Detached

Supply availability continues to weigh on the semi-detached sector of the market. In March, 260 new listings were met with 250 sales, causing the sale-to-new listings ratio to rise to 96 per cent. This prevented inventories from improving, and the months of supply dropped below one month. Inventory declines have been driven mainly by properties priced below $600,000.

Limited supply and growing demand drove further price gains in March. The unadjusted benchmark price reached $658,000, nearly three per cent higher than last month and a 14 per cent gain over last March. Prices rose across all districts in the city, with year-over-year gains ranging from a low of 11 per cent in the highest-priced area of the City Centre to 25 per cent in the lowest-priced market in the East district.

Row

Both sales and new listings rose in March. However, with 536 new listings and 449 sales, the sales-to-new listings ratio rose to 84 per cent, preventing any significant monthly change in inventory levels. With 355 units available, inventory levels were 12 per cent below last year’s and 53 per cent below long-term trends for March. The decline in inventory levels was driven by properties priced below $400,000, as inventory levels rose 35 per cent for units priced above $400,000. 

The unadjusted benchmark price trended up in March, reaching $448,700, a monthly gain of nearly three per cent and over 20 per cent higher than levels reported at this time last year. The higher-priced City Centre reported the slowest growth in benchmark prices, with the highest growth reported in the city’s most affordable districts.

Apartment Condominium

Sales in March reached 814 units, contributing to the first quarter’s record-high sales of 1,940 units, nearly 31 per cent higher than last year. New listings also improved throughout the first three months of the year, but with a March sales-to-new-listings ratio of 82 per cent and a months-of-supply of one month, conditions favoured apartment condominium sellers. 

Demand for lower-priced homes has supported the growth of apartment-style properties, but the tight conditions have also contributed to further price gains. In March, the benchmark prices reached $337,700, over two per cent higher than last month and 17 per cent higher than levels reported last March.

REGIONAL MARKET FACTS

Airdrie

March reported 203 sales and 218 new listings. While both new listings and sales improved, with a sales-to-new listings ratio of 93 per cent, inventory levels were 22 per cent below last year and 56 per cent below typical March levels. 

With less than one month of supply, it is not surprising that we continue to see upward pressure on home prices. In March, the benchmark price reached $540,400, a monthly gain of two per cent and a year-over-year increase of over nine per cent. Prices improved across all property types, with stronger year-over-year gains for the relatively lower-priced row and apartment-style products.

Cochrane

Following a slower start to the year, sales in March rose to nearly the same level of new listings coming onto the market, pushing the sales-to-new listings ratio up to 99 per cent. This also contributed to further declines in inventory levels, and the months of supply dropped to just over one month. 

As of March, the total residential benchmark price reached $555,300, a monthly gain of over one per cent and a year-over-year increase of nearly 12 per cent. Prices rose across all property types, and detached prices pushed above $650,000 for the first time.

Okotoks

Okotoks continues to struggle with supply as the 71 new listings that came on the market this month were met with 65 sales, preventing any improvement in inventory levels. There were only 54 units available in March, a year-over-year decline of 10 per cent and nearly 70 per cent below long-term trends for the month. 

Limited supply and strong sales caused the months of supply to fall below one month, and March was the lowest March reported since 2006. Persistently tight conditions drove further price growth this month, as the total residential benchmark price rose to $610,700, a monthly gain of one per cent and a year-over-year increase of nine per cent. Prices have been rising for all property types, with the most significant year-over-year gains occurring for semi-detached and row properties.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

https://www.creb.com/News/CREBNow/2024/March/Low_inventory_and_high_demand_drive_price_gains_in_February/

Hey, everyone. It’s Pete de Jong here with Remax Professionals with a market update for Calgary, March 2024. So what I’m going to do today is I’m going to go into the past a little bit and talk about what’s happened over the last four years. And then we’re going to talk about what’s going on today. And then I’m going to peer into my crystal ball a little bit and see if I can tell you what’s going to happen in the next couple of years.

If we go back four years ago, back to 2021, the average price in Calgary was Just over $500,000. At the time, it was like $502,500 or something like that. In 2022, it took a pretty big jump. And the average, this is not, sorry, this is not average price. This is benchmark price for a detached home. So it went from $500,000 up to nearly $600,000.

In 2022, we hit $596,400. So a pretty substantial jump between 2021 and 2022. In 2023 it went up a bit more. The average or sorry, the benchmark price for a detached home at that time was $636,000. So went up another $40,000 and then in February of 2024, it hit $721,300. So we’ve seen some pretty substantial price increases over the last four years.

What’s going on today and what’s going to happen in the next few years. Stand by I’ll get right to it. So here’s what’s going on. In Feb, or here’s what happened in February versus February of last year sales increased pretty dramatically, almost 25%. It’s up about 23% over February of last year.

And good news is inventory or at least new listings. I shouldn’t say inventory new listings went up a little bit too. They went up about 14%. Now, of course, when listings go up 14% and sales go up nearly 25% we’re still going to have a drop in inventory, which is still increasingly a bigger problem for buyers.

I heard a stat a while back. I have no idea how to substantiate this, but there’s something like nine people moving into the, into the city for every house being built. And when I see what the market’s doing it does seem to, to back that that idea up. So sales increased by 25%, just about new listings up about 14%.

Inventory dropped by about 14% because sales were still outpacing new listings, which means our months of supply is just over a month. It’s actually 1.1 months of supply. And if you remember last year, if you watched any of my market updates last year, I was complaining about low inventory all year when we had about a two month supply.

Now we’re down to just over a month. I don’t know how long that’s going to last. That could actually come to to a month or even less soon as well. So we’re seeing some pretty good price increases across the market detached and, half duplexes are both up around 13%. Townhouses are up about 19% and apartments are up about 17%.

So again, it’s always the lower end of the market that’s experiencing the best or at least the biggest increases in, in prices and stuff like that. So even within. Those markets, like if you look at the condo market, for example the condos between $200,000 and $300,000, you’re seeing an absorption rate over the last three weeks of over a 100%, like 108%, 110% week over a week.

And eventually that price range is just going to disappear. I think. The way things are going, but then you get to condos that are priced over $600,000 and you’re seeing an absorption rate of only 17%. So no matter what you’re thinking of buying or selling, talk to an agent that actually watches the market a little bit because you’d hate to go into you know, looking at a condo that’s worth $650,000 and thinking the condo market is crazy because that’s what I keep hearing. It’s only the lower end of the market that is. The higher end of the condo market is really not doing that well, especially not compared to the lower end of the market. 

So if you want to know what’s going on in your market whether it’s a market that you’re looking to sell in or a market that you’re looking to invest in give me a shout. I’m happy to give you all the information you could ever want. I love doing that. I love over overloading people with information even, because I do believe that information is power. And if you want to make good decisions in a crazy market like this, you want to have lots of information and know what’s going on In terms of the future, I don’t think anything’s going to change for the next year or two anyways, it’s going to take a while and probably some, you know, different policies, even by governments and things like that to To enable inventory to catch up to the amount of demand that we have right now. So I expect prices to continue to escalate in Calgary.

At least in the double digits here, at least, can you imagine triple digit? No, I expect price increases to continue in double digits here in, in Calgary over the next year or two, you know, something between 10% and 15%. I don’t actually have a crystal ball. I don’t know the future. But that’s what I’m predicting at this point.

And so if you want to know what’s going on in your market, like I said, whether you’re buying or selling, get in touch with me, you can call me or text me anytime on my cell at 403-818-7310, or you can email me at Pete at pete@280keys.com. I’m aways happy to talk real estate. I’m also always happy to talk politics and religion too, by the way, or philosophy.

So I’m not afraid to talk about anything. As you can probably tell , give me a shout. I love to have good conversation over a cup of coffee, whether it’s real estate or not. And so I look forward to hearing from you. Alright, thanks so much and have a great day.

Low inventory and high demand drive price gains in February

New listings continued to rise in February, reaching 2,711 units. However, the rise in new listings supported further growth in sales, which increased by nearly 23 per cent compared to last year for a total of 2,135 units. The shift in sales and new listings kept the sales-to-new listings ratio exceptionally high at 79 per cent, ensuring inventories remained near historic lows. Low supply and higher sales caused the months of supply to fall to just over one month, nearly as tight as levels seen during the spring of last year.

Purchasers are acting quickly when new supply comes onto the market, preventing inventory growth in the market,” said Ann-Marie Lurie, Chief Economist at CREB^®. “It is this strong demand and low supply that continues to drive price gains in Calgary. The biggest supply challenge is for homes priced under $500,000, which saw inventories fall by 31 per cent compared to last February. At the same time, we are starting to see supply levels rise for higher priced homes supporting more balanced conditions in the upper end.

In February, the unadjusted benchmark price was $585,000, an over two per cent gain compared to last month and over 10 per cent higher than levels reported at this time last year. Our most affordable East district is experiencing the highest year-over-year price growth at 25 per cent, while the relatively better-supplied City Centre has reported the slowest price growth in the city at under five per cent.

Detached

In February, 1,195 new listings came onto the market, of which 75 per cent were priced over $600,000. While new listings did improve over last month in line with seasonal expectations, levels are still below typical levels for February. At the same time, sales in February rose to 954 units, a year-over-year gain of 20 per cent. The growth in sales was driven by where we saw listings growth, but with a sales-to-new listings ratio of nearly 80 per cent, inventory levels were near record lows for February. 

Exceptionally tight market conditions drove further price growth. In February, the unadjusted detached benchmark price rose to $721,300, nearly three per cent higher than last month and over 13 per cent higher than last February. While prices rose across every district, the most significant year-over-year gains occurred in the North East and East districts.

Semi-Detached

Last month’s rise in listings compared to sales was short-lived, as the 223 new listings this month were met with 191 sales, driving up the sales-to-new-listings ratio to 86 per cent. This prevented any significant change to the low inventory situation and caused the months of supply to fall to just over one month. 

In February, the unadjusted benchmark price reached $639,100, a monthly gain of over two per cent and 13 per cent higher than last year. Year-over-year price gains ranged from a low of 10 per cent in the City Centre to over 26 per cent in the East district.

Row

New listings rose to 457 units in February, contributing to the year-to-date increase in new listings of 22 per cent. The rise in new listings supported sales growth, preventing any significant change to the low inventory situation. For the second consecutive month, the months of supply were below one month. 

The exceptionally tight market conditions have contributed to strong price growth for row properties. In February, the unadjusted detached price reached $436,500, over 2 per cent higher than last month and nearly 19 per cent higher than levels reported last February. Prices rose across all districts, with the highest growth occurring in the most affordable districts.

Apartment Condominium

Sales in February reached 638 units, contributing to the year-to-date sales increase of 39 per cent. Relative affordability has supported the strong demand for apartment-style homes, and sales growth has been possible thanks to the continued growth in new listings. Inventory levels trended up over the last month in line with seasonal expectations. However, inventory levels declined by 12 per cent compared to last year, ensuring the market continued to favour the seller with just over one month of supply.

Persistently tight conditions continued to place upward pressure on home prices. Prices have steadily increased since January of last year, and as of February, they reached $329,600, a 17 per cent gain over last February. Prices rose across every district in the city, with year-over-year gains surpassing 19 per cent in all districts except the City Centre, which reported a year-over-year gain of 13 per cent.

REGIONAL MARKET FACTS

Airdrie

New listings in Airdrie improved in February. However, with 182 new listings and 135 sales, the sales-to-new listings ratio remained high, and inventory levels eased over last year’s low levels. Inventory levels are half what we typically see in February and have not been this low since 2006. 

The rise in sales compared to inventory levels caused the months of supply to drop to just over one month. Airdrie has struggled with limited supply over the past several years, driving home prices. In February, the unadjusted benchmark price reached $529,700, over one percent higher than last month and 10 per cent higher than the $479,700 price reported last February.

Cochrane

New listings rose to 105 units in February, the highest monthly total seen since July last year and contributing to the year-to-date gain of 22 per cent. At the same time, February sales improved over last year, with 65 sales. 

With a sales-to-new listings ratio of 62 per cent, we did see some growth in inventory levels compared to last year. However, inventories remain well below what is typical for this market. Nonetheless, the months of supply remained relatively low for this market at two months, supporting further price growth in the town. As of February, the unadjusted benchmark price reached $548,300, an improvement over last month and over 11 per cent higher than levels reported last year.

Okotoks

For the second month in a row, new listings improved in Okotoks compared to last year. However, as sales also improved over the past two months, inventory levels in February remained stable compared to last month and only slightly higher than last year’s levels.  Inventory levels are near record lows for the month and are 63 per cent below long-term trends.

Okotoks has struggled to add enough supply to keep pace with demand, keeping conditions tight and driving home prices. As of February, the unadjusted benchmark price reached $605,500, nearly three per cent higher than last month and a 10 per cent gain over last year at this time.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

https://www.creb.com/News/CREBNow/2024/March/Low_inventory_and_high_demand_drive_price_gains_in_February/

Hey everyone, it’s Pete de Jong here with REMAX Professionals with a market update for January of 2024 versus January of 2023. And there is some good news. New listings are up 15.4%. But wait a minute. Why is inventory still down? Hold on one second. I’ll tell you.

All right. So before we get into that, you’re probably wondering, Pete, why are you in your car? And where is Katelyn? Well, Katelyn of course, is working on her tan. That’s what she does. And when she’s not in Mexico or Los Angeles. Now she’s actually even further out. She’s in the Philippines, but I’m sure she’s on a really nice beach and having a really nice time while I drive around like mad trying to get the work done of myself and her and and having trouble keeping up.

But that’s why I’m not in the office and that’s why Kate’s not here. But let’s go back to the market. So like I said, new listings are up 15.4% but inventory is down. And the reason that happened is sales are up. Almost 38% in January of 2024 versus last year. So even though new listings are up a little bit, sales are up even substantially more, which of course drives inventory down.

So inventory is actually down over 10% from last year. And our month supply is, you know, get this like for the whole city we’re down to 1.3 months. So whatever that works out to a month and a week or something like that. If we stopped listing houses, we’d be done in a month. And we’d have nothing left to sell.

Hopefully the number of listings does continue to improve. I doubt the number of listings coming on will at any time soon start to outpace demand. But but that’s what’s driving prices up. And that’s what’s making it making it fun to sell, impossibly hard to buy. And we’re seeing so many of these multiple offers happen and stuff like that.

So, in general, the city’s pricing is up to 10% from last year, 10.0% actually, but most of that’s being driven in the townhouse and apartment style properties. So in terms of houses semi detached houses, you know, we’re up 11-12%, but it’s really, when you look at the row houses which are up about 20% and apartments that are up 19%. That’s really where the price growth has happened. And it makes sense. I mean, if you know, prices are up this much and interest rates are up, it’s the smaller places and stuff that are going to be the most attractive to the most number of people.

So that’s what’s going on across the city. If you want to know what’s going on in your neighborhood, by all means, give me a shout. I’m happy to help you. There’s a lot of different ways I can do it. As I’ve mentioned before, I can send you just a monthly snapshot of what’s happening in your area, whether it’s, you know, Sunalta or Tuscany or Whitehorn.

Or if you say, I actually want it narrowed down a little bit more, Pete, I want to know what my, what my bi-level in Ogden. I can send you the bi-levels in Ogden once a month or wherever you are. So yeah, feel free to give me a shout anytime. I’m happy to set that up for you. It’s free of charge and there’s no obligation, but you will be the best informed person in your neighborhood if you want to work with me.

Anyways good to see you all again at least from here. I guess I’m not seeing you all. I guess you’re all seeing me. Which I’m not sure is good, but especially not with, without Kate here, but regardless I hope she’s back next month and she could well have been back and left again.

Cause again, like that’s what Katelyn does. She goes on holidays and goes to beaches, but I guess that’s how you get a tan like Katelyn. So anyways give me a call with any questions. I’m happy to chat real estate anytime. We’ll talk to you later.

January sees strong sales fueled by boost in new listings

January sales rose to 1,650 units, a significant gain over last year’s levels and long-term trends. The growth was possible thanks to a rise in new listings totalling 2,137 units in January. New listings rose for homes priced above $300,000, but the largest gains occurred for homes priced above $700,000.

The rise in new listings relative to sales did little to change the low inventory situation in the city. With 2,150 units in inventory, levels are near the January record lows set in 2006 and are nearly 49 per cent below the long-term average for the month.

“Supply challenges have been a persistent problem since last year. This month’s gain in new listings has helped provide options to potential purchasers, supporting sales growth. However, the growth in sales prevented any significant adjustments in supply, keeping conditions tight and supporting further price growth,” stated Ann-Marie Lurie, Chief Economist at CREB^®.

The months of supply in January was 1.3 months, falling over last month’s and last year’s levels. The persistent tightness in the market contributed to further upward pressure on home prices. The unadjusted benchmark price in January reached $572,300, a gain over last month and ten per cent higher than levels reported last January.

Detached

A boost in new listings helped support stronger sales this month. However, with a sales-to-new-listings ratio of 77 per cent, there was minimal change in the low inventory situation reported in the detached sector. New listings rose for all homes priced above $500,000, but the largest gains occurred in the over $700,000 market segment. Low inventory levels compared to sales prevented any improvement in the months of supply, which at 1.4 months was lower than levels reported last month and last January.

The exceptionally tight market conditions continued to drive further price growth. In January, the unadjusted detached price reached $702,200, nearly one per cent higher than last month and nearly 13 per cent higher than prices reported last year. Year-over-year price gains ranged from a low of 10 per cent in the City Centre and South East districts to a 27 per cent gain in the East district of the city.

Semi-Detached

With 223 new listings and 131 sales, the sales-to-new listings ratio fell to 59 per cent, the lowest level reported since 2020 and significantly improved over the 82 per cent average reported in 2023. The sudden shift did cause inventories to improve over the last month, but they remain well below long-term trends.

The unadjusted benchmark price in January was $625,000, slightly lower than last month but over 11 per cent higher than last January. The monthly decline was driven mainly by adjustments in the higher-priced districts of the West and City Centre.

Row

Like other property types, new listings and sales rose in January over levels reported last month and last year. However, with 322 new listings and 297 sales, the sales to new listings ratio remained exceptionally high at 92 per cent. This contributed to further reductions in inventory levels, and the months of supply once again fell below one month.

Limited supply and strong demand contributed to a rise in prices. In January, the unadjusted benchmark price reached $426,400, up over last month and nearly 20 per cent higher than levels reported in January 2023. While year-over-year prices are higher in every district, the West and City Centre districts saw unadjusted benchmark prices ease slightly over December.

Apartment Condominium

Apartment-style properties continued to see the most significant gain in sales activity, rising to 488 sales in January, a year-over-year increase of 54 per cent. This was possible thanks to the growth in new listings. However, the gain in listings did little to supply levels; with 682 units, inventories were 40 per cent below long-term trends.

Tight market conditions continued to contribute to further price gains. In January, the unadjusted benchmark price reached $324,000, nearly one per cent higher than last month and 19 per cent higher than last January. Prices rose across all districts, with the largest year-over-year gains occurring in the most affordable districts of the North East and East. 

REGIONAL MARKET FACTS

Airdrie

Stronger detached and row sales were enough to offset pullbacks in the semi-detached and apartment sectors, causing total residential sales to increase over levels reported last January. This, in part, was possible thanks to a boost in new listings. However, the boost in new listings and sales prevented any significant shift in inventory levels, which was half of the levels typically seen in the market.

While conditions remained tight, the unadjusted benchmark price remained stable over the last month but was nearly 10 per cent higher than levels reported in January 2023. The most substantial price gains have occurred for apartment-style homes, which are the most affordable property type.

Cochrane

Eighty-three new listings and 70 sales occurred in January, keeping the sales to new listings relatively high at 84 per cent. This prevented any significant change in inventory levels compared to last month but caused the months of supply to fall below two months once again. The drop in the months of supply is a shift over the last four months, where the months of supply was over two months.

Despite recent tightening, the unadjusted benchmark price did ease slightly over last month’s levels. Overall, the unadjusted benchmark prices across all property types remained over 10 per cent higher than last January.

Okotoks

Both sales and new listings rose in January compared to last month’s and last year’s levels. This caused the sales to new listings ratio to fall to 75 per cent, which was still relatively high but an improvement over the 86 per cent average reported last year. Nonetheless, the sudden gain in new listings was insufficient to cause material changes to the low inventory levels.

With just over one month of supply, conditions remain tight in Okotoks, driving prices up. In January, the benchmark price reached $589,600, higher than last month’s and year’s levels. Year-over-year price growth occurred across all property types, with gains ranging from a high of 15 per cent for row properties to a low of six per cent for apartment-style homes.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

Katelyn: I didn’t really that was fine. Oh, now we’re like the same height. 

Pete: Well, I sit down and you stand up. And I’ll sit right towards the front. Yeah, when I sit and you stand, we’re the same height.

Katelyn: Wow. Okay. I feel tall now. It doesn’t even look like I’m standing. 

Pete: Yeah. All right.

Let’s go. Hey everyone. It’s Pete de Jong and Kate here from Remax Professionals. And we’re going to tell you a little bit about what happened in November of 2023, because it’s now December. It’s almost Christmas. Unbelievable. Anyway, so here’s what’s going on, and it’s a lot of what has been going on except that it seems like there’s, there’s even a stronger division between what’s going on sort of in the price range above $700k and below $700k.

So, what we’re seeing in general though is that sales are up. November this year versus November last year is what we’re doing here. Sales up about [00:01:00] 9% which is crazy. Because what you’re seeing is you’re seeing new listings come up, but the new listings are all sort of piling up in the high price range and inventory is still kept down because the lower price range is still selling.

So it’s still one of those situations where under $700k, you can’t, we can’t keep inventory over $700k, you’re still able to find stuff. So, like I said, new listings are up 38.2%, but what’s inventory at?

Katelyn: Inventory is down 4% year over year. 

Pete: Crazy! Crazy how you can have new listings up 32% and you’re still short of inventory from last year. Goes to show you how pronounced this problem is. 

Katelyn: So what does that look like in terms of months of supply? 

Pete: Yeah, so in terms of months of supply, we’re at like 1.7 months. So, we’re, we’re just over a month and a half supply right now. Yeah. So, that again means that if we were to stop listing stuff in a month and a half, we’d be out of places to sell.

So by all means, if you’re thinking of selling, now’s a good time. Let me, let me interrupt though and just say this because a lot of [00:02:00] times what people are asking me and you probably as well, when you’re at, you know, starting to see some Christmas parties and get togethers and stuff, is there like, “Should I wait for price for the interest rates to come down?”

Yes. And my advice is. It’s definitely not because what I think you’re going to see, there’s rumors now of interest rates maybe coming down half a point or a quarter of a point, whatever in the spring. And I think what you’re going to see is you’re going to see the interest rate come down half a point and prices go nuts because everyone’s going to jump into the market going, here’s my last chance.

So I think especially in Calgary, Alberta, you know, you’re probably better off buying. Now and then just refinancing in a year or something like that, then then thinking I’m going to wait till interest rates come down because then you’re going to see the prices go up and it’s going to cost you even more that way.

I think so. Time will tell. 

Katelyn: It’s a very educated guess. 

Pete: I think so. Yeah, time will tell. But Yeah, so right now in the detached market, we’ve still seen prices go up, right? 

Katelyn: Yeah, prices are up about 13% compared to last year. [00:03:00] But sales are down 20% and just like Pete was saying, that’s because anything that’s over that $700k benchmark, it’s just not selling.

Pete: Yeah, it’s not selling. So, same goes for the detached market, same kind of thing. We’ve seen prices come up about 12.3%, but a lot of that detached market is even up over 700%. Like, when you’re looking at the infills and stuff like that. Because don’t forget the semi detached, I mean, market is what I meant to say.

So, semi detached is not like townhouses. We’re talking about those half duplex infills and stuff that you’re seeing going up all over downtown. So, but in terms of row houses, now part of that is because the prices were really not doing well last year at this time. And I remember saying that, just going, I can’t believe townhouses are still this cheap.

But they’ve taken off, they’ve rocketed up. Because again, they’re under $700k, and we’ve seen the price of those come up like 21%. But what’s the area that Pete’s the most excited about, Kate? 

Katelyn: Pete is the most excited about, because he’s been talking about this since last year, is the apartments. So [00:04:00] apartments are up by 17.8%, and supply is down 21%. 

Pete: Yeah, so, so, I mean, if, if price increases are as a result of a low supply and high demand, here’s what’s going on in apartments, and I’m still selling apartments because I’m telling you if you want to get a return, you want to get an ROI on some real estate, you can still buy a condo relatively cheap and get a great return.

So right now, we’re seeing supply down compared to last year by 21%, as you said. And sales are up 25%. So 25% increased demand 20% decreased supply. I think prices might be going up. You know, for, for at least the next year or so. So I think that’s going to be a place if you’re looking to invest, I think there’s still room, like even in terms of the whole downtown, which a lot of it is apartments.

You know, it’s been hurt, right? Like when we saw the oil and gas prices crash and [00:05:00] people got sent home from COVID and not really hired back at the pace they were, they’re roaring back, but it still isn’t where the rest of the city is at, right? 

Katelyn: Exactly. Yeah, so when we’re looking at parts of the city, City Centre is the lowest that’s doing, compared to all the other 

Pete: In terms of price increases.

Katelyn: Yes, exactly. In terms of price increases, it only went up about 6%. 

Pete: Yeah, and you compare that to like Forest Lawn and Dover and stuff, which is the most exciting area of the city to be in right now, they’re up over 21%. So, it kind of, you know, to think about what’s going on in the market, it’s simply this, is if you’ve got if you’ve got a cheaper place, anything under $700k, you’re part of the most exciting thing to happen in Calgary in a long, long time.

If you’re at a million bucks, eh, it’s not as exciting. It’s still good. I mean, don’t get me wrong, but really the excitement is all in the east side, so Forest Lawn, Dover, Pembroke, Marlborough, and then in the northeast that’s the second most exciting area, right? 

Katelyn: Yeah, so that one’s up by 16%, so you’re talking [00:06:00] Tarradale, Martindale, Saddle Ridge, Castle Ridge.

Pete: Even the properties, right? 

Katelyn: Yes, yes, exactly. 

Pete: Rundle, Whitehorn Temple, Pine Ridge. Yeah. Yeah. So in terms of the cheapest place, though, and by the way, I have a great offer coming up. Oh. Stand by. This offer is unbelievable. I don’t even want to talk about it yet. I’m so excited. 

Katelyn: He’s so excited about it. 

Pete: Yeah, this is an offer just for you that are watching this video, and it’s crazy.

Crazy. Crazy. Crazy. Crazy. 

Katelyn: So the cheapest house to sell for the month of November was a loft, and you can still get something under $120k here in Calgary, which is, that’s still pretty surprising. 

Pete: Time to move here if you’re still in Vancouver. I know. Or Toronto. 

Katelyn: So it was sold by Ming Wang in Chinatown, and it was sold for $116k

Pete: Shout out to Ming Wang. And Catherine Chow sold the most expensive place in Calgary. Have I mentioned that I got a great offer coming in? Yes, you do. This is a great offer. Anyways, so Catherine Chow sold a place for $3.5M in Upper Mount Royal. Someone there knew [00:07:00] that if they don’t buy now, they’re going to pay more when interest rates come up.

So, they were smart and they bought something for $3.5M. Now, if you want to buy something for $3.5M, we’re happy to show them to you by the way, right? Oh, totally. Like, I don’t want to just be talking about the lower price stuff. We’re happy to show a million dollar properties as well.

So in fact, I’m heading to a home inspection at one pretty soon here. Anyways. So in the meantime, though, let me tell you about this exciting offer. You know it’s free. Oh yeah. Ask me how free, 

Katelyn: How, how free it’s? 

Pete: It’s actually. Absolutely free. 

Katelyn: Oh wow. 

Pete: Imagine that. 

Katelyn: Absolutely free. In this world? In this economy? 

Pete: In 2023, where everything is getting so expensive, I’m offering you something not just a little bit free.

No, not even quite a bit free. Absolutely free. Like ask how much this is going to cost anyone. 

Katelyn: How much? 

Pete: Zero. Wow. Zero. And on top of that, it’s valuable. So what I’m, what I’m offering you is, no matter where you live, as long as you’re in the [00:08:00] city, or Airdrie, Chestermere, you know close to the city, and you want to be able to track your market, maybe because you want to sell in a year or so, or maybe just because it’s free.

Fun to do right now because just watching your equity grow and your value of your property grow. All you do is send me a quick email and you can email me at pete@280keys.com. That’s “Pete” and then “@” the number is “280” and then “keys” like keys to your, because I’m St. Peter and I have the keys to your next kingdom. Oh, cringe, cringe. The kids would say that’s cringe, right? Yeah. Yeah. They would say, 

Katelyn: Is that what they say now? 

Pete: They would say, dad, you haven’t got a lot of riz. Anyways, if you’re, oh brother, anyways yeah, I’m so disappointed, wait till you see how disappointed my kids are when they hear me use words like Riz and Cringe, I mean no cap, they’re going to be so upset about it, anyways send me an email at pete@280keys.com and just tell me a little bit about your house. That’s all. Just email me. I don’t need your phone number, your name even, anything like that. But if you send me your [00:09:00] email address and you say, Pete, I have a little apartment in Forest Lawn or I’ve got a, I’ve got a 4,000 square foot place in Upper Mount Royal or wherever you want to be.

And what I’ll do is I’ll just keep you updated. Anyways, so just send me an email with what you’ve got and what you want me to track. Or even, you know, if you’re saying, well, I’m thinking about buying a two story in, in Saddle Ridge, I can just, I can just send you that so you can actually watch it and see what’s going on.

So it’ll be really, really good. For you there’s a thousand ways I can do this. I can do it by postal code, by neighborhood, or even just by style and price range, or whatever you want. 

Katelyn: And how much is it again? 

Pete: It’s actually free. Oh my gosh. Yeah, as in totally free. Yeah. Yeah. You don’t get, I mean, you don’t get anything else for free anymore.

You don’t get, you know, no soup, nothing. No. Anyway. So if you want that, or if you want to get in touch with Kate to show you around different homes in the city, or if you want to talk to me my cell number, I’m sure my editor will put it there or there or [00:10:00] there or there, but it’s 403-818-7310 or you can get a hold of Kate at 

Katelyn: Yes, my number is 403-615-2346.

Pete: Alright, awesome. Thanks for paying attention and feel free to take care of that absolutely free offer. It’s sincere. Like I very, I wouldn’t make up something like that. I would talk about free. It’s, it’s it’s valuable

Katelyn: In this economy, free is good. 

Pete: Yeah. Yeah. So get in touch with me and we’ll we’ll send you a report as to anything that you wanna see within like I said, the Calgary Calgary area. In the meantime, Merry Christmas. Hope you have a hope you have a great time with your family and friends. And if you have somebody in your neighborhood that you that you think is a little older, it might be lonely. Invite them over. Loneliness is a real real problem.

Everywhere. So make sure that those that are lonely in your in your community or in your church or in your office or your Mensa society or whatever you’re part of, invite them over and make sure they’re included [00:11:00] in in your Christmas festivities. Make sense? I don’t want to preach, but I just, you know, I like looking out.

Yeah. Anyways, thanks so much and we’ll talk to you in the new year. Bye guys. Merry Christmas.

Increased listings, strong sales, and price growth

New listings in November reached 2,227 units, nearly 40 per cent higher than the exceptionally low levels reported last year at this time. Gains in new listings occurred across most price ranges, but the most significant gains occurred from homes priced over $600,000.

Despite the year-over-year jump in new listings, inventory levels remained low thanks to relatively strong sales. With 1,787 sales in November, the sales to new listings ratio remained high at 80 per cent, and the months of supply remained below two months.

“Like other large cities, new listings have been increasing,” said CREB^® Chief Economist Ann-Marie Lurie. “However, in Calgary, the gains have not been enough to change the low inventory situation thanks to strong demand. Our market continues to favour the seller, driving further price growth.”

As of November, the benchmark price was $572,700, up over last month and nearly 11 per cent higher than November 2022. Year-to-date, the average benchmark price has risen by over five per cent.  

Detached

Limited supply choice for homes priced below $700,000 has been the primary cause of the decline in detached home sales. While November reported a marginal gain over last year, year-to-date sales have declined by 20 per cent. November saw a rise in new listings compared to the previous year, but higher-priced homes drove most gains. This has left the detached market with exceptionally tight conditions for prices below $700,000 and more balanced conditions for higher-priced homes. Overall, the month of supply remains exceptionally low at under two months.

Persistently tight conditions continue to cause further price gains in the detached market. As of November, the unadjusted benchmark price reached $699,500, a slight increase over last month and over 13 per cent higher than last November. While detached home prices are much higher than last year’s levels in every district, year-to-date gains are the highest in the most affordable districts of the North East and East. 

Semi-Detached

November saw a boost in new listings compared to last year, helping to prevent a year-over-year decline in inventory levels. However, inventory levels are still over 40 per cent below typical levels seen in November. With a sales-to-new-listings ratio of 77 per cent and a month-of-supply below two months, conditions remain exceptionally tight, especially for homes priced below $700,000. 

Despite tight conditions, benchmark prices remained stable compared to last month. However, at an unadjusted benchmark price of $628,700, prices are still over 12 per cent higher than last year. The year-to-date average benchmark price has risen by nearly seven per cent, with the largest gains occurring in the North East and East districts.

Row

New listings rose again this month compared to last year. The 370 new listings were met with 267 sales, and for the first time since 2021, the sales-to-new-listings ratio fell below 75 per cent. The jump in new listings was enough to support a gain in inventory levels compared to last month and last year. While inventories are still nearly half the levels we traditionally see, this did help cause the months of supply to push up to 1.6 months, a significant improvement from the less than one month of supply that has persisted over the past seven months. While conditions are much more balanced in the higher price ranges, there is less than one month of supply for homes priced below $500,000.

Despite the shift away from exceptionally tight conditions, prices still rose over the last month and last year. As of November, the unadjusted benchmark price reached $429,100, 21 per cent higher than last November and an average year-to-date gain of nearly 13 per cent.

Apartment Condominium

Thanks to the relative affordability of the apartment-style homes, sales continued to reach record highs in November, contributing to year-to-date sales of 7,487. With one month left in the year, sales have already surpassed last year’s record high. This, in part, was possible thanks to the growth in new listings. While inventory levels are similar to levels reported last year, with less than two months of supply, conditions still favour the seller, placing further upward pressure on prices. 

The unadjusted November benchmark price reached $320,100 in November, a monthly gain of over one per cent and a year-over-year increase of 18 per cent. Year-to-date price gains have occurred across every district in the city, with some of the largest gains arising in the lower-priced North East and East districts.

REGIONAL MARKET FACTS

Airdrie

Gains in November sales were not enough to offset earlier pullbacks, leaving year-to-date sales down by over 26 per cent over last year’s record levels. Much of the decline has been driven by the detached market, which has struggled with supply, especially in the lower price ranges. New listings in November did improve over last year’s levels. Still, thanks to the gain in sales, the sales-to-new listings ratio rose to 96 per cent, preventing any significant shift from the low inventory levels. 

With less than two months of supply, we continue to see upward pressure on home prices. In November, the unadjusted benchmark price rose over last month, reaching $524,500, a year-over-year gain of 11 per cent. Year-to-date price gains have been the highest in the apartment sector at 17 per cent, with detached and semi-detached prices rising by nearly six per cent.

Cochrane

With 87 new listings and 51 sales, the sales-to-new listings ratio fell to 59 per cent in November, the first time it fell below 60 per cent since 2020. Higher-priced properties have primarily driven the recent gain in new listings. Improved new listings compared to sales did help support increases in inventory levels. However, November inventory levels remain over 30 per cent below long-term trends.

Tight market conditions have supported further price growth in Cochrane. As of November, the unadjusted benchmark price reached $548,600, a monthly gain of over one per cent and a year-over-year increase of 11 per cent. On average, year-to-date benchmark prices have increased across all property types, with the most significant gains occurring in the apartment condominium sector at over seven per cent.

Okotoks

November saw a boost in new listings, helping support some of the year-over-year gain in sales. The rise in new listings compared to sales also helped support gains in inventory levels. However, inventory levels are nearly half what we would typically see in the market in November. Nonetheless, the shift this month did help push the months of supply up to nearly two months. 

While the months of supply did improve, conditions remained exceptionally tight, and prices continued to trend up this month. As of November, the unadjusted benchmark price was $590,200, a one per cent gain over last month and over eight per cent higher than last November. 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

https://www.creb.com/News/CREBNow/2023/December/Price_gains_continue_in_Calgarys_real_estate_market_as_inventory_remains_low/

Hey, everyone. It’s Pete de Jong with REMAX Professionals here. As you can see, I don’t have Katelyn with me today, which is kind of too bad. But the reality is she got some bad news about her puppy last night or this morning. So she’s taken some time off. She’s not doing really well. So hopefully things work out well with Bruno and but either way that that Kate would be back soon.

In the meantime, here’s what’s going on with the market. And again, as usual, we’re going to be comparing September of this year versus September of last year. So just to be clear, and the prices that we’re going to talk about are not average prices, but benchmark prices, which is a little bit better to look at because when you see average prices climbing by two or 3%, it’s only because we’re selling more of the lower price stuff and less of the higher price stuff.

But if you look at a benchmark price, then you can sort of say, well, it looks like my house in my market is probably going to go up about, you know, closer to that amount. So, but we’ll go through that a little bit more detail.

Overall, what’s happening in the last little while has changed a little bit. Cause I know, you know, for the last six or eight months or 10 months, whatever we’ve been saying, same story as last year, inventories down sales are up, but in September things did take a little bit of a twist. And that is that inventory came up from last year.

So right now our inventory is at 3, 370 homes, which is still really, really low, but new listings were up 21 percent from last year. So that’s been an interesting change. Now, part of that is because inventory was so darn low last year that, you know, starting at at a really low base, it’s not hard to get an increase on it, but new listings were at 31, 031.

3,100 new listings in September. Sales were at 24, so sales were up 30%. Listings were up just over 20%, which mean that, which means that total inventory, by the way, is still down 24% or nearly 25% from last year. So, inventory Is is new listings are up over last year total inventory is still down 24% so as long as we’re with a shortage of inventory that we’ve been experiencing you can expect the prices are going to remain stable or continue to climb and that’s just merely a result of you know we’re just not building enough homes for the amount of people that we’re bringing in as usual.

So months of supply actually came down months of supply now is at 1.4% so just less than a month and a half supply of homes on the market, which again, I mean, that’s tiny. And in some markets, especially the market, you know, sort of below the $600,000 level, it’s even lower than that. There’s, there’s virtually nothing.

A house goes up and it’s gone. So that months of supply is down 41.5% from last year. So what has this done to pricing? Well, total benchmark pricing is up about 9%. We’re now looking at $570,000 in terms of detached homes, they’re up over 11%. And again, this is benchmark prices, not average. So the average or, you know, typically a home in your neighborhood would be up sort of over 10 percent from last year, which is not bad.

I mean, that’s a. You know, $50k, $60k, $70k return if that’s what you know, if you’re in the $500,000, $600,000, $700,000 or price range semi detached homes are up about the same, just over 20%.

From last year. But I remember last year when I was doing these market reports and talking about how badly they’d been, they were doing, and just like, man, I think if you’re looking for an investment right now. Nobody wants these townhouses, which means as an investor, that’s a good time to buy a townhouse with the market yings and yens.

So anyway, so they’re up over 17% from last year, which is pretty darn good. And apartments again they’re up 15%. So apartments had a long ways to go as well, especially after the damage that COVID did to the downtown core in conjunction with the The drop in price in the drop of values in the prices of oil and gas and and and that whole market so that the two of them conspired against downtown condos and really beat it up.

Condos outside of the downtown didn’t fare as badly so anyways, so they’re up about 15% from from last year, in terms of the areas of the city that are outperforming the other ones. It’s the. It’s the east side Forest Lawn, Dover all those areas that are outperforming everybody still drip about 20 percent from last year and this goes back to what I was saying is when you see an average price go up a smaller amount than the benchmark prices because if these areas that have have prices where people can still afford to live, you know, prices that are four for a detached home, they’re up 20% from last year.

The northeast, which would include sort of everything north of kind of like Memorial or whatever, they’re up 16% from last year. Other areas are all usually up around 10% and then the downtown is up about 5%. So there’s still room for some real growth downtown. I’ve been saying it for a year.

I’ll continue to say it until it’s not true anymore. But I still think if you’re looking for an investment property, the downtown, as with most downtowns. Across North America, by the way, they were all kind of gutted by COVID and people started to work from home and that kind of stuff, but people are beginning to see that that doesn’t really work, that you’re better off being surrounded by a team by a team and, you know, holding each other accountable and being able to talk about ideas and bang stuff around with other people.

So people are returning to the office. To a large degree and I think that’s going to affect the downtown core as well So that’s what happened in september of 2023 if you have any questions But what happened in your immediate market or if you’re thinking of selling your place? Give me a shout or give Kate a shout and I’d love to talk to you about it.

We do do things differently I like to think that we do things better and we’re constantly trying to improve even how we do things And as a result, I think we’re getting close to like 84 or 85 five star Google reviews in a row. And I take that as a massive compliment. My wife would tell you, if you know her that I get a bigger, I get a bigger thrill out of those Google reviews than I do out of a commission check half the time.

So I just love them anyway. So if, by the way, that means if you’re if you’re a client of mine and you haven’t done a Google review. Please do I mean people do read them. We are in what’s called a review economy. So people look at reviews before choosing a real estate agent or a hairdresser or a lawyer so if you don’t mind leave me a review if it’s a crap cap sorry, if it’s a crappy review, give me a shout first.

I’d like to learn how I can do things better but by all means leave a leave an honest review is great thanks again so much. You can reach me anytime at the website that’ll appear here or here or here or here it’s www. pete. diong. ca. And you can always find me on Facebook and stuff like that too.

And otherwise, yeah, call me or text me anytime on my cell at 403-818-7310. That number will probably appear here or here, here or here too. So anyways thinking of Kate today and I hope she’s doing okay and hope to see her back next time. In the meantime, over and out. Thanks.

Calgary home sales at record highs in September, yet supply remains a challenge

Sales reached another record high in September with 2,441 sales. Despite the year-over-year gains reported over the past four months, year-to-date sales are still nearly 12 per cent lower than last year’s levels.

New listings also improved this month compared to last year and relative to sales. This caused the sales-to-new listings ratio to fall to 76 per cent, preventing further monthly declines in inventory levels.

Nonetheless, inventory levels in September remained over 24 per cent lower than levels seen last year and, when measured relative to sales activity, has not changed enough to cause any significant shift in supply and demand balances. As of September, the months of supply has remained relatively low at less than two months. 

“Supply has been a challenge in our market as strong inter-provincial migration has elevated housing demand despite higher lending rates,” said CREB^® Chief Economist Ann-Marie Lurie. “While new listings are improving, it has not been enough to take us out of sellers’ market conditions.”

In September, the unadjusted residential benchmark price was $570,300, similar to last month and nearly nine per cent higher than last year.

Detached

Inventory levels remained at record lows for the month as the sales-to-new listings ratio remained relatively high at 76 per cent. The decline in inventory levels has been driven by homes priced below $700,000, as supply levels show some improvement for homes priced above this level. While detached sales improved over levels reported last year, much of the gains were driven by the higher-priced properties with some supply options. Overall, homes priced below $700,000 continue to struggle with less than one month of supply.

Despite persistently tight market conditions, the unadjusted benchmark price remained relatively stable this month compared to last month, as a monthly price adjustment in the West end of the city offset monthly gains in all other districts. Overall, at a benchmark price of $696,100, prices are still over 11 per cent higher than levels reported last year at this time, with year-over-year gains ranging from a high of 20 per cent in the East district to a low of nine per cent in the City Centre.

Semi-Detached

September reported a boost in new listings compared to sales activity as the sales-to-new listings ratio dropped below 70 per cent, the first time it has done that since September of last year. The one-month shift supported a monthly increase in inventory levels, but with 295 units available, inventories have not been this low since September 2005.

Following ten consecutive monthly price gains, benchmark prices in September did ease slightly over the last month. However, at a benchmark price of $621,300, prices are still 11 per cent higher than last year’s levels. The monthly pause in price was primarily driven by adjustments in the West and North West districts, which saw the months of supply rise above levels reported last year and last month.

Row

The pullback in monthly sales outpaced the pullback in new listings, causing the sales-to-new listings ratio to fall to 84 per cent. While conditions are still exceptionally tight, it is an improvement over the 90 per cent average reported since April. The shift also prevented any further monthly declines in inventory levels. However, with less than one month of supply, the persistently tight conditions continue to place upward pressure on prices.

The benchmark price in September reached $419,400, a 1.5 per cent monthly gain and 17 per cent higher than levels reported last year. Price gains have occurred across all districts, with the most significant gains occurring in the most affordable districts in the city.

Apartment Condominium

New listings in September were at the highest levels reported for September, contributing to the record-high sales this month. Year-to-date apartment condominium sales reached 6,286 sales, a 25 per cent gain over last year and a record high for the city. Higher lending rates and tight rental market conditions have kept demand for apartment-style products strong. While inventory levels did see a modest gain compared to last month, thanks to a lower sales-to-new-listings ratio, conditions remain exceptionally tight with 1.5 months of supply.

The persistently tight market conditions have continued to drive further price gains. In September, the unadjusted benchmark price reached $312,800, a 1.2 per cent increase over last month and nearly 15 per cent higher than last year.

REGIONAL MARKET FACTS

Airdrie

With 204 new listings and 144 sales, the sales-to-new-listings ratio dropped to 70 per cent, the first time that has happened since 2020. Improved new listings compared to sales helped support a modest monthly gain in inventory levels. However, September inventory levels are still amongst the lowest levels reported since 2005, keeping the months of supply exceptionally low with just over one month.

The persistently tight market conditions have continued to drive further price gains in the city. In September, the unadjusted benchmark price reached $518,000, reflecting a year-over-year increase of over eight per cent. Price gains have occurred across all property types, with the largest year-over-year gains occurring in the apartment condominium sector.

Cochrane

Both sales and new listings eased in September, leaving inventory levels relatively stable this month. While inventories are nearly 40 per cent lower than long-term trends for the month, they are not at the record lows seen. The pullback in sales compared to inventory levels also caused the months of supply to push up above two months, the first time we have seen that since February.

While conditions remain relatively tight, the shift likely prevented further upward pressure on monthly home prices. The unadjusted benchmark price in September was $532,700, slightly lower than last month due to pullbacks in the detached, semi-detached and row sectors. Despite the monthly pause, total residential prices are still over five per cent higher than September 2022 levels. 

Okotoks

With 69 new listings and 52 sales, the sales-to-new listings ratio dropped to 75 per cent in September, the lowest ratio seen since August 2022. The gain in new listings relative to sales prevented any further monthly declines in inventory levels. However, with only 70 units available in September, inventory levels are still amongst the lowest reported monthly levels in over 20 years.

The modest adjustment in both inventory and sales did cause the months of supply to rise over last month’s levels. Still, conditions remain relatively tight, especially for semi-detached, row and apartment-style properties. As of September, the unadjusted benchmark price was $580,200, nearly nine 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.

https://www.creb.com/News/CREBNow/2023/October/Sept_housing_stats/

Hey everyone, it’s Pete de Jong with ReMax here with a very, very quick and short market update for the month of August. Of course I’m away from the office right now. I’m out of the province and so I obviously don’t have Kate with me and so I apologize for that. But here’s the quick and dirty in terms of what happened in August versus August of last year, and it always comes down in these last few months.

Last year probably even did the same thing, but it’s basically this, sales are up almost 20%. They’re up 17.7% from last year in August, and inventory is only up 2.2%. So with sales far out passing the number of inventory that’s coming on we’re seeing total inventory come down 35% from last year, which of course is massive.

If you remember last year at this time we thought at that point that inventory was low already. So our month of supply is down 44% from last year, which means that we’ve got about a 1.3 month supply. So what would that be? A month and a week or a month and two weeks or something like that of supply.

In terms of what that’s done into pricing, our benchmark prices has gone up 6%. Of that, the detached prices are up 7.5%. Same with semi-detached. Townhouses are up 14% from last year, and apartments are up 12%. So that’s the skinny. If you want more detail of what’s going on in your immediate market, whether it’s bungalows or a certain geographical area or whatever, feel free to gimme a shout back anytime.

I’m happy to chat. You can call me or text me even if I’m on holidays. I’m at 403-818-7310 and I’ll talk to you then. Thanks so much. Have a great day.

August sees record-high sales amidst historic low inventory, pushing prices higher

Thanks to a surge in the condominium market, August sales reached a record high with 2,729 sales. Despite the record levels reported over the past several months, year-to-date sales are still down by 15 per cent compared to last year.

While new listings did improve compared to levels seen this time last year, the sales-to-new-listings ratio remained elevated at 87 per cent, preventing any significant shift from the low inventory situation. Inventory levels in August dropped to 3,254 units, not only a record low for the month but well below the 6,000 units that are typically available. Low inventory combined with high sales this month ensured the months of supply remained low at just over one month.

Higher lending rates have caused many buyers to either hold off on purchase decisions or shift toward more affordable products on the market,” said CREB® Chief Economist Ann-Marie Lurie. “The challenge has been the availability of supply, especially in the detached market. Inventory levels hit record lows in August, and while new listings are higher than last year, conditions continue to favour the seller, driving further price gains.

The unadjusted benchmark price reached $570,700 in August, representing the eighth consecutive monthly gain. Prices have trended up across all property types, with row-style properties reporting the largest increase.

Detached

Record low inventory levels this month were primarily driven by pullbacks for homes priced under $700,000. While new listings did improve compared to last year, most of the growth was driven by homes priced over $700,000. August sales did improve over last year’s levels. However, limited supply in the lower price ranges has likely prevented stronger detached home sales. 

Persistently tight conditions drove further price gains this month. As of August, the unadjusted benchmark price reached $696,700. Nearly one per cent higher than last month and over 10 per cent higher than last year’s levels. The highest year-over-year price gains occurred in the most affordable regions of the city’s North East and East districts.

Semi-Detached

The 236 new listings and 197 sales did little to change the low inventory situation. While inventory levels did remain comparable to last month, they are still 35 per cent below last year’s levels and at record lows for the month. Relatively strong sales combined with low inventory levels have given sellers the advantage.

With months of supply remaining exceptionally low throughout 2023, we continue to see upward pressure on home prices. As of August, the semi-detached unadjusted benchmark price reached $623,200, a monthly gain of one per cent and 10 per cent higher than last year. Price growth did range across each of the Calgary districts, but the strongest year-over-year gains were reported in the most affordable districts of the North East and East.

Row

The gain in new listings did little to offset the strong sales activity as the sales-to-new-listings ratio remained high at 94 per cent. This prevented any additions to the inventory and left the months of supply below one month for the fifth consecutive month.

The persistently tight conditions placed further upward pressure on home prices. In August, the unadjusted benchmark price reached $413,200, a monthly gain of over one per cent and nearly 16 per cent higher than levels reported last year. Year-over-year gains have occurred across all districts, ranging from 12 per cent in the North West to 29 per cent in the East district.

Apartment Condominium

August sales continue to rise over last month and last year’s levels. Recent gains have caused year-to-date sales to reach 5,582 units, nearly 22 per cent higher than last year’s levels and a new record high for the city. Tight rental markets and relative affordability have driven many purchasers to the apartment condominium sector. At the same time, new listings have struggled to keep pace as the sales-to-new-listings ratio bumped up to 98 per cent in August, causing inventories to ease and the months of supply to drop to one month. 

The tight market conditions have been placing upward pressure on home prices, and as of August, the unadjusted benchmark price reached $309,100, a monthly gain of over one per cent and a year-over-year gain of over 13 per cent. The City Centre is the only district that did not report a monthly price gain, and prices are still below their previous highs in 2014. This is partly due to better supply/demand balances in the City Centre compared to other parts of the city.

REGIONAL MARKET FACTS

Airdrie

With 204 sales and 206 new listings, the sales-to-new-listings ratio pushed up to 99 per cent, causing inventory levels to decline. With only 176 units available in inventory, the months of supply once again dropped below one month.

The persistently tight market conditions continued to place upward pressure on home prices. In August, the unadjusted benchmark price reached $515,600, up from last month and nearly six per cent higher than last year’s.

Cochrane

Following several months of inventory gains, August saw inventory levels fall to 144 units due to a pullback in new listings. While sales did improve compared to last year, the pullback in new listings caused the sales-to-new-listings ratio to increase to 91 per cent. Meanwhile, the months of supply remained below two months, not as tight as what is being experienced in Airdrie but far lower than what we would typically expect in the town.

The persistently tight market conditions drove further price gains this month. The unadjusted benchmark price reached $534,700 in August, nearly one per cent higher than last month and over four per cent higher than last year’s levels. Prices trended up across all property types, but the most significant monthly gains occurred in the relatively affordable apartment condominium sector.

Okotoks

The 59 sales in August were met with 65 new listings in the month, causing further retractions to the already low inventory levels. With only 64 units available, Inventory levels hit a new record low for August. The drop in inventory also caused the months of supply to remain low at one month.

Despite the tight market conditions, benchmark prices decreased from last month’s high. The monthly variation is not uncommon for smaller centres, and it is important to note that with a benchmark price of $582,000, prices remain seven per cent higher than last year’s levels and 10 per cent higher than where we were at the start of the year.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

https://www.creb.com/News/CREBNow/2023/August/July_sees_seventh_consecutive_monthly_gain/

Pete: Quiet on the set. Rolling. 

Kate: Hey, how do you do it Like this? No, like this. 

Pete: You have to ask that crazy weirdo that was here. Hey everyone, it’s Pete de Jong, here with the actual Kate. Kate is back from holidays. 

Kate: Hello. 

Pete: For a few days. So that’s nice that we, that we can have her back. ’cause I tell you that girl we had fill in for you last time.

Kate: What? I know what, how much did you pay her? Like serious. 

Pete: Serious. What a disaster. Well, too much. Yeah. Yeah. Like whatever we paid her, even if it was like a sandwich. It was too much. She was awful. I don’t know if you guys watched the last market update, but yeah. I, I hired an actress to fill in for Kate and she was an unmitigated disaster.

Kate: She caught my smile right though. At the end. 

Pete: At the end. Yeah. She did this. 

Kate: I was like, Hey, that’s me. 

Pete: Yeah. But otherwise, yeah. What a nightmare. Hey so here’s what’s going on in the market ’cause that’s probably really why you’re here. So we’re gonna be talking about July of 2 20 23 versus July of 2022. Standby for that.

Kate: Sorry. See, I’m offbeat. So let’s talk about our benchmark prices specifically for detached houses. It rose up 7.6%. So we’re almost at $700,000 for the benchmark price.

Pete: For detached houses. Yeah. Semi-detached. So these are houses that are attached to another house, but they’re not exactly a townhouse or a condo type thing. They rose 7.4% over July of last year, and they’re actually at $617,000 for a semi-detached house. That seems odd. . Yeah. What about townhouses? What are they doing? 

Kate: Yeah. Townhouses actually has the biggest increase from all of the market. It’s at 13.7% higher than it was last year, so just a little over $400,000 now for a benchmark price for a row house.

Pete: For a townhouse. Yeah. Whoever would’ve thought. And they, and like Kate mentioned, like they’re just going up and up and we’ll explain why in a minute here. But, and then apartments are up 12% as well. And what we’re really finding is it’s the low end apartments that are, that are climbing the fastest there as well, so just like the whole market, it’s the lower end of the market in every way that you look at it, whether it’s. Segment of the market by type of property or segment of the market, depending on even geographical area. It’s all this, it’s like the cheaper your house, the faster it’s moving up.

So, eventually, what we hope is that, you know, the rising tide lifts all ships, but we’re really seeing the most activity. And I think this is just a reflection of what would happen when you raise interest rates. 

Kate: Exactly. Yeah. 

Pete: That’s gonna affect the expensive stuff more than The cheaper stuff.

Kate: More than the cheaper stuff. Yeah. Because we’re even, like Pete mentioned, when we talked about the geographical side of it, the east is the side that’s actually doing the best right now. 

Pete: Yeah. Forest lawn. 

Kate: Forest lawn. My hood. 

Pete: Forest Lawn where you were raised, I think, right?

Kate: Well, yeah. Born than raised.

Pete: Yeah. Forest Lawn, Dover, Erin Woods. Those areas have outpaced the rest of the market like significantly. They’re up almost 18% from July of last year. Compared that the downtown, which is up, like what? 

Kate: Not even a percentage.

Pete: Not even 1%, 0.9%. Yeah. So everyone that told you a few years ago, don’t ever buy a house in Forest Lawn, you know, blah, blah.

It’s like, no, that’s actually the area that has performed the best. In fact, it’s pretty much double some of the areas or most of the other areas of the city, so, yeah, the downtown still has a lot of room to grow, and as a result, actually, I’m actually thinking that that’s where the opportunities are right now.

So we’ll see if I’m right or wrong. In the next few months or a year or so. In terms of total sales though, what are we seeing, Kate? 

Kate: Total sales are up 17.7% year over year. As for listings? 

Pete: Yeah. Like yeah, sales are up 18%. New listings are only up 2% . So inventory’s being driven down. 

Kate: Yes. Yeah. Inventory is down at 34%. Compared to last year. And how does that look for 

months of supply? 

Pete: Months of supply? We’re at 1.3 months of supply, so that’s down 44% from last year. Yeah. And like I said, I, you know, I keep saying this. Last year we were saying we had a bit of low inventory problems.

We’re down 44% in months supply from last year. But of course, like we always say, we have to. You know, you have to look at what your market is doing. ’cause every market is a little bit different, you know, depending on where you are in the city or depending on whether you’re living in a condo or a house, all that kind of stuff.

So it’s really important. If you wanna know what’s going on in your immediate market, get ahold of us. We’re happy to, to let you know. In fact we’re happy even to send you a monthly report, free of charge and with no obligation. That’ll just show you what’s happening, like if you say, I just need single family homes in Bridgeland. I don’t want condos. And we could send you a report every month for single family homes in Bridgeland, if you want. But. Here’s the funnest part. What’s the highest price house to sell this year? 

Kate: Oh, so the highest price house to sell for the month of July. It sold for $4.075 million, beautiful home, by the way sold in Britannia. 

Pete: Who was it sold by? It was my cousin, wasn’t it? Yeah. 

Kate: Yeah. April de Jong. I wanted to, because I saw de Jong, so I was like, do you know April de jong? 

Pete: Yeah. I don’t know. April de Jong. Oh, I’ve never met her. I probably should. She’s probably my cousin. But anyways, who knows? I have black cousins, you know? Did you ever, there was a de Jong that played soccer for the the Dutch National team. Yeah. Oh. And and now there’s a guy named Frankie de Jong, who I keep hearing from my. People that, that watch soccer. I don’t watch soccer. I don’t have the patience. My, I watch the highlights it takes about 30 seconds. 

Yeah. But anyways lowest price sale was in, was in the belt line. But just, just so you know, the BeltLine is actually starting to really come alive. It’s, and when you hear this price, you’re gonna go, oh, but there’s, there’s a story. So this one sold for $108,000. But it did have a huge special assessment. The condo fees were high, there was all kinds of issues with this one. So.

I wouldn’t pay too much. I, you know, for those of you that are watching this from Toronto or Vancouver, please don’t think you can buy a condo in the BeltLine for 108. I think in the BeltLine, they’re sort of starting at about $160k, $170k now for an older one bedroom condo.

So, yeah, this one really had some issues. But again if you wanna know what’s going on in your market, Get ahold of us. My website is www.petedejong.ca. And you have a website, 

Kate: www.katelynbrecio.ca.

Pete: And I’m sure our video editor will put them there or there. Probably not. There or there.

Up there or down there. So anyways, that’s where you go to get info. Well, thanks everyone for watching. Don’t forget to like, and subscribe and share and do all the things. All the things we’d really appreciate it. There might be other people that you know too, that would like to know what’s going on in the market every month.

So feel free to share it around and we appreciate you. Thanks so much. 

Kate: Until next time folks. I feel like that deserves like a little Warner Brothers tune.

Pete: Well, Lydia can add that. 

Kate: Yeah! Until next time folks!

Calgary home prices reach new heights: July sees seventh consecutive monthly gain

Rising rates had little impact on sales this month as the 2,647 sales represented a year-over-year gain of 18 per cent, reflecting the strongest July levels reported on record. The record-setting pace has been driven mainly by significant gains in the relatively affordable apartment condominium sector. Despite recent gains, year-to-date sales have declined by 19 per cent over last year.

In line with seasonal expectations, sales and new listings trended down compared to last month. However, this had minimal impact on inventory levels, which remained near the July record low set in 2006. With a sales-to-new-listings ratio of 82 per cent and a months of supply of 1.3 months, conditions continue to favour the seller.

“Continued migration to the province, along with our relative affordability, has supported the stronger demand for housing despite higher lending rates,” said CREB^® Chief Economist Ann-Marie Lurie. “At the same time, we continue to struggle with supply in the resale, new home and rental markets resulting in further upward pressure on home prices.” 

In July, the unadjusted total residential benchmark price reached $567,700, marking the seventh consecutive monthly gain. Prices are now over four per cent higher than the previous peak in May of 2022.

Detached

With 1,197 sales and 1,587 new listings in July, inventory levels trended up over last month. However, with 1,720 units available, inventory levels are at the lowest ever reported for July. Inventory levels have declined across all properties priced below $1,000,000. 

Shifts in sales and inventory have caused the months of supply to trend up over the one month reported over the past several months. However, conditions remain relatively tight, and prices continued to rise this month. In July, the unadjusted benchmark price rose to $690,500, a monthly gain of nearly one per cent and over seven per cent higher than last July. Both year-over-year and monthly price growth was strongest in the city’s most affordable North East and East districts.

Semi-Detached

With only 248 new listings in July and 211 sales, the sales-to-new-listings ratio once again pushed above 85 per cent. The pullback in new listings relative to sales ensured that inventory levels remained low, and the months of supply remained just over one month. 

With no shift in the sellers’ market conditions, the unadjusted benchmark price continued to trend up in July, reaching $616,800. Monthly gains were strongest in the North East and East district as both rose by over two per cent compared to June. The only district that experienced stability in monthly prices was the City Centre. 

Row

July reported 488 new listings and 467 sales, resulting in a sales-to-new listings ratio of 96 per cent. This prevented any additions to the inventory and left the months of supply below one month for the fourth consecutive month.

The persistent sellers’ market conditions caused further price gains for row properties. As of July, the benchmark price reached $407,500, nearly two per cent higher than last month and 14 per cent higher than prices reported last July. Prices trended up across all districts, with the highest monthly gain occurring in the west district at nearly four per cent. The slowest monthly gains happened in the City Centre.

Apartment Condominium

July sales continued to rise over last year’s levels, leaving year-to-date sales 16 per cent higher than levels reported last year. This is the only property type that has reported a year-to-date gain in sales activity. This has been possible thanks to recent gains in new listings. However, conditions remain tight for apartment condominiums with a sales-new-listings ratio of 84 per cent and a months of supply of 1.4 months. 

The strong demand relative to supply for this property type has driven further price gains this month. As of July, the unadjusted benchmark price reached $305,900, nearly one per cent higher than last month and over 12 per cent higher than last July. While prices are higher than last year in every district, the city center has yet to see the same level of pressure on prices and has reported the lowest year-over-year growth at nearly nine per cent.

REGIONAL MARKET FACTS

Airdrie

New listings this month remained comparable to last month. Meanwhile, sales trended down, supporting a modest gain in inventory and a sales-to-new listings ratio of 84 per cent. This also helped push the months of supply back above one month.

Despite the monthly gain in the months of supply, conditions remain exceptionally tight and continue to favour the seller. This caused further price growth as the unadjusted benchmark price rose nearly one per cent over last month to $514,100. Prices have been improving across all property types, but the detached benchmark price has pushed above $600,000 in Airdrie for the first time.

Cochrane

With 110 new listings and 85 sales, the sales-to-new-listings ratio remained at 77 per cent this month. This helped contribute to a modest gain in inventory levels, and the months of supply rose to nearly two months. 

Despite this shift, conditions remained exceptionally tight in the Centre, and prices continued to trend up. As of July, the unadjusted benchmark price reached $529,700, nearly one per cent higher than last month and over three per cent higher than last July. Price growth has occurred across all property types, and the detached benchmark price now sits at $626,100.

Okotoks

July reported 78 new listings and 67 sales, keeping the sales-to-new-listings ratio elevated at 86 per cent and preventing any significant shift in inventory levels. Nonetheless, the months of supply did rise to above one month following the exceptionally low levels reported over the past two months.

While conditions are not as tight as last month, the market still favours the seller, and prices trended up over last month, with a benchmark price reaching $586,900. Prices now sit over seven per cent higher than last year, with the most significant year-over-year gain occurring in the semidetached sector. Detached benchmark prices pushed up to $655,100 in July, 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

Pete: ​Hey everyone, it’s Pete de Jong here with Remax. As you can see today, I don’t have Kate with me. She’s on holidays again, which is what she does. 

“Kate”: Hey Pete. Hey, sorry I’m late.

Pete: She’s back. Sorry, I didn’t realize she back. Grab a seat. We are just starting the monthly market update.

This is the monthly market update, by the way, for for June of 2023. So stand by and we’ll get you all the details.

Kind of thing. You’re supposed to do that part. 

“Kate”: Oh, sorry. Just not feeling like myself today.

Pete: So, Kate you were on holidays again. 

“Kate”: Yeah! 

Pete: You really changed over your holidays. 

“Kate”: Oh, don’t mind me. I just, I’m a little sunburnt. 

Pete: As usual 

“Kate”: just went a little crazy. So I’m, you know, I need to recover a little. 

Pete: Well, I didn’t think you were back till tomorrow, so I’m glad you got back here early.

“Kate”: Mm-hmm. 

Pete: I’m not, I’m not sure you’re Kate. She doesn’t drink coffee Anyways. So everyone, here’s what’s going on in the market. Kate, why don’t you tell us what’s going on with sales in terms of number of sales versus last year? 

“Kate”: Right. So some homes were sold. 

Kate: Yeah. 

“Kate”: There were sales. 

Pete: Yes. 

“Kate”: Yes. 

Pete: Well, I usually expect more from you. There’s usually some good insight coming from Kate, but 

“Kate”: Right. 

Pete: But not this time. Here’s the, here’s the reality. Sales were, were up considerably from last year. Sales were up almost 11% versus of June of last year. At the same time, we saw inventory, or at least new listings drop by about 3%. So inventory itself is down by 36% from last year. So this is what you’re seeing in the market. This is the craziness. We’re seeing the number of sales up by 11%, so demand is up by 11% and supply is down by 36%. When you keep hearing about there being a shortage of inventory in the market. That’s the number, like that’s pretty incredible.

Months of supply is down 42% from June of last year. So that’s a lot of supply that we’re missing compared to last year. And don’t forget, last year we were saying that we got a shortage of supply. So this is this problem continues to compound and get worse and worse for now. At some point it’s gotta hit a wall, things have to change, but that’s what’s going on now.

So in terms of pricing, prices of course are up across the board. I think in general we’re getting close to across the board we’re up about how much percent Calgary real estate board wise? 

“Kate”: A substantial percent for sure. 

Pete: A substantial percent… You. You’re not the Kate that I remember. 

“Kate”: Well, you’re not the Pete that I remember cuz I don’t remember you just having a mustache.

Pete: Oh yeah. So, right. Well this is… 

“Kate”: You know, making comments about me. I took a vacation, so just leave alone. 

Pete: Well, you’re also alone a foot taller than you were. 

“Kate”: I’m just sitting up straight. Okay, Pete. 

Pete: Okay. Alright, fine, fine. So when I say the sales prices are up about 10%, it’s really geared towards apartment, condos and townhouses and that kind of thing.

So in fact so detached houses are up in terms of price, about 6.1%. Semi-detached are up about 6%. Row houses are up about just over 11% and apartments are up almost 12%. So that’s where the market has been and I’m happy to say that’s what I was saying a few months ago was gonna happen.

So for those of you that invested the way I recommended, Or bought even the way I recommended. You’ve done well and I expect that to continue yet, by the way, there’s still, our department prices are still really, really low. 

We’re doing a market update. 

“Kate”: Yes.

Pete: This is not about your nails, 

“Kate”: Can I live? 

Pete: Yeah, so, so that’s what’s going on in terms of.

You know, I, I thought I remember Kate being a lot nicer. 

“Kate”: Oh, that’s nice. 

Pete: Yeah. She, in terms of areas that are areas in terms of how they’re performing, again, it’s the southeast, like the, the east part of Calgary that’s north of the part that we normally consider Southeast. So I’m talking areas like forest lawn.

And Dover and those kind of areas, they’re up over 15% in in price. So they’re up quite a bit. The areas that still has room for improvement of course is, is the city center. It’s only up 1%. So that area has lots of room to to grow. And again, that’s why what? 

“Kate”: This is, it’s nothing. It’s fine. It’s just the absolute most boring thing I’ve ever had to sit through. 

Pete: Well, I know you’re a famous actress and you’re usually like in horror movies and shoot ’em ups and stuff, but I needed someone. 

“Kate”: What do you mean? 

Pete: I needed someone to fill in for Kate, so I just prefer you’d acted a little bit like Kate.

“Kate”: So, so, so are they gonna know? 

Pete: They’re not gonna know who you really are. No, don’t worry. You’re, you’re covered up Fine. Yeah, just, I just wish you were so, I, but I’m, I wish you could act like Kate cuz Kate’s actually really, 

“Kate”: How does, how does Kate act? 

Pete: She’s really nice. And she’s really well informed with respect to the Calgary estate market.

“Kate”: You’re just gonna have to whisper the answers to me in between. 

Pete: Yeah. 

“Kate”: I have no idea what, what is real estate? I’ll be more like Kate. 

Pete: That’s better. 

Anyway, so that’s what’s going on in a real brief synopsis of what’s going on in the market. Hopefully next year, we’ll, or next month, we’ll have some more information for you cuz Kate will be with us and Kate actually knows what she’s talking about.

In the meantime, that’s what’s going on. If you wanna know what’s going on in your particular market, again, always get in touch with me because as we can see, With East Calgary up 15% city center, only up 1%, apartments up to 12%, detached only up 6%. Different markets are doing different things and even in different neighborhoods, we’re seeing pretty big variances in terms of what what the market is doing.

So if you wanna know what your place is worth, or what your immediate market is doing, by all means get in touch with me or with Kate. You can… 

“Kate”: Hi! 

Pete: You can reach me at 403-818-7310, or you can correspond me on the internet at petedejong.ca. Thanks so much. We’ll see you next month. 

“Kate”: Bye guys!

Another record-high month for Calgary

The housing market in Calgary witnessed a surge in apartment condominium sales, setting a new total residential record with 3,146 sales achieved in June. Although year-to-date sales are currently 23 percent lower than last year, they remain significantly higher than pre-pandemic levels.

Notably, there has been a positive trend in new listings, providing relief and a monthly increase in inventory levels. However, despite these improvements, the inventory for June stood at 3,458 units, marking a decline of over 36 percent from last year and reaching the lowest levels for June in nearly two decades.

“The demand for housing remains robust, bolstered by a healthy labour market and increased migration levels, which helps offset the impact of higher lending rates,” said CREB^® Chief Economist Ann-Marie Lurie. “Although we have seen some recent improvements in new listings, particularly for apartment condominiums, it is not enough to cause any substantial change from the low inventory situation in our city. While new home starts are on the rise, it will take time to observe their impact on supply.”

With a supply of just over one month, the current market conditions continue to favour sellers, placing upward pressure on home prices. In June, the total residential benchmark price reached $564,700, representing a monthly unadjusted gain of one percent and four percent higher than last year’s levels.

Detached

A monthly gain in new listings supported a monthly increase in inventory levels. However, with only 1,651 units available in June, levels hit a new record low for the month. Inventories declined across most price ranges, but the steepest declines occurred in homes priced below $600,000. Of all the inventory in June, only 24 per cent was priced below $600,000, a significant drop from last year, where that market segment represented 45 per cent of the supply.
 
Limited inventory, especially in the lower price ranges, ensured that the market continued to favour the seller, driving further gains in home prices. As of June, the benchmark price reached $685,100, an unadjusted monthly gain of nearly two per cent and a year-over-year increase of six per cent. Year-over-year gains were the highest in the most affordable North East and East districts.

Semi-Detached

New listings in June improved, helping support modest monthly gains in inventory levels. However, with 268 units in inventory and 240 sales, the months of supply remained exceptionally tight at just over one month. The persistently tight market conditions have contributed to further price gains for this property type. As of June, the benchmark price reached $613,100, over two per cent higher than last month and nearly six per cent higher than levels reported in the previous year at this time.
 
Persistently tight conditions across all districts supported price growth. Year-over-year price growth ranged from a low of 4.5 per cent in the city centre to a high of 17 per cent in the East district. 

Row

Both sales and new listings trended up over the levels reported last month. Still, with a sales-to-new-listings ratio of 86 per cent and months of inventory below one month, conditions continued to favour the seller placing upward pressure on home prices.
 
In June, the benchmark price reached $400,000, over two per cent higher than last month and over 11 per cent higher than last year. Prices improved across all districts in the city, with the most significant monthly gains occurring in the East, North East and South districts. These districts have also reported year-over-year price gains of nearly 20 per cent.

Apartment Condominium

Sales in June reached 857 units, 48 per cent higher than last year. Over the past three months, sales growth was enough to cause year-to-date sales to rise by 11 per cent over last year. The gain in sales was possible thanks to improving new listings. However, persistently strong demand for affordable product has prevented inventories from improving. In June, inventory levels reached 1,116 units, the lowest level for the month reported since June 2013.
 
Persistently tight conditions contributed to the sixth consecutive month where prices rose. As of June, the benchmark price reached $303,200, nearly two per cent higher than last month and 12 per cent higher than last year’s levels. While unadjusted prices have hit a new record high, prices remain below the peak in the City Centre, North East and East districts.

REGIONAL MARKET FACTS

Airdrie

A pullback in new listings contributed to slower sales activity this month. With 245 new listings and 221 sales, the sales-to-new listings ratio remained elevated at 90 per cent. This also prevented any significant shift in the inventory situation, keeping the months of supply below one month.
 
As market conditions continue favouring the seller, Airdrie reports further gains in home prices. As of June, the unadjusted benchmark price reached $511,100, representing a new record high for the city. Prices have risen across all property types, with the largest gains occurring in the row and apartment condominium sectors.

Cochrane

Sales activity in June eased, contributing to the year-to-date decline of 30 per cent. While the decline seems significant, levels are still far higher than any sales level reported before the pandemic. Like other areas, Cochrane is struggling with low inventory levels as significant declines in new listings limit consumers’ choices.
 
Persistently tight market conditions have contributed to further gains in home prices. As of June, the unadjusted benchmark price reached $526,500, nearly two per cent higher than last month’s and last year’s levels. This also reflects a new record high price for the town. 

Okotoks

With 87 sales and 84 new listings, the sales to new listings ratio once again pushed above 100 per cent. This caused further inventory declines, and the months of supply dropped to 0.7 months, the lowest level ever reported for June.
 
The persistently tight conditions caused prices to rise again in June. The unadjusted benchmark price reached a record high of $585,300, reflecting a two per gain over last month and six 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.