The Calgary real estate market continues to demonstrate remarkable resilience and dynamism, even amidst shifting economic landscapes. While residential sales in the last month recorded a slight dip compared to the record highs of the previous year, the overall market activity remains significantly robust, outpacing long-term trends by a considerable margin. This compelling scenario underscores a market characterized by high demand and persistent supply challenges, particularly within the more accessible price points.
According to the Calgary Real Estate Board (CREB), Calgary saw 2,738 residential sales last month. This figure represents a 13 percent decrease from the peak sales observed in the same period last year. However, it’s crucial to contextualize this by noting that current sales volumes are over 17 percent higher than the city’s long-term real estate averages. This indicates a fundamentally strong market that, despite not hitting last year’s unprecedented peaks, is still performing exceptionally well.
“The modest pullback in sales figures is a direct reflection of the persistent supply challenges plaguing the lower price ranges, which ultimately constrains the overall sales activity,” explains Ann-Marie Lurie, Chief Economist at CREB. Lurie’s insights highlight a critical imbalance: “Inventory levels across all property types, especially within the more affordable segments, continue to dwindle. This leaves potential purchasers seeking entry-level or budget-friendly options with increasingly limited choices. The competitive nature of the market is further evidenced by the fact that over 40 percent of homes sold are still commanding prices above their original list price, signalling intense buyer competition and bidding wars.”
Calgary Real Estate: Inventory and Pricing Dynamics
The supply side of Calgary’s housing market remains a pivotal factor shaping its current trajectory. New listings were notably lower last month, a trend that exacerbated the existing inventory crunch. This resulted in a robust sales-to-new-listings ratio of 72 percent, indicative of a strong seller’s market where a significant portion of new properties quickly find buyers.
Total inventory, while improved compared to last year, stood at 3,789 units. However, this figure is still a staggering 40 percent below the long-term averages for the city, emphasizing the severity of the supply shortage. The “months of supply” metric, which indicates how long it would take to sell all current listings at the prevailing sales pace, stands at a relatively low 1.4 months. This tight supply, coupled with relentless demand, continues to fuel price appreciation across all districts, firmly cementing conditions that favor sellers.
The unadjusted benchmark price for June reached an impressive $608,000. This represents an almost nine percent increase compared to the same period last year, demonstrating the sustained upward pressure on home values across Calgary. Buyers navigating this market must contend with rapidly appreciating assets and limited availability, making timely decisions and strong financial positioning paramount.
Source: CREB
Calgary Housing Market Snapshot: Detached Homes
Detached homes, traditionally the most sought-after property type, experienced a 16 percent year-over-year sales drop across Calgary. This decline can largely be attributed to the severe shortage of inventory rather than a significant fall in demand. New listings for detached homes were 45 percent below long-term June trends, contributing to an acute lack of choice for prospective buyers. With only 1,775 detached homes in inventory city-wide, competition remains fierce for available properties.
Despite the dip in sales volume, prices for detached homes continued their upward trajectory. The unadjusted benchmark price for a detached home reached $767,600, reflecting an almost one percent increase from May and a substantial 12 percent rise compared to the previous year. This segment of the Calgary real estate market underscores the premium placed on larger, standalone properties, with demand persistently outstripping supply and driving significant value appreciation.
Semi-Detached Homes: A Highly Competitive Segment
The market for semi-detached homes in Calgary mirrors the tight conditions seen in other property types. New listings for semi-detached properties were exceptionally low last month, intensifying the competitive landscape for buyers. The sales-to-new-listings ratio for this segment climbed to a very high 76 percent, indicating that nearly three-quarters of new semi-detached listings were absorbed by the market almost immediately upon arrival.
Inventory levels remained critically low, with just over one month of supply available. This figure represents approximately half of what is typically observed in June, signaling a profound shortage that severely limits buyer options. Consequently, the unadjusted benchmark price for semi-detached homes saw a one percent increase from the previous month and a notable 12 percent surge from last year, reaching $686,100. This segment remains a compelling option for those seeking more space than an apartment or row home, but with a slightly more accessible price point than fully detached properties, leading to intense competition.
Row Homes: Supply Constraints Drive Price Growth
Row homes, often viewed as a step up from apartments or a more affordable entry into multi-level living, also faced significant market pressures in June. Sales of row homes slowed relative to the past two years, yet the market remained exceptionally tight due to constrained supply. The sales-to-new-listings ratio for this property type fell to 75 percent, which, while lower than recent peaks, still represents the lowest June level since 2021, reflecting a market where new listings are quickly snapped up.
With approximately one month of supply available, conditions for row homes are extremely tight, making it challenging for buyers to find suitable options. This scarcity has translated into significant price appreciation. The unadjusted benchmark price for row homes reached $464,600, marking an impressive 17 percent increase compared to last year. This rapid price growth highlights the intense demand for more compact, yet private, housing solutions in Calgary’s competitive market.
Apartment Condominium Homes: Record-Breaking Year-to-Date Performance
The apartment condominium sector in Calgary continues to be a crucial component of the city’s housing landscape, particularly for first-time buyers and those seeking more affordable options. In June, 791 apartment condominium home sales were recorded, which is nearly eight percent less than the record-breaking figures of the previous year. This slight decline was primarily observed in the lower-priced segments, indicating that even the most affordable properties are becoming harder to secure.
Despite this monthly dip, the year-to-date apartment sales are up by a robust 13 percent, achieving record-high levels. This overarching trend underscores the enduring appeal and necessity of condominium living in Calgary. While the sales-to-new-listings ratio saw a slight fall and inventory increased, this growth in inventory was predominantly concentrated in higher-priced properties, doing little to alleviate the shortage in the entry-level market.
Prices in the apartment condominium segment have surged dramatically, increasing by over 17 percent from last year to reach an unadjusted benchmark price of $344,700. This significant appreciation reflects a combination of high demand, limited overall supply (especially at lower price points), and the relative affordability of condos compared to other property types, making them an attractive option in a challenging market.
Where Calgary Buyers Are Discovering More Affordable Homes
Calgary’s real estate market continues to thrive, fueled in part by a substantial influx of interprovincial migration to Alberta last year. This strong demand, however, hasn’t entirely eradicated pockets of affordability within the city, especially when compared to the soaring prices in other major Canadian markets. A recent report from Wahi, a prominent real estate insights platform, shed light on several neighborhoods where buyers can still find single-family homes for $500,000 or less.
Between January and May of this year, Wahi identified 40 distinct neighborhoods within Calgary that offered single-family homes at or below this price point. This revelation provides crucial guidance for budget-conscious buyers navigating the city’s competitive environment.
The report highlighted that the southwest quadrant of Calgary is home to the ten most affordable neighborhoods on their list. Additionally, two neighborhoods in Northwest Calgary and one in Northeast Calgary also featured prominently in the search for cost-effective single-family housing. These areas offer a compelling opportunity for individuals and families seeking to enter the homeownership market without exceeding the half-million-dollar threshold, showcasing Calgary’s unique balance of growth and relative attainability.
Source: Wahi
Intense Bidding Wars for Calgary’s Single-Family Homes Under $500,000
Despite the existence of more affordable pockets within Calgary, the competitive nature of the market means that even these properties are subject to intense buyer activity. The Wahi report further revealed that approximately 65 percent of the city’s neighborhoods where the median price of a single-family home was below $500,000 experienced overbidding during the first five months of the year. This phenomenon underscores the significant demand for accessible single-family housing and the lengths buyers are willing to go to secure a property.
Southwest Calgary’s Cedarbrae neighborhood emerged as a prime example of this trend, with selling prices averaging about nine percent above the asking price. Similarly, Woodlands, also located in the southwest, recorded the lowest single-family home median price at $295,000. Yet, even in this most affordable neighborhood, homes were selling for approximately five percent above their list price. These figures vividly illustrate that a “lower price” in Calgary often still translates to a highly competitive bidding scenario, reflecting the strong buyer confidence and limited options.
The competitive landscape isn’t confined solely to the more affordable segments. The report also indicated that nearly half of Calgary’s neighborhoods, including those with higher-priced properties, were in overbidding territory from January to April. This suggests a widespread market dynamic where demand consistently outstrips supply, leading to a prevalent seller’s market across various price points and property types. Buyers in Calgary must therefore be prepared for swift decisions and potential bidding wars, irrespective of their budget or preferred neighborhood.
For more detailed insights, you can review CREB’s comprehensive reports for the city and region.