Calgary Real Estate Market Shifts: A Comprehensive July 2024 Analysis

The dynamic Calgary real estate market is witnessing significant shifts, as reported by the Calgary Real Estate Board (CREB). Following a robust spring season, July 2024 has brought about notable changes in supply levels, indicating a gradual transition from the intense seller’s market conditions that characterized the earlier months of the year. This comprehensive analysis delves into CREB’s latest findings, offering a detailed overview of sales, listings, inventory, and price trends across various property types in Calgary.

Calgary Housing Market Sees Increased Supply in July 2024

July’s real estate activity in Calgary recorded a total of 2,380 sales, accompanied by 3,604 new listings entering the market. This surge in new properties contributed to a sales-to-new listings ratio of 66 per cent, a figure that has been instrumental in boosting the overall inventory to 4,158 units. This milestone marks the first time Calgary’s housing supply has surpassed the 4,000-unit threshold in nearly two years, offering a much-needed reprieve for buyers.

Despite this encouraging increase, the current inventory still lags approximately 33 per cent behind the typical average for July. However, the growth in supply has not been evenly distributed. A significant portion of this new inventory has been observed in the higher-priced segments, particularly for homes valued above $600,000. This influx of more expensive properties has played a crucial role in moderating the extreme seller’s market conditions that dominated Calgary’s real estate landscape throughout the spring.

Ann-Marie Lurie, chief economist at CREB, commented on these developments, stating, “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. 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.” Lurie’s insights underscore the evolving nature of the market, where increased supply is a critical factor in achieving greater equilibrium and fostering more predictable pricing structures in the coming months.

Higher Supply: Easing Prices While Still Favoring Sellers

While July’s sales figures, at 2,380 units, were 10 per cent lower than the record highs experienced in the same month last year, they nonetheless remained above the long-term monthly averages, showcasing sustained demand in the Calgary housing market. The combination of this consistent, albeit slightly moderated, demand and the increase in available inventory has had a tangible impact on market dynamics. The “months of supply” metric, a key indicator of market balance, rose to 1.8 months in July. This represents a notable improvement from the less-than-one-month supply observed earlier in the year, which signified an intensely competitive seller’s market.

Although 1.8 months of supply still generally indicates conditions that favor sellers, it signifies a move towards a more sustainable market environment. This extra supply has been instrumental in slowing the rapid pace of price growth witnessed across all property types. The total residential benchmark price for Calgary in July 2024 stood at $606,700. This figure remained remarkably close to June’s price levels, indicating a pause in month-over-month appreciation. However, when viewed year-over-year, the July benchmark price still represents a robust increase of almost 8.0 per cent compared to 2023 levels, reflecting the strong cumulative growth seen over the past year.

This nuanced picture highlights a market in transition. While property values continue their upward trajectory on an annual basis, the immediate monthly gains are decelerating. This shift provides a glimmer of hope for prospective buyers who have been contending with rapidly escalating prices and limited choices, suggesting a more measured and potentially stable environment for future transactions in Calgary’s diverse real estate landscape. The gradual increase in inventory, particularly in specific price brackets, is a critical factor contributing to this emerging stability, setting the stage for a more balanced second half of the year.

Detached Homes: A Deeper Look into Calgary’s Benchmark Segment

The detached home segment, often considered the benchmark for the broader Calgary housing market, experienced a modest slowdown in July. Sales for detached properties fell by 8.0 per cent compared to the previous year. This decline can be largely attributed to contrasting trends within different price brackets. While there was a notable 15 per cent rise in sales for detached homes priced above $600,000, this was insufficient to offset a significant 50 per cent decline in sales for lower-priced detached homes. This divergence suggests a potential shift in buyer preferences or affordability constraints affecting entry-level detached properties.

Year-to-date, overall detached home sales have eased by just over 1.0 per cent compared to the previous year, indicating a slight cooling after a period of intense activity. In July alone, Calgary recorded 1,098 detached home sales against 1,721 new listings. This increase in new inventory pushed total detached home inventories to 1,950 units. Consequently, the months of supply for detached homes rose to nearly two months. While still indicative of a seller-favored market, this provides more breathing room than earlier in the year.

The unadjusted benchmark price for detached homes in July reached $767,800. This price remained consistent with June’s figures, suggesting a stabilization in monthly price appreciation. However, when comparing year-over-year, the benchmark price is still a substantial 11 per cent higher than last July, reflecting the strong appreciation experienced throughout 2023 and early 2024. This segment continues to demonstrate resilience and strong long-term value, even as immediate price growth shows signs of moderation, making it a crucial area for understanding Calgary real estate trends.

Semi-Detached Homes: Sustained Demand with Moderating Growth

The semi-detached home segment in Calgary, a popular choice offering a balance of space and affordability, saw a slight deceleration in sales in July compared to the record-breaking figures of the previous year. Despite this monthly cooling, the year-to-date sales for semi-detached homes remain robust, reaching 1,518 units. This represents a healthy 6.0 per cent increase over sales levels from 2023, showcasing sustained demand in this particular housing type.

Market conditions for semi-detached homes continue to be tight, although they are showing early signs of easing. The sales-to-new listings ratio for July stood at 76 per cent, indicating that a significant majority of new listings are being absorbed by buyers. The months of supply remained relatively low at 1.5 months, still firmly placing this segment in a seller’s market. However, this figure is a slight improvement, suggesting a marginally less competitive environment than observed in prior months.

In terms of pricing, the pace of monthly price growth for semi-detached homes has visibly slowed. Nevertheless, the unadjusted benchmark price for July reached $687,900. This impressive figure is nearly 12 per cent higher than the benchmark price recorded in July of the previous year, underscoring the strong value appreciation in this segment. While the intense upward pressure on prices is beginning to ease on a month-over-month basis, the annual gains highlight the enduring strength and desirability of semi-detached properties within the Calgary real estate market.

Row Homes: Strong Performance and Value Appreciation

Row homes in Calgary continued to exhibit a dynamic market in July, characterized by an increase in new listings that slightly outpaced total sales. This trend led to a reduction in the sales-to-new listings ratio, which fell to 73 per cent for the month. Concurrently, the months of supply for row homes saw an increase, reaching 1.3 months. While these figures indicate a slight shift, conditions in the row home segment largely continue to favor sellers, reflecting sustained buyer interest in this versatile housing type.

The change in market dynamics, specifically the rise in available inventory relative to sales, had a moderating effect on monthly price gains. This means that while prices are not escalating as rapidly month-over-month as they once were, the overall value proposition of row homes remains robust. The benchmark price for row homes in July stood at $464,200. This impressive price point is still nearly 15 per cent higher than the levels recorded in July 2023, showcasing significant year-over-year appreciation.

Row homes continue to be an attractive option for many Calgary buyers, often presenting a more affordable entry point into homeownership compared to detached or semi-detached properties, while still offering private outdoor space and a strong sense of community. The segment’s ability to maintain strong annual price growth despite a slight increase in inventory and a tempering of monthly gains underscores its enduring appeal and solid investment potential in the broader Calgary real estate landscape.

Apartment Condominiums: Affordability and Supply Convergence

The apartment condominium market in Calgary experienced a nuanced July, with sales decreasing to 659 units. A notable aspect of this decline was a significant drop in sales specifically for properties priced under $300,000. This particular trend might suggest a temporary dip in demand within the most affordable segment or a shift in the types of properties available at that price point. However, the overall demand for apartment condominiums remains strong, driven by their relative affordability and appeal to diverse buyer demographics.

Last month, the market saw 1,043 new listings for apartment condominiums. This increase in available units contributed to a drop in the sales-to-new listings ratio, which settled at 63 per cent for July. Critically, this influx of new inventory helped push the months of supply for apartment condominiums to over two months. While still a relatively tight market, this represents a significant improvement in options for prospective buyers, moving away from the extreme shortages observed earlier in the year.

In line with other property types, the monthly price growth for apartment condominiums has begun to slow. Nevertheless, the unadjusted benchmark price of $346,300 for July stands as a testament to the strong performance of this segment. This price is an impressive 17 per cent higher than the levels recorded during the same period last year, marking the highest year-over-year appreciation across all property types. This robust annual growth highlights the strong demand for more accessible housing options in Calgary, and as supply continues to improve, this segment will be key to market balance and overall affordability in the city.

Calgary Real Estate Outlook: Towards a More Balanced Market

July’s real estate report for Calgary clearly signals a market in transition. The significant increase in inventory, particularly for properties above $600,000, is a welcome development that has begun to alleviate the intense pressures of the extreme seller’s market. While conditions still broadly favor sellers across most property types, the rise in “months of supply” suggests a healthier, more balanced environment is gradually emerging. This shift is crucial for fostering greater stability in home prices and offering more choice to buyers who have faced fierce competition.

The expert insights from CREB’s chief economist, Ann-Marie Lurie, reinforce the expectation that as inventories continue their upward trend, Calgary’s real estate market will move closer to equilibrium. This doesn’t necessarily mean a dramatic drop in prices, but rather a moderation in the pace of growth, making the market more predictable for both buyers and sellers. Sustained year-over-year price appreciation across all segments, despite the monthly slowdowns, underscores the underlying strength and desirability of Calgary as a place to live and invest.

For buyers, these evolving conditions present an opportunity for less rushed decisions and potentially more negotiation power, especially in higher price points. For sellers, while the frenetic pace may be easing, strong demand and robust annual price growth indicate that it remains an opportune time to list a property. Monitoring CREB’s ongoing reports will be vital for understanding how these trends evolve in the latter half of 2024, shaping the future of Calgary’s dynamic housing market.

Review CREB’s full reports for the city and region to gain deeper insights into these market trends.