The real estate market in Calgary experienced an exceptional month in June, with record-breaking sales and unprecedented market conditions. Despite ongoing challenges, such as low inventory levels and high demand, the market demonstrated resilience and continued to favor sellers. This blog post delves into the details of Calgary's housing market, highlighting key trends and regional market facts for various property types.
Record Apartment Condominium Sales: In a surprising turn of events, Calgary witnessed a surge in apartment condominium sales, resulting in a new total residential sales record of 3,146 units in June. Although year-to-date sales were 23 percent lower than the previous year, they remained significantly higher than pre-pandemic levels, showcasing the strength of the market.
Inventory Challenges Persist: While new listings provided some relief, the inventory levels remained at a historic low. In June, the city's inventory stood at 3,458 units, reflecting a decline of over 36 percent compared to the previous year and marking the lowest levels for June in almost two decades. Low inventory levels have been a recurring challenge, especially for homes priced below $600,000, contributing to further price gains.
Detached Homes: Despite a monthly increase in new listings, inventory levels for detached homes hit a record low of 1,651 units in June. The steepest declines in inventory were observed in homes priced below $600,000. Limited inventory in lower price ranges continued to favor sellers, resulting in further gains in home prices. The benchmark price for detached homes reached $685,100 in June, showing a monthly increase of nearly two percent and a year-over-year increase of six percent. The North East and East districts witnessed the highest year-over-year price gains.
Semi-Detached Homes: New listings for semi-detached homes improved in June, supporting modest gains in inventory levels. However, the persistently tight market conditions, with just over one month's supply, contributed to further price gains. The benchmark price for semi-detached homes reached $613,100, representing a monthly increase of over two percent and a year-over-year increase of nearly six percent. Price growth varied across districts, with the East district experiencing the highest year-over-year growth at 17 percent.
Row Homes: Both sales and new listings for row homes showed positive trends in June. However, with a sales-to-new-listings ratio of 86 percent and inventory levels below one month, the market continued to favor sellers, driving upward pressure on prices. The benchmark price for row homes reached $400,000, reflecting a monthly increase of over two percent and a year-over-year increase of over 11 percent. The East, North East, and South districts saw the most significant monthly gains, with year-over-year price increases of nearly 20 percent.
Apartment Condominiums: Sales for apartment condominiums experienced a significant increase of 48 percent compared to the previous year, thanks to improving new listings. However, persistently strong demand for affordable units limited improvements in inventory levels. In June, inventory levels reached their lowest point since June 2013, with 1,116 units available. Tight market conditions contributed to the sixth consecutive month of price increases, with the benchmark price reaching $303,200, nearly two percent higher than the previous month and 12 percent higher than last year.
Regional Market Facts: Airdrie: Airdrie's housing market reported slower sales activity due to a pullback in new listings. However, the sales-to-new-listings ratio remained elevated, favoring sellers. Airdrie also experienced gains in home prices, with the unadjusted benchmark price reaching a new record high of $511,100.
Cochrane: Sales activity in Cochrane eased in June, contributing to a year-to-date decline of 30 percent. However, sales levels remained significantly higher than pre-pandemic levels. Low inventory levels limited consumer choices and propelled further gains in home prices. The unadjusted benchmark price in Cochrane reached $526,500, nearly two percent higher than the previous month and last year.
Okotoks: Okotoks witnessed a sales-to-new-listings ratio above 100 percent, causing inventory declines and reaching the lowest months of supply reported for June. Persistently tight market conditions led to a record-high unadjusted benchmark price of $585,300, reflecting a two percent increase from the previous month and six percent higher than last year.
Conclusion: Calgary's housing market experienced another record-breaking month in June, driven by strong sales numbers and persistent inventory challenges. The market continued to favor sellers, leading to further price gains across property types. Despite the ongoing supply constraints, new listings showed signs of improvement, offering a glimmer of hope for a balanced market in the future. As the city adapts to changing dynamics, real estate trends in Calgary will continue to be closely monitored.