City Of Calgary Update
New listings have risen for the fourth consecutive quarter relative to levels reported in the previous year. While much of the gains have been occurring in the upper price ranges of each property type, rising prices and persistently high lending rates are encouraging more sellers to list their property. The rise in new listings compared to sales did cause the sales-to-new listings ratio to fall below 80 per cent, the first time since the first quarter of 2023. While this shift has supported some inventory gains, it is important to note that with a second-quarter salesto-new-listings ratio of 75 per cent and a months of supply of one month, our market continues to favour the seller. In the second quarter, sales slowed by three per cent compared to levels reported last year at this time. The decline was driven by lower-priced properties, where supply levels are the lowest. While sales did slow, levels remained 29 per cent above long-term trends. At the end of the first half of the year, sales were nearly six per cent higher than last year’s levels. Demand in Calgary has been fuelled by a surge in migrants, thanks partly to our relative affordability and previous job growth. While interprovincial migration into the province slowed in the first quarter compared to last year, we continue to experience gains from all provinces, with 72 per cent of the migrants coming from BC and Ontario. Slower gains in migration and a shift in employment should take some pressure off housing demand, allowing some pent-up demand to work through the system and help bring the market out of the extreme sellers’ market conditions. So far this year, home prices have risen by 10 per cent, with the most significant gain occurring for row properties at 19 per cent and the lowest growth of 13 per cent for detached and semi-detached homes. Moving forward, more supply generated through the new home sector will help support a better-supplied rental and ownership market, taking some of the pressure off home prices. We anticipate slowing price growth throughout the year’s second half as supply levels improve. However, conditions will vary based on property type and price range, as much of the supply growth is expected to impact higher-priced properties, slowing their price growth. Meanwhile, persistently tight conditions for the most affordable properties will continue to drive further price increases.
Detached
New listings picked up in the second quarter thanks to gains for homes priced above $600,000. Sales also rose for these higher-priced homes, but not enough to offset declines for lower-priced homes with limited supply. While these adjustments did cause the market to shift away from the tighter conditions reported in the first quarter, the market continues favouring the seller, driving quarterly and year-over-year price gains.
Semi-Detached
New listings improved in the second quarter relative to sales. However, shifts in sales and new listings did little to impact inventory levels, which averaged 54 per cent below long-term trends in the second quarter. With an average of one month of supply throughout the second quarter, we saw further upward pressure on prices.
Row
While new listings for row homes improved, so did the sales, keeping the sales-to-new listings ratio elevated at 82 per cent and preventing any significant changes to inventory levels. While supply remained similar to last year’s low levels, there was a significant decline for units priced below $400,000, nearly offsetting the gains in the upper ranges. Overall, the persistently tight conditions drove significant price growth both quarterly and year-over-year.
Apartment
Second quarter sales reached a record high, as purchasers sought relatively affordable products in the Calgary market. At the same time, new listings also rose to record high levels this quarter. The gain in new listings outpaced sales gains, and the sales-to-new-listings ratio fell to 74 per cent. While the gain took some of the pressure off quarterly price North West $312,100 North $339,300 growth compared to the previous quarter, apartment condominium prices still rose by 20 per cent compared to last year at this time. Like other property types, the most affordable sector of the market struggled with lower-priced supply.
Resources