Calgary Real Estate Market for October 2023
Calgary Real Estate Statistics for October 2023
Calgary Real Estate Market Continues with Price Gains as Inventory Levels Remain Low
In Calgary's real estate sector, the trend of escalating prices persists, driven by the persistent scarcity of available properties. The sales activity for October exhibited a typical slowdown, in line with seasonal trends. However, there were 2,171 transactions recorded, marking a substantial 17 percent increase compared to the same period last year, and representing one of the highest sales figures ever reported for the month of October. This surge in sales activity can be primarily attributed to the growing demand for apartment condominiums, as consumers seek more affordable housing solutions amidst the backdrop of soaring interest rates.
Notably, the influx of new property listings demonstrated a marked improvement this month compared to the previous year, with a total of 2,684 units entering the market. This figure signifies the most robust October levels observed since 2015. Despite this notable increase, the overall inventory levels remain remarkably tight, standing at over 40 percent lower than the typical inventory levels expected for the month of October.
Ann-Marie Lurie, the Chief Economist at CREB®, offered insights into the ongoing challenges in the market, stating, "Despite some recent improvements in new listings, supply levels remain challenging in our market." She further added, "It will take some time to see a shift toward more balanced conditions and ultimately more price stability."
With an available housing supply of only one and a half months, the continuous upward pressure on housing prices is apparent. In October, the unadjusted benchmark price surged to an impressive $571,600, representing a substantial increase compared to the previous month and a remarkable 10 percent surge when compared to the prices from October in the preceding year.
The sustained momentum in Calgary's real estate market, with elevated sales figures and a limited supply of housing, underscores the enduring challenges faced by both buyers and sellers in the region. As consumers seek cost-effective housing options amid the backdrop of rising interest rates, the demand for apartment condominiums remains robust, propelling sales activity to new heights. Although there have been positive developments in new property listings, the overall supply of available properties remains constrained, leading to an ongoing imbalance in the market. Consequently, the city continues to experience upward pressure on housing prices, with the unadjusted benchmark price reaching noteworthy heights in October.
Both sales and fresh property listings demonstrated improvements compared to the figures from the same period last October. Nevertheless, the current month recorded a total of 1,302 new property listings alongside 976 completed sales, resulting in a deceleration of inventory levels over the past month. It's worth noting that these inventory levels are the lowest ever reported for the month of October. These reductions in inventory have been particularly pronounced for homes priced below $700,000, intensifying the scarcity of options in this price range. The only segment where conditions have slightly eased compared to the previous year is among homes with a price tag exceeding $1,000,000, where the months-of-supply metric has risen to 4.3 months.
Persistent tight market conditions persistently fuel upward movements in prices within the detached housing market. By the end of October, the unadjusted benchmark price had reached $697,600, reflecting a modest uptick from the previous month and an impressive year-over-year increase of 12 percent. Price trends exhibited an upward trajectory over the last month across all districts, with the exception of the South East. It's important to highlight that year-to-date benchmark prices experienced the most significant increases in the North East and East districts.
Semi Detached Calgary Homes
During the month of October, there was a notable improvement in the number of new property listings when compared to the relatively low levels recorded in the previous year. However, the data reveals that despite 235 new listings, only 179 sales were realized. This resulted in a sales to new listings ratio remaining relatively high at 76 percent, which, in turn, prevented any substantial alteration in inventory levels. It's important to emphasize that inventory levels are now approximately half of what is traditionally observed in the month of October, reaching their lowest point since October 2005.
The prevailing and unrelenting tight market conditions have been instrumental in driving price growth. In October, the unadjusted benchmark price experienced an increase over the preceding month, surging to $628,700. This represents a year-over-year gain of an impressive 13 percent. Price trends in October displayed an upward trajectory across most districts, with the most significant monthly gain observed in the City Centre district. In a broader context, similar to the detached housing sector's year-to-date performance, the most significant price growth was witnessed in the more affordable districts of the North East and East, underscoring the persistent demand in these areas.
In the current month, a total of 420 fresh property listings emerged, and they were met with 375 successful sales, sustaining an impressively high sales-to-new listings ratio of 89 percent. This substantial ratio effectively prevented any notable shift in inventory levels. The inventory levels for row houses have now reached their lowest point since October 2005, underlining the extraordinary scarcity of available properties in this category. Concurrently, October sales have soared to a record high for this month, maintaining the months of supply at a meager one month.
These unyielding market conditions, characterized by a persistent lack of available properties, continue to bolster price increases this month. In October, the unadjusted benchmark price surged to $425,200, marking a monthly gain of over one percent. Notably, this price is nearly 19 percent higher than it was in the same month last year. Price hikes have been discernible across most districts, with the City Centre witnessing the most significant monthly gain. Interestingly, despite this monthly surge, the City Centre has recorded the lowest year-to-date price growth compared to the other districts, further illustrating the unique dynamics within the real estate market.
The month of October witnessed a remarkable achievement with record high sales, primarily attributable to a substantial surge in new listings. Despite the influx of 727 new listings, the sales to new listings ratio maintained its impressively high standing at 88 percent, indicating a robust market. This persistent trend has been instrumental in driving inventories down. The decline in inventory levels has been most pronounced within the category of condominiums priced below $300,000, which now represent only 38 percent of the total inventory, marking a significant decline from the 53 percent reported in the previous year.
This persistent seller's market condition has played a pivotal role in generating recent gains in property prices. For the month of October, the unadjusted benchmark price stood at $316,600, reflecting a monthly gain exceeding one percent. Impressively, this price reflects a substantial year-over-year increase of 16 percent, underscoring the remarkable appreciation in property values. Importantly, the year-to-date data shows that price gains have been observed across every district in the city, with some of the most substantial increases recorded in the more affordable North East and East districts, highlighting the widespread and resilient demand in these areas.