Calgary Real Estate Market September 2023
Posted by Crystal Tost on Tuesday, October 3, 2023 at 9:15 AM By Crystal Tost / October 3, 2023 Comment
Calgary Real Estate Market Statistics for September 2023
Calgary Real Estate Market: Calgary's Real Estate Market Soars to Unprecedented Heights in September, Yet Supply Remains a Persistent Issue
The Calgary real estate market continues to make headlines as it reached new heights in September, with a staggering 2,441 homes changing hands. Despite experiencing consistent year-over-year growth over the last four months, the cumulative sales for this year still fall short by nearly 12 percent compared to the levels witnessed in the previous year.
A noteworthy development in September was the influx of new listings, which showed significant improvement when compared to the previous year. This surge in listings led to a decline in the sales-to-new listings ratio, which currently stands at 76 percent. This adjustment has successfully prevented any further monthly declines in the inventory levels.
However, the overall inventory levels for September remained over 24 percent lower than the levels observed in the same period last year. Furthermore, when assessed in the context of sales activity, the inventory levels have not shifted sufficiently to trigger significant changes in the equilibrium between supply and demand. As of September, the "months of supply" metric continues to remain notably low, standing at less than two months.
Commenting on this situation, CREB® Chief Economist Ann-Marie Lurie addressed the ongoing supply challenges, stating, "The issue of supply has persisted in our market, primarily due to robust inter-provincial migration, which has amplified the demand for housing, even in the face of higher lending rates. While new listings are indeed on the rise, they have yet to alleviate the ongoing seller's market conditions."
In September, the unadjusted residential benchmark price was recorded at $570,300, mirroring the figures from the previous month and demonstrating a significant year-over-year increase of nearly nine percent. Calgary's real estate market remains a dynamic and evolving landscape, with supply constraints continuing to shape the industry's trajectory.
Calgary Real Estate Market Report: September 2023
Calgary's Housing Market Dynamics: A Detailed Analysis
Detached Homes - See Calgary Houses for Sale
Calgary's real estate landscape continues to break records, with the number of detached home sales reaching unprecedented levels in September. At a remarkable 2,441 sales, this marks a significant achievement. However, it's worth noting that despite this impressive year-over-year growth trend, year-to-date sales figures are still trailing behind by approximately 12 percent compared to the previous year.
One of the key factors contributing to this phenomenon is the persistently low inventory levels, especially in homes priced below $700,000. The sales-to-new listings ratio remains high at 76 percent. While there has been some improvement in supply for higher-priced properties, the segment of homes below $700,000 is grappling with less than one month of supply.
Despite the tight market conditions, the unadjusted benchmark price has remained relatively stable compared to the previous month, primarily due to a monthly price adjustment in the West end of the city offsetting gains in other districts. Overall, the benchmark price stands at $696,100, reflecting a notable year-over-year increase of over 11 percent. The magnitude of price gains varies across districts, ranging from a high of 20 percent in the East district to a more modest nine percent in the City Centre.
Semi-Detached Homes - See Calgary Homes for Sale
September brought a surge in new listings compared to sales activity in the semi-detached home segment. This shift caused the sales-to-new listings ratio to drop below 70 percent, marking the first time this has occurred since September of the previous year. While this adjustment supported a monthly increase in inventory levels, with 295 units available, inventories have not been this low since September 2005.
Following ten consecutive monthly price gains, benchmark prices in September experienced a slight pause. However, at a benchmark price of $621,300, prices are still notably higher, up by 11 percent compared to the previous year. The temporary pause in price growth was primarily driven by adjustments in the West and North West districts, where the months of supply exceeded levels reported in the previous year and month.
Row Houses- See Calgary Townhomes for Sale
The row house segment experienced a pullback in monthly sales, which outpaced the reduction in new listings. As a result, the sales-to-new listings ratio fell to 84 percent. While market conditions remain exceptionally tight, this marks an improvement compared to the 90 percent average observed since April. The shift in this ratio prevented further monthly declines in inventory levels, although inventory remains scarce, with less than one month of supply, exerting upward pressure on prices.
The benchmark price in September reached $419,400, reflecting a 1.5 percent monthly gain and a substantial 17 percent increase compared to the previous year. Price gains have been consistent across all districts, with the most significant increases occurring in the more affordable areas of the city.
Apartment Condominiums - See Calgary Condos for Sale
September saw an influx of new listings, reaching the highest levels reported for this month. This contributed to record-high sales figures, with year-to-date apartment condominium sales reaching 6,286, a remarkable 25 percent gain over the previous year. Tight rental market conditions and higher lending rates have sustained demand for apartment-style properties. Although inventory levels saw a modest increase compared to the previous month, conditions remain exceptionally tight, with only 1.5 months of supply.
These persistent tight market conditions have continued to drive price gains. In September, the unadjusted benchmark price reached $312,800, a 1.2 percent increase over the previous month and nearly 15 percent higher than the previous year.
Regional Market Insights
Airdrie - See Airdrie Homes for Sale
In Airdrie, the sales-to-new-listings ratio dropped to 70 percent, the first time this has happened since 2020. Improved new listings relative to sales supported a modest monthly increase in inventory levels. However, inventory levels for September remain amongst the lowest reported since 2005, keeping the months of supply exceptionally low at just over one month.
The tight market conditions have led to further price gains, with the unadjusted benchmark price reaching $518,000 in September, reflecting a year-over-year increase of over eight percent.
Cochrane - See Cochrane Homes for Sale
Sales and new listings both eased in September, leaving inventory levels relatively stable. Although inventories are nearly 40 percent lower than long-term trends, they are not at record lows. The shift in the sales-to-inventory ratio caused the months of supply to rise above two months, the first time this has occurred since February.
While conditions remain relatively tight, this shift has likely prevented further upward pressure on monthly home prices. The unadjusted benchmark price in September was $532,700, slightly lower than the previous month due to adjustments in various housing segments. Despite this monthly pause, total residential prices are still over five percent higher than those in September 2022.
Okotoks - See Okotoks Homes for Sale
In Okotoks, the sales-to-new-listings ratio dropped to 75 percent in September, the lowest ratio seen since August 2022. The increase in new listings relative to sales prevented any further monthly declines in inventory levels. However, with only 70 units available, inventory levels are still amongst the lowest reported monthly levels in over 20 years.
While both inventory and sales experienced a modest adjustment, causing the months of supply to rise over last month's levels, conditions remain relatively tight, especially for semi-detached, row, and apartment-style properties. The unadjusted benchmark price in September was $580,200, nearly nine percent higher than the previous year.
Calgary's real estate market continues to display resilience and growth, with some segments breaking records, despite supply challenges and shifting dynamics in different districts. As we move forward, these insights provide a comprehensive view of the city's housing landscape, allowing both buyers and sellers to navigate the market with greater clarity.