Calgary’s real estate market continued to see new listings outnumber sales in September, with the townhome and apartment-condominium sectors adding the most to inventory, says Ann-Marie Lurie, chief economist at the Calgary Real Estate Board (CREB).
“The 1,720 sales in September were not high enough to offset the 3,782 new listings coming onto the market, driving further inventory gains,” says Lurie.
The number of homes for sale at the end of September reached 6,916, 36% higher than September last year and more than 17% higher than the average number of listings in September, says Lurie.
“Resale markets have more competition from new homes and additional supply in the rental market, reducing the sense of urgency amongst potential purchasers,” she says. “The additional supply is coming as demand is slowing, mostly due to slower population growth and persistent uncertainty.”
The additional supply is weighing on prices, adds Lurie.
“Supply relative to demand typically drive shifts in home prices. In September, the sales to new listings ratio dipped to 45% and the months of supply pushed up to four months for the first time since early 2020.”
“This is a higher supply compared to demand than is typically seen in the Calgary market and should this persist, we could see a market that shifts more in favour of the buyer.”
Supply conditions vary by property type, price range and location.
“Inventory gains for apartment-style homes over the past several months have contributed to buyer market conditions in this segment,” says Lurie. “While the detached segment has also seen a rise in the months of supply, it has not been as high as the apartment condo sector.
Here are Lurie’s overview by home type.
Single-family
Sales in September were 859 units, 9% lower than last year. At the same time, new listings rose to 1,905 units, taking the sales-to-new listings ratio down to 45%, the lowest since 2018. It is too early to tell if this trend will continue as prior to this month the single-family market has remained relatively balanced. Improved supply choice is causing prices to decline compared to the record highs in the spring.
September’s unadjusted benchmark price was $749,900, down nearly 1% from August.
The largest price decline was in the northeast and east districts, at more than 6%. Despite recent adjustments on a year-to-date basis, prices remain nearly 2% higher than last year, with the City Centre reporting the highest gain at more than 4%.
Semi-Detached
New listings increased to 361 units in September, while sales fell to 156 units, causing the sales to new listings ratio to drop to 43%, while the months of supply pushed up to nearly four months.
This is a significant shift compared to August, where there was less than three months of supply. It is too early to say if this trend will continue, but so far it has had minimal impact on home prices. September’s price was $684,800, slightly lower than August and nearly 1% higher than last year.
Year-to-date price growth has been more than 3%, as this segment took longer to shift from a seller's market to one that was more balanced.
Row/townhomes
New listings posted modest monthly gains, with 592 new listings against 304 sales, causing the sales-to-new listings ratio falling to 51%, enough to prevent any further monthly gain in the already elevated inventory levels.
September inventory was 1,099 units, the highest September since 2018 and 30% higher than longer-term trends for the month. The largest gains in inventory occurred in the northeast district, which also reported the highest months of supply and price decline compared to last year.
More supply has impacted prices, with the unadjusted benchmark price being $437,100, down less than 1% over August and nearly 5% lower than last year.
Apartment condominium
The most significant adjustment in the market occurred in the apartment condominium sector as improving rental supply, delayed adjustments in interest rates and improved selection for other property types has slowed apartment demand from both first-time buyers and investors.
There were 401 sales and 924 new listings in September, dropping the sales to new listings ratio to 43% and taking inventory to 1,999 units and the months of supply to five.
As elevated levels of supply have persisted since June, prices have been trending down. The September benchmark price was $322,900, down over 1% compared to last month and over 6% compared to last year. Condo prices have slid across all districts compared to last September, with the largest decline in the northeast district at over 10%, while the smallest decline occurred in the city centre at 5%.
Due to a high level of spam content being posted in our comment section below, all comments undergo manual approval by a staff member during regular business hours (Monday - Friday). Your patience is appreciated.