New homes listed for sale in Calgary in September came in at 3,687 units, the highest September total since 2008, supporting growth in standing inventory to 5,064 homes, nearly double the low levels reported in the spring, but still below the average of 6,000 homes typically seen in September, according to the monthly report from the Calgary Real Estate Board (CREB). Rising sales in the upper end of the market were not enough to offset a pullback in the lower price ranges, with sales reaching 2,003 homes, 17% below last year's record high, but still more than 16% higher than the average level for September, says Ann-Marie Lurie, CREB’s chief economist. “We are starting to see a rise in new listings in our market. However, most of the listing growth is occurring in the higher price ranges,” says Lurie. “While demand has stayed strong across all price ranges, the limited choice for lower-priced homes has likely prevented stronger sales in our market.” “While the challenges in the lower price ranges are not expected to change, improved supply combined with lower lending rates should keep demand strong throughout the fall, but without the extreme seller market conditions that contributed to the rapid price growth earlier this year.” Even though increased inventory levels compared to sales are shifting the market toward more balanced conditions, September’s months of supply reached 2.5 months, and while a gain over last year’s record low, conditions are still tilted in favour of sellers. “Additional supply in the market has taken some of the pressure off home prices over the past few months, following stronger-than-expected gains throughout the spring,” says Lurie. “In September, the aggregate unadjusted benchmark price was $596,900, slightly lower than last month but more than 5% higher than last year’s levels.” Here are Lurie’s overviews of the market by home type. Single-family A 9% growth in sales of homes priced at more than $700,000 was not enough to offset the steep pullbacks reported for homes priced below $600,000, resulting in a year-over-year 17% decline in sales to 942 homes. Improved sales for higher-priced homes were possible thanks to increased new listings, with that segment of the market starting to demonstrate more balanced conditions for homes priced at more than $700,000. September’s unadjusted benchmark price was $757,100, down slightly from August but just short of a 9% increase from last year. It is not unusual to see some monthly adjustments in the fall, especially following stronger gains in the spring. With tighter conditions being experienced for lower-priced homes, price growth has also ranged in the single-family sector. Semi-Detached There were 299 new listings and 182 sales in September, taking the sales-to-new listings ratio close to 61%. Despite the gain over the past several months, the improvements in new listings relative to sales have supported rising inventory levels. However, with fewer than 400 units available, inventory levels remain nearly 33% below long-term trends for September. Like the other property types, recent gains in new listings took the months of supply above last year's levels, however conditions continue to favour the seller. Following strong gains in the spring the unadjusted benchmark price in September declined slightly from August but at $678,400 it was 9% higher than last September. Row/townhomes More than 600 new listings came onto the market in September, with 70% priced above $400,000. While new listings improved across most districts, 34% of the new listings were in Calgary’s north and south districts, likely a reflection of the new home activity occurring in those areas. Sales in September reached 377 homes, slightly lower than last year. Homes listed for sale in September rose to 747 units, an improvement over the previous two years, but still below long-term trends. Nonetheless, the rise in inventory relative to sales did cause the months of supply to increase to nearly two months. Conditions continue to favour the seller, but improved choice did slow the pace of price growth. The unadjusted benchmark price was $459,200, 10% higher than September last year. Apartment Condominium There was a large increase of 993 new listings in September and with a drop in sales to 502 homes, the sales-to-new listings ratio dropped to 50% and inventories rose to 1,623 homes. Of the inventory in the market, more than 72% were priced above $300,000, a significant shift compared to last year, where fewer than 58% of the listings were above that range. Months of supply rose to 3.2 months, the highest level since the end of 2021. Improving supply in the new home market is likely contributing to the rise in supply and has taken some of the pressure off home prices. In September, the unadjusted benchmark price was $345,000, 14% higher than September last year.
