Calgary’s resale homes market showed signs of life in February after one of the slowest Januarys on record, but supply is becoming a critical issue, says the Calgary Real Estate Board (CREB)..Sales in February reached 1,740 homes, a 47% decline from February 2022, but that’s not the number to use as a comparison. A year ago, Calgary’s housing market was just starting to lift off to record-setting highs that will take a long time to be repeated, if ever..All numbers — sales, prices, new listings, etc. — should be compared to the previous month..The 1,740 sales in February compares to 1,119 sales in January, a healthy increase given current market uncertainties, particularly with mortgage rates..Sales of single-family homes were 794 units, at an average price of $679,479, compared to 561 sales in January at an average of $670,897..“While the seasonal monthly gain did see inventories move up over the last two months, levels are still amongst the lowest seen in February and the months of supply fell below two months,” says Ann-Marie Lurie, CREB’s chief economist..“Further tightening conditions (of supply) did cause (the average) price to rise over last month’s levels.”.“While supply continues to remain a challenge relative to demand for lower-priced homes, we are seeing conditions shift into balanced territory for homes priced above $700,000.”.The semi-detached homes sector saw 140 sales in February, up from 111 in January. February’s average price was $585,265, compared to $583,025 in January..“While inventories are starting to rise over the levels seen in the past few months, they remain amongst the lowest levels reported for February,” says Lurie. “The relatively low inventory levels caused the months of supply to fall below two months in February, (creating) conditions that continue to favour the seller.”.There were 315 townhomes sales in February, up from 209 in January. February’s average sales price was $388,463, up from $372,820 in January..The supply of townhomes on the market is limited, says Lurie, due to “only one month of supply and a sales-to-new listings ratio of 87% percent.”.“Townhome sales have remained relatively strong for February as demand shifts toward the affordable product in the market and the persistently tight conditions caused further upward pressure on prices. Unlike the other sectors, prices have reached a new high this month.”.The apartment condominium sector really came into its own during the pandemic, with record low mortgage rates and a lower price point, pulling first-time buyers and investors into the market.Sales in February were 491 units, with an average price of $280,697, compared to January’s 318 sales at an average of $283,993..“Persistently strong sales compared to listings have caused February inventory levels to remain relatively low compared to levels seen over the past eight years and the months of supply once again dropped below two months,” says Lurie. “While prices are still higher than the levels reported last year, they remain nearly 7% below the peak levels reported back in 2014.”.The 1,740 sales in February only lightly offset the 2,389 new listings says Lurie..“Inventory levels all trended up compared to last month. However, inventory levels improved only slightly over the last month and remained amongst the lowest February levels seen since 2006,” she says. “While higher lending rates are impacting sales activity as expected, we are seeing a stronger pullback in new listings, keeping supply levels low and supporting some stronger-than-expected monthly price gain.” .“However, if we do not see a shift in supply, we could see further upward pressure on prices over the near term.”
Calgary’s resale homes market showed signs of life in February after one of the slowest Januarys on record, but supply is becoming a critical issue, says the Calgary Real Estate Board (CREB)..Sales in February reached 1,740 homes, a 47% decline from February 2022, but that’s not the number to use as a comparison. A year ago, Calgary’s housing market was just starting to lift off to record-setting highs that will take a long time to be repeated, if ever..All numbers — sales, prices, new listings, etc. — should be compared to the previous month..The 1,740 sales in February compares to 1,119 sales in January, a healthy increase given current market uncertainties, particularly with mortgage rates..Sales of single-family homes were 794 units, at an average price of $679,479, compared to 561 sales in January at an average of $670,897..“While the seasonal monthly gain did see inventories move up over the last two months, levels are still amongst the lowest seen in February and the months of supply fell below two months,” says Ann-Marie Lurie, CREB’s chief economist..“Further tightening conditions (of supply) did cause (the average) price to rise over last month’s levels.”.“While supply continues to remain a challenge relative to demand for lower-priced homes, we are seeing conditions shift into balanced territory for homes priced above $700,000.”.The semi-detached homes sector saw 140 sales in February, up from 111 in January. February’s average price was $585,265, compared to $583,025 in January..“While inventories are starting to rise over the levels seen in the past few months, they remain amongst the lowest levels reported for February,” says Lurie. “The relatively low inventory levels caused the months of supply to fall below two months in February, (creating) conditions that continue to favour the seller.”.There were 315 townhomes sales in February, up from 209 in January. February’s average sales price was $388,463, up from $372,820 in January..The supply of townhomes on the market is limited, says Lurie, due to “only one month of supply and a sales-to-new listings ratio of 87% percent.”.“Townhome sales have remained relatively strong for February as demand shifts toward the affordable product in the market and the persistently tight conditions caused further upward pressure on prices. Unlike the other sectors, prices have reached a new high this month.”.The apartment condominium sector really came into its own during the pandemic, with record low mortgage rates and a lower price point, pulling first-time buyers and investors into the market.Sales in February were 491 units, with an average price of $280,697, compared to January’s 318 sales at an average of $283,993..“Persistently strong sales compared to listings have caused February inventory levels to remain relatively low compared to levels seen over the past eight years and the months of supply once again dropped below two months,” says Lurie. “While prices are still higher than the levels reported last year, they remain nearly 7% below the peak levels reported back in 2014.”.The 1,740 sales in February only lightly offset the 2,389 new listings says Lurie..“Inventory levels all trended up compared to last month. However, inventory levels improved only slightly over the last month and remained amongst the lowest February levels seen since 2006,” she says. “While higher lending rates are impacting sales activity as expected, we are seeing a stronger pullback in new listings, keeping supply levels low and supporting some stronger-than-expected monthly price gain.” .“However, if we do not see a shift in supply, we could see further upward pressure on prices over the near term.”
