Calgary Market Update: September 2024
Key Insights
Sales were down 17% YoY, coming off of the historic highs in 2023 (which is no surprise due to the cyclical nature of real estate sales) and they remain within levels from the last 4 years
Inventory continues to go up and could become a concern but remains in seller’s market territory for all housing types
Prices for all housing types are up YoY but the most affordable options are continuing to outperform
Affordable houses and townhomes are disappearing and condos are becoming the “go-to” property type for first-time buyers, and those looking for the best affordability
Over the last 12 months, condos have been the best performing housing type, up nearly 14% YoY
Source: Calgary Real Estate Board
Calgary real estate has slowed from the blistering pace we saw earlier this year, consistent with real estate trends across Canada. Based on historic trends, the Calgary market will likely continue to slow down take a breather over the winter (no one wants to buy a house when it’s cold and snowy out.
Real estate is a long-term game so look at the fundamentals:
Calgary prices are still 50% less than Toronto and Vancouver
Affordability will continue to attract new immigrants and support inter-provincial migration
Growth in the Calgary economy is coming from sources outside of oil & gas
With interest rates coming down, Calgary properties will start being significantly cash flow positive
As a real estate investor, there is no other place in Canada I would rather be investing right now!
This is certainly not the end.
Review Investment Options
For more details and to seize opportunities in Calgary’s dynamic real estate market, don't hesitate to reach out - book a call/zoom below:
Condos
502 condos sold, down nearly 30% from this time last year
There were 993 new listings reflecting new completions coming to the market
72% of units available are priced above $300k, a significant increase compared to last year when only 58% of units were above that
Months of Supply rose to 3.2 months (still a seller’s market) but the highest level since 2021 and Days on Market averaged 33
Benchmark price was $345,000, 14% higher YoY and YTD prices are averaging a 17% gain
Townhomes/Row House
Sales totaled 377 units, a slight drop of 5% from last year with 603 new listings coming to the market (70% priced over $400k)
Inventories rose to 747 units, 94% higher than last year but still below long-term trends
Months of Supply is 1.98 (seller’s market) and Days on Market is just 25 (this is low) which shows anything priced correctly is moving
Benchmark price was $459,200, 10% higher YoY but prices have been relatively flat for the last 6 months
Detached & Semi-Detached (Duplex) Houses
House sales dropped by 17% from this time last year - mainly by houses below $600k (sales for houses over $700k grew by 9%)
Affordable houses under $700k continue to the unicorn and there just aren’t many of these left
The market for homes priced about $700k is becoming much more balanced with more listings coming to the market
Everyone wants a house but fewer can now afford one
Days on Market is still just 27 and Months of Supply is 2.5 (still a seller’s market)
Detached benchmark price was $757,100, a slight decline over last month, but nearly 9% higher YoY
The North East and East continue to report the largest YoY year price gains because these are the most affordable areas.
Area Price Comparison
Regardless of location in Calgary, the most affordable area continue to outperform because even though interest rates have started to come down, affordability continues to be an issue across the city.
Detached houses are up regardless of the location across Calgary and the surrounding area - people are willing to drive longer for that detached house.
Source: Calgary Real Estate Board
Source: Calgary Real Estate Board
Book A Call to Review Investment Options
For more details and to seize opportunities in Calgary’s dynamic real estate market, don't hesitate to reach out - book a call/zoom below: