The autumn season in Calgary is not just about the cozy weather and colourful leaves but also the bustling real estate market. In October 2023, the housing market showed remarkable resilience despite ongoing supply challenges. Let’s dive into the details!
Impressive October Sales
2023 October’s real estate numbers are truly remarkable. A total of 2,171 homes were sold, which is 17 percent higher than the same month last year. These figures rank among the highest ever recorded for October. Apartment condominiums were a significant driver of this surge in sales as buyers looked for more affordable housing options with rising interest rates.
Positive New Listings
In October 2023, new listings also showed a positive trend, with 2,684 units hitting the market. This is the highest level for October since 2015. However, strong sales have prevented any significant increase in available homes for buyers. In fact, the inventory remains more than 40 percent lower than what’s typically seen in October.
Ongoing Supply Challenges
The limited supply of homes continues to be a challenge. According to CREB® Chief Economist Ann-Marie Lurie, the supply situation remains challenging despite some improvements in new listings. It will take time to achieve a more balanced market and stable prices.
Rising Home Prices
The limited supply of homes is driving up prices. In October 2023, the benchmark price for homes reached $571,600. This is almost 10 percent higher compared to the same month last year.
Let’s take a closer look at different types of homes:
- Detached Homes: The realm of detached homes has also witnessed notable changes when comparing sales and new listings to the previous October. In October 2023, the market saw 1,302 new listings alongside 976 homes sold, which hinted at a slowdown in inventory levels. This slowdown can be attributed to the scarcity of homes priced below $700,000, which has created a highly competitive environment for those seeking more affordable housing. In contrast, conditions are relatively less competitive for homes priced above $1,000,000, where the months-of-supply has risen to 4.3 months. These tight market conditions for detached homes have propelled further increases in prices. By October’s end, the benchmark price reached $697,600, marking an impressive 12 percent surge compared to the same month the previous year.
- Semi-Detached Homes: The semi-detached housing sector also experienced positive shifts in October 2023, particularly concerning new listings. During this period, 235 new listings entered the market, showing a glimmer of hope. However, despite this influx, the inventory remains decidedly tight. October 2023 saw 179 homes sold, reinforcing the competitive environment for those searching for semi-detached properties. This uptick in demand, coupled with limited supply, has driven prices upward, resulting in a 13 percent year-over-year price increase. In October 2023, the benchmark price saw an increase over the previous month, reaching $628,700. Notably, the most affordable districts in the North East and East have witnessed the most significant price growth, highlighting the dynamic nature of Calgary’s real estate market.
- Row Properties: Row properties continue to face stringent market conditions. The fact that many homes are being sold compared to the number of new listings has effectively kept the number of available homes from increasing significantly. In October 2023, the unadjusted benchmark price for row properties reached an impressive $425,200. This figure signifies a robust nearly 19 percent increase compared to the previous year, showcasing the persistent vigour of Calgary’s real estate market.
- Apartment Condominiums: The apartment condominium market achieved record-high sales in October 2023, primarily due to a significant increase in new listings. However, even with 727 new listings and 641 units sold, the number of available condos remained scarce. These increased demand and limited supply conditions led to a 16 percent year-over-year price increase. The benchmark price for October 2023 was $316,600. Notably, some of the most significant price gains occurred in the more affordable North East and East districts, making them noteworthy areas for potential buyers to consider.
In summary, October 2023 showcased a robust real estate market in Calgary with rising prices. Limited supply and strong demand continue to make the market competitive. As the real estate landscape evolves, staying informed and adaptable is crucial for both buyers and sellers.
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