The housing market in Calgary continues to soar, as June witnessed record-breaking apartment condominium sales, setting a new residential record for the city. With a surge in demand, increased migration levels, and a healthy labour market, Calgary’s real estate sector remains robust, offsetting the impact of higher lending rates. Although new listings have shown positive trends, the low inventory situation prevails, placing upward pressure on home prices. Let’s delve into the details of Calgary’s housing market performance in June.
Record-Breaking Sales and High Demand: Calgary’s housing market experienced an exceptional month of sales in June 2023, with a staggering 3,146 total residential sales achieved. This figure marks a new record for the city, highlighting the continued demand for housing. While year-to-date sales are 23 percent lower than last year, they remain substantially higher than pre-pandemic levels.
Improvements in New Listings and Inventory Levels: There is a silver lining in the form of new listings, providing relief and boosting inventory levels. June 2023 witnessed an increase in new listings, indicating some improvements in the market. However, despite these positive developments, the overall inventory for the month stood at 3,458 units, a decline of more than 36 percent compared to last year. These figures represent the lowest inventory levels for June 2023 in nearly two decades. Therefore, the limited inventory continues to favour sellers, creating a market scenario where buyers face upward pressure on home prices.
Detached Homes: A Record Low Inventory: June 2023 saw a monthly gain in new listings for detached homes, slightly increasing inventory levels. However, with only 1,651 units available, this figure represents a new record low for the month. The steepest declines in inventory occurred in homes priced below $600,000, with only 24 percent of the inventory falling within this range, a significant drop from the previous year’s 45 percent. The benchmark price for detached homes reached $685,100 in June 2023, marking a monthly gain of nearly two percent and a six percent increase compared to the previous year. The highest year-over-year price gains were observed in the most affordable districts of North East and East.
Semi-Detached Homes: Tight Market Conditions Drive Price Growth: Semi-detached homes also experienced a slight improvement in new listings, leading to modest gains in inventory levels. However, with only 268 units in inventory and 240 sales, the market remains exceptionally tight, with a months-of-supply rate of just above one month. These persistently tight market conditions have contributed to further price gains for this property type. In June 2023, the benchmark price for semi-detached homes reached $613,100, representing an increase of over two percent compared to the previous month and nearly six percent higher than the previous year.
Row Homes: Favorable Conditions for Sellers: Both sales and new listings of row homes increased compared to the previous month, but the tight market conditions favoured sellers, driving up home prices. With a sales-to-new-listings ratio of 86 percent and months of inventory below one month, prices for row homes soared. In June 2023, the benchmark price reached $400,000, reflecting over two percent growth from the previous month and more than 11 percent higher than the previous year. All districts in Calgary experienced price improvements, with the East, North East, and South districts reporting gains of almost 20 percent year-over-year.
Apartment Condominiums: Demand Continues to Drive Sales and Prices: Sales of apartment condominiums in June 2023 reached 857 units, marking an impressive 48 percent increase compared to the previous year. The consistent growth in sales over the past three months led to an overall 11 percent rise in year-to-date sales compared to the previous year. However, despite improving new listings, the persistent demand for affordable housing has prevented inventory levels from improving. In June 2023, inventory levels stood at 1,116 units, the lowest reported for the month since June 2013. With such tight market conditions, prices for apartment condominiums have experienced six consecutive months of growth. As of June 2023, the benchmark price reached $303,200, a nearly two percent increase from the previous month and a notable 12 percent rise compared to the previous year.
Overall, Calgary’s housing market continues to experience remarkable growth, driven by high demand, a healthy labour market, and increased migration levels. While new listings show some positive signs, the low inventory situation remains challenging, favouring sellers and driving home prices. As the market continues to evolve, observing the impact of new home starts on the supply and whether it will help alleviate the current inventory constraints will be interesting.
Click here to explore the detailed monthly stats package for the City of Calgary
