Calgary Real Estate Update to April 2024

 

Over the past three months, the Calgary real estate market has demonstrated significant shifts across various key statistics, reflecting a dynamic and evolving landscape. One notable trend is the consistent increase in sales activity throughout the period, with March sales rising to 2,664 units, marking a 10% year-over-year gain, while February and January also witnessed substantial upticks in sales. This surge in demand has been met with challenges in the supply department, as new listings struggled to keep pace with sales, resulting in tightening inventory levels across the board.

The sales-to-new listings ratio, a critical indicator of market balance, soared over the three-month period, reaching exceptionally high levels in March, February, and January. This imbalance has driven the months of supply metric to fall below one month in March, further exacerbating the scarcity of available properties in the market. The persistent tightness in supply conditions has favored sellers, contributing to upward pressure on home prices across all property types.

Furthermore, inventory levels have experienced notable declines, particularly for properties priced below $1,000,000, with the steepest drops observed in homes priced below $500,000. This trend underscores the growing challenge of affordability in the Calgary market, as demand continues to outpace available supply, particularly in the more affordable price segments.

The unadjusted benchmark price has consistently risen over the three-month period, reflecting the sustained upward trajectory of home prices amidst the market's tight conditions. This price appreciation has been most pronounced for relatively more affordable property types, such as row and apartment-style homes, highlighting the shifting dynamics of buyer preferences in response to market constraints.

Overall, the Calgary real estate market has witnessed a period of intense activity and tightening conditions over the past three months, driven by strong demand, limited supply, and sustained price gains. As stakeholders navigate this dynamic landscape, close attention to supply dynamics, affordability concerns, and market trends will be crucial in understanding the evolving dynamics of Calgary's real estate market.