Cochrane Real Estate Update to January 2024

 

Year-to-date sales across all property types have seen a notable decline of nearly 22 percent, however, this does not indicate much of a moderation in the market as last year broke a number of records. Despite this dip in sales there was a consistent tightening of market conditions, with inventory levels consistently lower than the previous year. 

New listings have played a crucial role in shaping market dynamics. In October, an improvement in new listings over the previous month and the same period last year supported some monthly gains in sales. However, this positive trend in new listings did not fully offset the broader decline in sales. In November, a shift in the sales-to-new listings ratio occurred, dropping below 60 percent for the first time since 2020. The surge in new listings, primarily driven by higher-priced properties, has contributed to increased inventory. However, despite these improvements, inventory levels remain over 30 percent below long-term trends, underscoring ongoing market tightness.

The pricing dynamics have been a notable feature of the Cochrane real estate market. The unadjusted benchmark price, representing the typical property, has demonstrated consistent monthly gains, reaching $548,600 in November. This reflects a monthly increase of over one percent and a substantial year-over-year growth of 11 percent. The year-to-date benchmark prices across all property types have exhibited an upward trajectory, with the apartment condominium sector leading in year-over-year gains, surpassing seven percent.

In December, both sales and new listings continued to fall below the levels reported in the previous year (a record breaking year). Despite recent gains in new listings relative to sales, inventory levels remained over 40 percent below traditional market levels. The detached benchmark prices increased by four percent in 2023 over the previous year.