The Calgary May Market Explained (info from the Calgary Real Estate Board (CREB)):
DETACHED:
For Sellers:
If you are selling a detached home in Calgary, there are important dynamics to consider. While there has been a rise in sales for homes priced above $600,000, there has been a decline in sales for lower-priced homes. In May, there were 1,486 home sales, which is eight percent lower compared to the previous year. This means that there is less competition for higher-priced detached homes, which could work to your advantage. However, for lower-priced detached homes, the market is more challenging due to decreased sales activity.
Additionally, the number of new listings for homes priced below $700,000 is falling. This limited supply of lower-priced homes gives you an edge as a seller because there are fewer options available for buyers looking for affordable detached homes. Furthermore, even for higher-priced properties, the market remains competitive due to strong demand. This high demand across all price ranges is driving further price gains, meaning you could potentially achieve a higher sale price for your detached home.
In May, the detached benchmark price reached $674,000, which is nearly two percent higher than the previous month and over four percent higher than the peak price recorded last year. Each district in Calgary reported new record high prices for detached homes. The year-over-year price gains ranged from a high of 12 percent in the East District to a low of two percent in the City Centre. These price increases indicate the overall upward trend in detached home prices, which can work to your advantage as a seller.
For Buyers:
If you are a buyer looking for a detached home in Calgary, there are key factors to be aware of. While sales have increased for higher-priced detached homes, there has been a decline in sales for lower-priced properties. This means that there may be less competition for higher-priced homes, giving you more negotiating power. However, for lower-priced detached homes, the market is more competitive due to limited supply and strong demand.
The number of new listings for homes priced below $700,000 is falling, making it more challenging to find affordable detached homes. With fewer options available, you may need to act quickly and be prepared to make competitive offers when you find a suitable property.
In May, the detached benchmark price reached $674,000, indicating a nearly two percent increase compared to the previous month and over four percent increase compared to last year's peak price. Each district in Calgary reported new record high prices for detached homes. The year-over-year price gains varied across districts, with the East District experiencing the highest increase at 12 percent, while the City Centre saw a more modest two percent increase. These price gains highlight the overall appreciation in detached home prices, which could impact your buying decision.
Overall, the detached housing market in Calgary presents both opportunities and challenges for buyers and sellers. It's important to consider the specific dynamics of the price range you are interested in and be prepared to navigate the competitive market conditions accordingly.
SEMI - DETACHED
For Sellers:
In Calgary's semi-detached housing sector, there is good news for sellers. Sales of semi-detached homes have risen to near-record highs, indicating strong demand for these properties. This means that if you are a seller, you have a higher chance of attracting potential buyers and achieving a successful sale. The increased sales activity also suggests that there is a market for semi-detached homes, making it an opportune time to list your property. Furthermore, the tight inventory levels, with fewer new listings entering the market, work in your favor by reducing competition and potentially allowing you to secure a better price for your home. With the rising prices in this segment, you may benefit from the overall appreciation of semi-detached homes in Calgary.
For Buyers:
For buyers interested in semi-detached homes in Calgary, there are important considerations to keep in mind. Firstly, the high sales figures indicate that many buyers are actively seeking these types of properties. This suggests that semi-detached homes hold value and are in demand, making them a worthwhile investment. Additionally, the limited inventory means that you might face some competition from other buyers. However, it's worth noting that the tight market conditions have resulted in further price gains, indicating that purchasing a semi-detached home now could be a wise financial decision. With prices on the rise, buying sooner rather than later may allow you to benefit from potential future appreciation. Overall, the increased sales activity and rising prices underscore the desirability and potential value of semi-detached homes in Calgary.
ROW STYLE HOMES
For Sellers:
If you are selling a row-style home in Calgary, there are important factors to consider. In May, there was an improvement in new listings compared to earlier in the year. However, despite the increase in new listings, the high sales-to-new listings ratio of 89 percent indicates that the market remains highly competitive, and there has not been a significant shift in the low inventory situation. This means that the limited supply of row homes continues to be a prevailing trend, contributing to the current market conditions.
Although sales activity for row homes is still lower than last year, this is primarily due to the lack of available supply in this segment of the market. The inventory levels have decreased by 50 percent compared to the previous year, further highlighting the scarcity of row homes for sale.
With such limited supply, it's not surprising that prices for row homes continue to rise. In May, the benchmark price reached $390,500, which represents a two percent increase compared to the previous month and nearly nine percent higher than the peak price observed last year. This upward trend in prices is consistent across all districts in Calgary. The North East, South, and East districts experienced the highest year-over-year price gains, exceeding 15 percent. Conversely, the City Centre, North West, and South East districts reported slower price gains, but still at rates of over seven percent.
For Buyers:
If you are in the market to purchase a row-style home in Calgary, there are important considerations to be aware of. Despite an improvement in new listings compared to earlier in the year, the high sales-to-new listings ratio of 89 percent indicates a highly competitive market. This means that the limited inventory of row homes continues to create a challenging environment for buyers, with high demand and limited options available.
The scarcity of available row homes is reflected in the decreased sales activity compared to the previous year. However, it's important to note that this decline is primarily due to the lack of supply rather than reduced buyer interest. The inventory levels have significantly dropped by 50 percent compared to last year, making it more difficult to find and secure a row home.
Due to the low inventory levels, prices for row homes continue to rise. In May, the benchmark price reached $390,500, which represents a two percent increase compared to the previous month and nearly nine percent higher than the peak price observed last year. These price gains are consistent across all districts in Calgary, with the North East, South, and East districts experiencing the highest year-over-year increases of over 15 percent. The City Centre, North West, and South East districts saw slower price gains, but still at rates of over seven percent.
As a buyer, it's important to be prepared for a competitive market and potential price increases when considering a row-style home. Acting swiftly and being flexible with your preferences can increase your chances of finding a suitable property in this limited inventory environment.
APARTMENT CONDOMINIUM
For Sellers:
If you are selling an apartment condominium in Calgary, the market conditions present favorable opportunities. In May, sales of apartment condominiums reached 858 units, representing a significant year-over-year gain of 36 percent. This surge in sales has contributed to a new record high for year-to-date sales, with a four percent increase compared to previous years. The recent increase in new listings has played a role in driving stronger sales, as there were 1,025 new listings in May, an eight percent increase compared to the previous year.
Despite the increase in new listings, the sales-to-new listings ratio remains high at 84 percent. This indicates that the market remains competitive, and the limited inventory situation persists. Inventory levels in May were 23 percent lower than what was available in the market in May 2022. The low inventory levels and high sales activity have resulted in a low months of supply, with just over one month's worth of inventory available. These tight market conditions work to the advantage of sellers, as it can potentially lead to higher prices and a favorable selling environment.
In terms of pricing, apartment condominiums have experienced further price gains in May. The unadjusted benchmark price reached $298,600, indicating a monthly gain of over one percent and a significant year-over-year gain of nearly 11 percent. This recent growth has brought the unadjusted prices of apartment condominiums back to 2014 levels, signifying a strong appreciation in value. While not all districts reported new record high prices, the North, North West, West, and South East districts have shown a full recovery in prices. Overall, year-over-year price growth varied across districts, with the North District experiencing the highest increase at 16 percent, and the City Centre seeing a comparatively lower growth of 10 percent.
For Buyers:
If you are in the market for an apartment condominium in Calgary, there are important insights to consider. The high sales figures in May, with a year-over-year gain of 36 percent, indicate strong buyer demand in this segment. This increased sales activity is a result of recent gains in new listings, which provide buyers with more options to choose from. The market conditions have remained competitive, as reflected in the high sales-to-new listings ratio of 84 percent. This means that while more listings have become available, the limited inventory situation persists, resulting in a highly competitive market.
Inventory levels in May were 23 percent lower compared to the previous year, indicating a scarcity of available apartment condominiums. With low inventory and strong demand, the months of supply remain low, slightly above one month. This means that as a buyer, you need to act promptly and be prepared to make competitive offers to secure a desired property.
In terms of pricing, apartment condominiums have seen significant price gains. In May, the unadjusted benchmark price reached $298,600, reflecting a monthly gain of over one percent and a substantial year-over-year gain of nearly 11 percent. This indicates an appreciation in value and suggests that apartment condominiums can be a worthwhile investment. However, it's important to note that price growth varies across districts. While some areas have reported new record high prices, such as the North, North West, West, and South East districts, other areas, like the City Centre, have shown relatively lower growth.
Overall, the apartment condominium market in Calgary offers both opportunities and challenges for buyers and sellers. The strong sales figures, limited inventory, and price gains highlight the current market dynamics. As a buyer, being proactive and prepared to compete can increase your chances of finding and securing a suitable apartment condominium.