**August 1, 2024**
#### Supply Levels Improve, Easing Pressure on Prices
With the busy spring market behind us, we are starting to see shifts in supply levels. In July, there were 2,380 sales and 3,604 new listings, leading to a sales-to-new listings ratio of 66%. This change has supported an increase in inventory, which rose to 4,158 units. Although this is still 33% below the typical July levels, it marks the first time inventory has surpassed 4,000 units in nearly two years.
The majority of this supply growth occurred in homes priced above $600,000. This increase in higher-priced homes has helped ease the extreme sellers’ market conditions experienced throughout the spring.
“While supply challenges persist, particularly for lower-priced homes, the availability of more options in both the new home and resale markets has alleviated some of the upward pressure on home prices this month,” said Ann-Marie Lurie, Chief Economist at CREB®. “This aligns with our expectations for the second half of the year. If inventories continue to rise, we should see more balanced conditions and stability in home prices.”
July sales eased by 10% compared to last year's record high but remained above long-term trends for the month. The pullback in sales has been particularly noticeable in homes priced below $600,000.
Despite the rise in inventory and slower sales, the months of supply increased to 1.8 months. This level still favors sellers but is a significant improvement from the less than one month of supply reported earlier this year.
The improved supply has slowed the pace of monthly price growth across all property types. In July, the total residential benchmark price was $606,700, similar to last month and nearly 8% higher than last year's levels.
********************************************************
### Detached Homes
In July, detached home sales fell by 8%, with a 15% rise in sales for homes priced above $600,000 not enough to offset a 50% decline in lower-priced homes. This decline in lower price ranges reflects limited availability, as inventories and new listings continue to fall for lower-priced homes. Year-to-date detached sales have eased by just over 1% compared to last year.
With 1,098 sales and 1,721 new listings this month, inventories rose to 1,950 units. While still low by historical standards, this gain pushed the months of supply to nearly two months, supporting some stability in prices. The unadjusted benchmark price in July was $767,800, similar to last month but 11% higher than last July.
### Semi-Detached Homes
Relative affordability continues to attract buyers to the semi-detached sector. While sales did slow slightly compared to last year, year-to-date sales reached 1,518 units, a 6% increase over last year. The growth in sales was possible thanks to gains in new listings. However, conditions remain relatively tight, with a 76% sales-to-new listings ratio and months of supply at 1.5 months.
While the pace of monthly price growth has slowed, the unadjusted benchmark price of $687,900 is nearly 12% higher than last year. The highest price growth continues to occur in the city's most affordable North East and East districts.
### Row Homes
Gains in new listings for row homes, relative to a pullback in sales, caused the sales-to-new listings ratio to fall to 73% this month. This supported gains in inventory levels, with the months of supply rising to 1.3 months. While conditions still favor sellers, this shift prevented further monthly price gains. Nonetheless, the benchmark price of $464,200 is still nearly 15% higher than last year. Year-over-year price gains range from a low of 13% in the City Centre and North districts to over 20% in the North East and East districts.
### Apartment Condominiums
July saw a slowdown in apartment condominium sales to 659 units, with a significant drop in sales for properties priced below $300,000. Limited supply choices for lower-priced units prevented stronger sales activity. New listings in July reached 1,043 units, causing the sales-to-new listings ratio to fall to 63%. This supported inventory gains, with months of supply exceeding two months. Improved supply relative to sales helped slow the pace of monthly price growth. However, the unadjusted benchmark price of $346,300 is still 17% higher than last year.
### Regional Market Facts
********************************************************
#### Airdrie
New listings in Airdrie rose to 287 units, the highest level ever reported for July, while sales slowed to 186 units, supporting inventory gains. Despite improvements, the 298 units are still 26% below typical July levels. Inventory gains have occurred across most price ranges, but conditions remain tight, especially in the lower price ranges. The unadjusted benchmark price in July was $553,900, similar to last month but 8% higher than last year.
#### Cochrane
July sales in Cochrane improved over last year, contributing to an 8% year-to-date gain. While new listings also increased compared to last July, it wasn't enough to significantly shift low inventory levels. With a sales-to-new-listings ratio of 83% and months of supply at 1.5 months, the market remained tight, and prices continued to rise. In July, the unadjusted benchmark price reached $576,600, nearly 1% higher than last month and 9% higher than last year.
#### Okotoks
A pullback in sales relative to new listings in Okotoks supported gains in inventory levels. While inventory levels are 25% higher than last year, the 85 units still reflect exceptionally low levels, about half of what is typically seen in July. With a sales-to-new-listings ratio of 78% and months of supply at 1.3 months, conditions continue to favor sellers. Despite monthly price fluctuations, the unadjusted benchmark price in July reached $622,200, over 6% higher than last July.
***information taken from CREB's statistic package released Aug. 1, 2024