Calgary Home Sales Remain Strong Despite Shortages in Lower Price Ranges

 
Calgary's real estate market continues to show remarkable resilience even as it grapples with a shortage of homes in the lower price ranges. In May, the city recorded a total of 3,092 resale home sales. Although this figure is nearly one percent below last year's record high, it still stands a significant 34 percent higher than long-term trends for the month.
 

Market Dynamics and Supply Challenges

The pullback in sales can largely be attributed to a decline in lower-priced detached and semi-detached homes. The inventory in these categories remains limited compared to last year, significantly affecting the overall sales numbers. 
 
 Ann-Marie Lurie, Chief Economist at CREB®, commented, "Although new listings have increased, much of this growth is in higher price ranges for each property type. Our strong economic situation has supported sales growth in these higher price ranges. However, this month's sales could not offset the declines in the lower price ranges due to a lack of supply choice."
 

New Listings and Inventory Trends

May saw an influx of 4,333 new listings, marking a nearly 19 percent increase compared to last year. This uplift in new listings, however, has not proportionately balanced sales, causing the sales-to-new listings ratio to drop to 71 percent. Despite a modest year-over-year inventory gain, the overall inventory levels are still almost half of what is typically expected in May. Interestingly, most of the inventory gains are focused on homes priced above $700,000.
 

Seller's Market Continues

Despite a slight improvement in inventory, Calgary continues to be a seller's market. The city sustains one month of supply, with several districts reporting even less than that. The City Centre has the highest supply-to-sales ratio at approximately one and a half months. These tight market conditions have been a primary driver for price growth across all districts in Calgary.
 

Price Trends

The scarcity of homes has driven up prices, as seen in May, where the unadjusted total residential benchmark price reached $605,300. This is nearly one percent higher than the previous month and a significant 10 percent increase compared to last May. 
 
In summary, while Calgary’s real estate market remains robust, the lack of supply in the lower price ranges poses challenges. However, the city's strong economic condition has provided a cushion, fostering growth in higher-priced home sales. As the market continues to evolve, buyers and sellers must navigate these trends thoughtfully.
 
By keeping a close watch on Calgary's real estate activities, savvy participants can better understand the marketplace and make informed decisions. Whether you’re selling or buying, being aware of current conditions is crucial for achieving your real estate goals in Calgary's dynamic market.