The real estate market in Calgary experienced a significant increase in new listings in July, providing much-needed relief for prospective buyers who have been struggling with limited options and rising prices. According to the Calgary Real Estate Board (CREB), there were 3,604 new listings in the city, representing an 11% year-over-year increase. This surge in supply has helped to ease some of the upward pressure on home prices, with the months of supply also rising by 32% to an average of 1.8 months.
Ann-Marie Lurie, Chief Economist at CREB, noted that the increase in supply is a positive development for the market. She stated, “While we are still dealing with supply challenges, especially for lower-priced homes, more options in both the new home and resale market have helped take some of the upward pressure off home prices this month.” Lurie also expressed optimism about the future, stating, “This is in line with our expectations for the second half of the year, and should inventories continue to rise, we should start to see more balanced conditions and stability in home prices.”
Despite the improvement in supply levels, the benchmark price for homes in Calgary remained steady at $606,700 in July, which is 8% higher than prices from a year ago. Overall, the city saw a 10% decline in home sales in the month, with the pullback driven by homes priced below $600,000.
When looking at market performance by home type, detached homes in Calgary experienced an 8% drop in sales in July. While higher-priced homes saw a 15% increase, lower price ranges faced a 50% decline due to limited availability. Inventories for detached homes rose to 1,950 units, pushing the months of supply to nearly two months and stabilizing prices. The unadjusted benchmark price for detached homes in July was $767,800, up 11% from the previous year.
Semi-detached homes remained attractive in the market due to their relative affordability. Although sales slightly slowed compared to last year, year-to-date sales increased by 6% to 1,518 units, supported by new listings. The sales-to-new listings ratio for semi-detached homes is 76%, with 1.5 months of supply. The unadjusted benchmark price for semi-detached homes in July was $687,900, nearly 12% higher than the previous year.
Row homes in Calgary saw a decrease in the sales-to-new listings ratio to 73% in July, leading to an increase in new listings and a pullback in sales. This raised the months of supply to 1.3 months, halting monthly price gains. The benchmark price for row homes in July was $464,200, up nearly 15% from the previous year, with the highest growth seen in the North East and East districts.
Overall, the real estate market in Calgary is showing signs of stabilization as supply levels improve and prices moderate. With more options available for buyers, the market is expected to move towards more balanced conditions in the coming months.