The Calgary real estate market is showing signs of cooling, with inventory levels rising and sales moderating. Although conditions are still tight in some segments, especially for more affordable homes, supply is increasing. The city’s housing activity continues to reflect easing demand alongside rising listings, with sales of lower-priced homes slowing down while higher-end properties see more movement.
Total Residential Market
Sales
According to the Calgary Real Estate Board, Calgary recorded 2,186 residential sales in August 2024, a 20% drop compared to the record-high sales levels of August 2023. Despite this decrease, sales are still 17% higher than long-term averages, indicating that demand remains steady. Year-to-date (YTD), Calgary has maintained its solid performance, particularly in higher-end segments.
Listings
August saw 4,487 active listings, a 37% increase from last year, marking the highest inventory levels since 2022. Despite this growth, listings are still 25% lower than historical averages for the month, especially in lower-priced property categories. New listings in August 2024 also rose across the board, improving supply but not enough to completely balance the market.
Prices
The benchmark price for residential properties in Calgary was $601,800 in August, 6% higher year-over-year. Price growth has slowed in recent months, with a slight dip compared to July 2024, but remains robust in higher-priced segments.
Market by Housing Type
Detached Homes
Detached homes in Calgary saw 2,011 active listings in August, with 85% of them priced over $600,000. Sales fell by 14% year-over-year, driven by declining availability of affordable detached homes. However, the benchmark price for detached homes in August remained strong at $762,600, up 9% from August 2023. Supply improvements have pushed the months of supply to nearly two months.
Semi-Detached Homes
In August, the market for semi-detached homes saw 297 new listings and 172 sales, resulting in a sales-to-new-listings ratio of 58%. The benchmark price for semi-detached homes was $681,200, up 10% from last year but slightly lower than July 2024 as new supply tempered price pressures.
Row Homes
The row home sector saw 660 active listings in August, a 75% year-over-year increase that has eased some of the extreme supply shortages from last year. The benchmark price for row homes in August was $461,700, reflecting a 12% annual increase, but prices dipped slightly compared to July 2024. Price movements were uneven across districts, with the City Centre and North West seeing the biggest adjustments.
Apartment Condominiums
The apartment condo market saw a rise in new listings in August, with 1,001 units added, pushing the months of supply to nearly two and a half months. Inventory levels reached 1,476 units, more aligned with long-term trends. The benchmark price for apartment condos was $346,500, nearly 16% higher than last year but relatively flat compared to July.
Rental Market Overview
In Calgary, the rental market saw a decline in average rents for both one- and two-bedroom units. The average rent for a one-bedroom apartment in September 2024 was $1,708, down 2.5% month-over-month and 1.1% year-over-year. Two-bedroom units experienced a 2.9% decrease month-over-month, with the average rent sitting at $2,094, down 2.6% year-over-year. Despite these declines, Calgary’s rental market remains competitive, and prices are still higher than in many other cities, reflecting the ongoing demand for rental housing amidst a slow recovery in the lower-priced property market.
Employment Trends
Calgary’s unemployment rate held steady at 5.6% in August 2024, maintaining relatively strong employment numbers despite fluctuations in the national economy. Job growth in both full-time and part-time positions has remained consistent. Calgary’s rate remains lower than Canada’s unemployment rate overall of 6.6%.
Consumer Confidence
Consumer confidence in the prairies improved in August 2024, according to the Conference Board of Canada. While most respondents expected job stability over the next six months, the number expressing uncertainty increased slightly. Similarly, optimism about household finances remained high but dipped compared to July. Sentiment towards making major purchases, such as homes or cars, has improved from historically low levels, with fewer people considering it a bad time to buy and more feeling positive about big purchases.
