April Housing Market Update

Price growth persists in Calgary as seller's market prevails

May 1, 2024

Sales Growth and Market Trends | Despite a slight easing in the pace of growth compared to earlier in the year, sales in April increased by seven per cent compared to last year. This growth is significant as it remains 37 per cent higher than long-term trends for the month. The data also indicates that much of the growth in sales is focused on relatively more affordable, higher-density products.

New Listings and Inventory Dynamics | April saw an 11 per cent gain in new listings compared to last year, but this increase was only three per cent higher than long-term trends. The rise in new listings helped prevent further deterioration of the inventory situation, but inventory levels are still 16 per cent below last year and significantly lower than traditional levels for April. Notably, the decline in supply has been driven by lower-priced homes, while there's been supply growth in higher-priced properties.

Market Conditions and Seller Advantage | With a sales-to-new-listings ratio of 83 per cent and a months of supply of less than one month, market conditions strongly favour sellers. This indicates high demand relative to supply, which is driving further price gains in the market.

Price Trends and Affordability Impact | The unadjusted total residential benchmark price reached $603,700 in April, marking a one per cent gain over the previous month and nearly a 10 per cent increase compared to last year. Price gains were observed across all property types and districts, with the most robust growth occurring in the more affordable districts of the city. This suggests that persistently high-interest rates are influencing demand toward more affordable products in the market, while listing growth is focused on higher-priced properties.

Housing Market Facts

Detached | Detached home sales rose by one per cent in April compared to last year. Sales gains in the higher price ranges offset the steep decline for homes priced below $600,000, which is related to the lack of listings in the lower price ranges. While detached new listings did report a year-over-year gain of 10 per cent, detached homes priced below $600,000 saw new listings decline by 34 per cent.

Adjustments in sales and inventory levels caused the months of supply to fall further this month. The less than one-month supply reflects a market favouring the seller, driving further price growth. In April, the unadjusted benchmark price reached $749,000, over one per cent higher than last month and 13 per cent higher than April 2023 levels. Year-over-year gains were the highest in the city's most affordable districts.

Semi-Detached | Sales activity continued to rise in April, contributing to the nearly 18 per cent year-to-date growth in sales. The growth in sales was partly due to gains in new listings. However, the growth in new listings did little to change the low inventory situation, as the months of supply remained below one month for the second month in a row.

The persistently tight market conditions have caused further price gains. In April, the unadjusted benchmark price reached $668,400, nearly two per cent higher than last month and 13 per cent higher than levels reported last year. Year-over-year price gains ranged from a high of 23 per cent in the East district to a low of 10 per cent in the City Centre.

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