The City of Calgary has witnessed a robust start to the year 2024, with January showcasing strong sales driven by a significant boost in new listings. The real estate landscape in the city is marked by a surge in demand, particularly in the higher-priced segments, influencing prices and perpetuating a tight market condition.
Sales and New Listings
In January 2024, the city recorded 1,650 unit sales, marking a substantial increase compared to the previous year and long-term trends. This growth was made possible by a surge in new listings, totaling 2,137 units for the month. Notably, new listings experienced the most substantial gain htxs in homes priced above $700,000.
Despite the rise in new listings, the low inventory situation persisted, with 2,150 units in inventory, nearly 49% below the long-term average for January. While new listings provided options to potential purchasers, the growth in sales did little to alleviate supply challenges, keeping market conditions tight and supporting further price growth.
- Detached Homes:
- New listings for detached homes rose, but with a sales-to-new-listings ratio of 77%, there was minimal change in the low inventory situation.
- The exceptionally tight market conditions contributed to a nearly 13% year-over-year increase in the unadjusted benchmark price, reaching $702,200 in January.
- Semi-Detached:
- The sales-to-new-listings ratio fell to 59%, the lowest since 2020, improving inventories but remaining below long-term trends.
- The unadjusted benchmark price in January was $625,000, over 11% higher than the same month last year.
- Row Houses:
- New listings and sales increased, maintaining a high sales-to-new-listings ratio of 92%, leading to further reductions in inventory levels.
- The unadjusted benchmark price for row houses reached $426,400, nearly 20% higher than January 2023.
- Apartment Condominiums:
- Apartment-style properties saw a significant gain in sales activity, rising 54% year-over-year, driven by new listings.
- Despite the increase in listings, inventories remained 40% below long-term trends, contributing to a 19% year-over-year increase in the unadjusted benchmark price, reaching $324,000.
District Total Residential Benchmark Price: January 2024
Let’s take a closer look at how much homes cost in different parts of Calgary in January 2024. The following information breaks down the prices in each area, helping us understand what’s going on in the housing market.
- North: In January 2024, the North district of Calgary reported a benchmark price of $553,000, representing a robust 11.8% year-over-year increase.
- North West: The North West district exhibited a benchmark price of $619,100 in January 2024, reflecting a notable 11.6% year-over-year growth.
- North East: With a benchmark price of $495,800, the North East district experienced a substantial 17.2% year-over-year increase in January 2024.
- City Centre West: January 2024 saw a benchmark price of $686,600 in the City Centre West district, demonstrating a 10.5% year-over-year rise.
- City Centre: The City Centre, encompassing various districts, reported an overall benchmark price of $590,600 in January 2024.
- East: In the East district, the benchmark price surged to $420,900 in January 2024, marking an impressive 25.6% year-over-year increase.
- South: With a benchmark price of $553,100, the South district experienced a steady 9.3% year-over-year growth in January 2024.
- South East: January 2024 revealed a benchmark price of $558,100 in the South East district, showcasing a commendable 9.2% year-over-year increase.
Rental Market by Property Type
Rental prices in Calgary have exhibited fluctuations, reflecting the dynamic nature of the local rental market. Below is a detailed analysis of rental trends in Calgary for January 2024, shedding light on the factors contributing to the observed variations in rental prices across different property types.
- Calgary Condo Units: The rental market for condo units in Calgary has undergone fluctuations, exemplified by contrasting trends among different unit types. Studio units witnessed a notable decrease of 3.3%, indicating a potential shift in demand dynamics or increased availability in this category. In contrast, 1 and 2-bedroom units experienced moderate increases, suggesting sustained or growing demand for slightly larger living spaces, potentially influenced by lifestyle preferences or changes in the composition of renters.
- Calgary Townhouses: The rental market for townhouses in Calgary showcases varied trends among different unit sizes. 1-bedroom townhouse units observed a decrease of 1.3%, possibly influenced by factors such as changes in demand for smaller spaces or increased availability. Conversely, 3-bedroom units experienced an increase of 2.9%, suggesting a potential growing demand for larger family-friendly spaces or limited supply in this category.
- Calgary Houses: Rental prices for houses in Calgary display a mix of increases and decreases, presenting a nuanced picture of the market. Studio units witnessed a significant rise, potentially driven by unique property offerings, desirable locations, or an increased demand for more compact living spaces. Conversely, 1 and 2-bedroom units experienced decreases of 5.1% and 7.1%, respectively, which may be linked to changes in demand or increased supply in these categories. The increase in rental prices for up to 2-bedroom units by 2.1% suggests a higher desirability or limited availability in this specific market segment. These fluctuations in rental prices underscore the dynamic nature of the Calgary rental market, influenced by various factors including economic conditions, changes in population demographics, and housing supply dynamics.
Regional Market Highlights
Airdrie:
In Airdrie’s real estate landscape, the average home price has surged to $522,000, marking a robust 9.8% year-over-year increase, indicative of a thriving market. Total residential sales have seen a substantial 25.0% year-over-year growth, driven by stronger performances in detached and row housing segments. However, this surge in sales was not uniform, as the semi-detached and apartment sectors experienced pullbacks. Despite a boost in new listings, the impact on inventory levels has been limited, remaining half of typical market levels.
The unadjusted benchmark price, holding steady over the last month, is nearly 10% higher than January 2023, with the most substantial price gains observed in the apartment-style homes, emphasizing their desirability. The months of supply at 1.29 highlight the persistent tightness in the market, while the 135 sales reflect a 1.5% year-over-year increase, reinforcing the sustained demand and competitive nature of Airdrie’s real estate market.
Chestermere:
The real estate landscape in Chestermere displayed remarkable vitality, with total residential sales experiencing a substantial increase when compared to the previous year. This surge in sales activity indicates a robust demand for residential properties in the region. Further underlining this positive trend, the benchmark price for total residential properties in Chestermere reached $668,300, reflecting an impressive year-over-year increase of 9.7%. The notable rise in both sales and benchmark prices positions Chestermere as a dynamic and sought-after market, appealing to buyers and showcasing the region’s overall real estate strength and desirability.
Are you planning to buy or sell in Calgary?
The real estate landscape in Calgary continues to present both challenges and opportunities for buyers and sellers alike. As we navigate these dynamic market conditions, Team Singh YYC remains dedicated to providing expert guidance and support. Whether you are looking to buy, sell, or invest in Calgary’s real estate market, Team Singh YYC is here to assist you in making informed decisions. Contact us today to explore your options and navigate the exciting opportunities in Calgary’s evolving real estate market.
