Thanks to a surge in demand for condominiums, August broke sales records with a total of 2,729 sales. However, despite these recent highs, the year-to-date sales figures are still down by 15% compared to last year.
Although there were more new listings compared to the same time last year, the sales-to-new-listings ratio remained high at 87%, meaning there was no significant change in the low inventory situation. In August, inventory levels dropped to 3,254 units, setting a record low for the month and falling far below the typical 6,000 units available. With low inventory and strong sales this month, the supply of homes remained scarce, at just over one month.
According to Ann-Marie Lurie, the Chief Economist at CREB®, "Higher lending rates have caused many buyers to either delay their purchase decisions or opt for more affordable properties. The challenge has been the lack of available supply, particularly in the detached housing market. Inventory levels hit historic lows in August, and while new listings are higher than last year, the market conditions still favor sellers, leading to further price increases."
In August, the unadjusted benchmark price reached $570,700, marking the eighth consecutive monthly increase. Prices have been rising for all types of properties, with row-style properties seeing the largest gains.
This month, there were very few homes available for sale, especially those priced under $700,000. While there were more homes listed for sale compared to last year, most of them were priced above $700,000. Although home sales in August were better than last year, there weren't many affordable homes on the market, which likely slowed down sales.
Because there weren't many homes to buy, prices kept going up this month. In August, the average price of a home was $696,700, which is about 1% higher than last month and more than 10% higher than last year. The biggest price increases were in the cheapest parts of the city, like the North East and East districts.
Even though there were 236 new homes listed for sale and 197 homes sold, it didn't change the fact that there weren't many homes available to buy. The number of homes for sale was about the same as last month, but it's still 35% lower than last year, and that's the lowest it's been for this time of year. Because there are more people who want to buy homes than there are homes for sale, it's a good time to be a seller.
Because there aren't many homes for sale, prices are going up. In August, the average price for a semi-detached home was $623,200, which is 1% higher than last month and 10% higher than last year. Prices went up in all parts of Calgary, but the biggest increases were in the cheapest areas, like the North East and East districts.
Even though more people listed their homes for sale, there were so many buyers that the number of homes for sale stayed low, and it's been like that for five months in a row. Because there are more buyers than sellers, prices keep going up. In August, the average price for a row-style home was $413,200, which is more than 1% higher than last month and almost 16% higher than last year. Prices went up in all parts of Calgary, from 12% in the North West to 29% in the East district.
In August, more people bought apartments compared to last month and last year. So far this year, there have been 5,582 apartment sales, which is 22% more than last year and the highest it's ever been. A lot of people are buying apartments because they're affordable and there aren't many places for rent. But because there aren't many apartments for sale, prices keep going up.
In August, the average price for an apartment was $309,100, which is more than 1% higher than last month and more than 13% higher than last year. The only part of the city where prices didn't go up was the City Centre, but that's because there are more apartments for sale there compared to other parts of the city.