🏡📉 Calgary home sales fell 10% in July 2024, but prices keep rising! Discover the latest trends and insights in the real estate market. 📊🔍 #Calgary #Alberta
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Calgary Home Sales Decline as Prices Continue to Rise: A July 2024 Overview
In July 2024, Calgary’s real estate market experienced a notable shift. The latest data from the Calgary Real Estate Board (CREB) reveals a 10% decrease in home sales year-over-year. Despite this drop, home prices have surged, making the market more complex than ever. Let's delve into the key takeaways and implications of these trends.
Sales and Pricing Trends
According to CREB, the number of homes sold in Calgary fell to 2,380 in July, marking a significant 10% decrease compared to the previous year. The benchmark price for all home types remained stable at $606,700, a figure consistent with the previous month. However, this represents an almost 8% increase from July 2023.
Price Dynamics
The steady benchmark price amid declining sales highlights a critical trend: while fewer homes are being sold, prices continue to climb. This paradox can be attributed to various factors, including supply constraints and shifts in market dynamics.
Supply and Inventory Insights
One of the central issues affecting the Calgary market is the supply of lower-priced homes. CREB’s chief economist, Ann-Marie Lurie, notes that the market struggles with a shortage of affordable housing options. However, an increase in overall inventory has somewhat tempered the pace of price growth.
Inventory Levels
In July, inventory levels surpassed 4,000 units for the first time in nearly two years. Despite this increase, inventory remains 33% below the typical levels seen in July. The rise in inventory is significant, particularly in higher-priced segments, which has shifted the market away from the extreme sellers' market conditions observed in the spring.
Market Segment Analysis
Detached Homes
For homes priced above $600,000, the highest supply growth was recorded. This segment’s increased availability has contributed to the cooling of the previously heated sellers’ market. Conversely, the availability of detached homes priced under $600,000 dropped by 50%, leading to an 8% decline in sales within this price range.
Semi-Detached and Row Housing
Semi-detached homes have remained relatively affordable, with notable price increases in the east and northeast areas of Calgary. The row housing market, although still a seller’s market, has seen price hikes moderated by rising supply. Prices in this segment are 15% higher in 2024 compared to 2023.
Condo Market
The condominium market has faced challenges due to limited supply, particularly for apartment-style homes priced under $300,000. This shortage has constrained sales activity in the condo sector.
Regional Highlights
Airdrie and Cochrane
Airdrie saw a record number of new listings in July, with 287 units added. However, sales slowed, resulting in increased inventory. Cochrane, on the other hand, experienced an 8% increase in year-to-date sales compared to 2023.
Okotoks
In Okotoks, a slowdown in sales has led to a boost in inventory levels, although these remain low compared to typical July figures.
Looking Ahead
The current trends suggest a complex market landscape. While sales are down and inventory is up, prices remain elevated due to supply constraints and demand dynamics. As we move through the second half of the year, the market's trajectory will depend on ongoing inventory changes and shifts in buyer preferences.
Key Takeaways
- Price Resilience: Despite a drop in sales, home prices continue to rise, driven by limited supply and higher demand in certain segments.
- Inventory Trends: Increased inventory, particularly in higher-priced segments, is helping to stabilize the market but has not yet alleviated the pressure on lower-priced homes.
- Segment Variations: Different market segments are experiencing varied impacts, with semi-detached and row housing seeing price increases, while the condo market struggles with supply issues.
As Calgary’s real estate market evolves, both buyers and sellers need to stay informed and adaptable. The balance between supply and demand will be crucial in shaping the market’s future.