November 2024 Calgary Housing Market Update: Supply Rising and Shifting Price Trends
As we transition into winter, the Calgary housing market update is showing some expected seasonal shifts. Activity is slowing compared to the bustling fall months, but year-over-year demand remains strong. In November 2024, the city saw an uptick in sales for detached, semi-detached, and row homes, which offset a slowdown in apartment condominiums.
However, it’s the shift in supply that has made the biggest impact on the market.
Rising Inventory: Supply Struggles and Market Conditions
One of the most significant changes this month is the increase in housing supply. Inventory levels rose to 4,352 units in November, up from 3,000 units last year. This increase in listings marks a positive shift but still falls short of long-term trends. Despite the rise in new homes coming to market, the pressure on prices is not uniform across different price ranges.
When asked about the Calgary housing market update Ann-Marie Lurie, Chief Economist at CREB®, commented, “Rising new home construction has bolstered supply in rental, new home, and resale ownership markets. However, supply improvements vary significantly by location, price range, and property type.”
While months of supply have increased to over two months, a significant improvement over previous years, the market is still very much tilted in favor of sellers in some sectors. This means that buyers will still face competition in certain price points, especially in high-demand neighborhoods.
Detached Homes: A Split Market with Supply Above $600,000
The rise in supply has affected the detached home market, especially for properties priced above $600,000. These homes saw strong sales despite a dip in the lower price ranges, where limited supply kept competition fierce. With 85% of supply priced over $600,000, the upper-end market saw improvements in inventory, pushing months of supply above two months.
For those looking to buy in this segment, the benchmark price for detached homes in Calgary reached $750,100 in November, representing a 7% year-over-year increase. However, there’s a noticeable slow-down in price growth compared to earlier in the year, particularly in areas with a lot of newer homes.
Semi-Detached Homes: Steady Growth
With 173 sales recorded in November, the semi-detached market continues to show steady growth, up nearly 5% compared to last year. The increased inventory of semi-detached homes and new listings in this sector has created a better balance, with about two months of supply.
The benchmark price for semi-detached homes in Calgary rose to $675,100, nearly 8% higher than November 2023. While the pace of price growth has slowed, the market remains favorable for sellers, particularly for homes under $700,000.
Row Homes: Affordability and Demand
Row homes saw another strong month, with sales increasing compared to last year. These homes, which offer an affordable alternative for homebuyers, continue to be a popular choice in the market. Despite inventory improvements, the months of supply for row homes remained tight at nearly two months.
The benchmark price for row homes reached $454,200, reflecting a 7% increase compared to last year. On a year-to-date basis, prices for row homes have surged by nearly 15%, with higher prices in the City Centre area, where the price reached $620,000. Buyers in areas such as the North East and East Calgary found more affordable options, with prices staying below $400,000.
Apartment Condominiums: A Shift in Supply and Pricing
The apartment condominium market experienced a slowdown in sales compared to last year’s record-breaking numbers, but sales were still 47% above long-term trends. The total number of apartment-style units for sale in November was 1,482, which represents an increase from the spring and has helped relieve some pressure on home prices.
The benchmark price for apartments in Calgary was $337,800, reflecting a 9% year-over-year increase. However, this sector is seeing more supply in the $300,000 to $500,000 price range, providing more choices for buyers in that range. This shift has helped stabilize prices, although the market remains competitive.
Regional Market Insights
As always, the Calgary region varies, with different areas experiencing unique market conditions. Here’s a quick overview of the market in several Calgary communities:
Airdrie: Strong Sales and Balanced Supply
In Airdrie, the market is showing a return to more balanced conditions. The supply of homes has risen to 344 units, with detached and row-style homes making up 84% of the listings. The benchmark price for a residential property in Airdrie reached $543,300, a 4% increase from last year. Apartment-style properties saw the most significant price gains, rising nearly 16% from 2023.
Cochrane: Record Listings and Growing Demand
Cochrane has also seen a strong market in November, with new listings reaching a record high. This growth in supply has been met with a surge in sales, particularly for detached homes. The benchmark price for a property in Cochrane rose to $568,600, an increase of 4% from last year. The most significant price gains were seen in apartment-style homes.
Okotoks: A Tight Market with Price Gains
Okotoks continues to struggle with supply, with only 47 new listings this month, leading to very low months of supply. Despite this, there were 52 sales in November, keeping the market active. The benchmark price in Okotoks reached $624,000, 6% higher than last year, with the detached market seeing the most substantial price growth, pushing prices to $707,300.
Conclusion: A More Balanced Calgary Market
The Calgary housing market update in November 2024 is showing signs of balance, with improving supply levels and tempered price growth. While some sectors, particularly homes priced under $600,000, still favor sellers, other market segments, especially row homes and apartments, are offering more affordable options to Calgary homebuyers.
For Calgary homebuyers, there are great opportunities in both detached homes and row homes, especially in the under $600,000 range. If you’re a Calgary seller, now might be the ideal time to capitalize on current market conditions before the winter slow-down fully sets in.
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