According to the Calgary Real Estate Board (CREB), the average price of homes in Calgary sat at $460,100 at the close of July—a figure only a little higher than June but still 10% higher than July 2020. Detached homes have seen the most significant growth, sitting at 11% higher year-on-year.
The growth in sales figures has slowed somewhat in the last few months, as has the number of new properties listed. Read on for a full analysis of real estate market trends in Calgary.
Inventory Gains Bring Balance Back to the Market
Overall inventory supply remains a little higher in July 2021 than last year, although the variation in inventory types is significant. The month finished up with 6,678 properties listed, bringing the projected supply period to just below three months. The disparity between property types is considerable. The supply time frame for detached properties is currently around two months, while the apartment and condominium listings are almost six month’s worth of inventory.
Nevertheless, the climb towards healthy inventory supplies undoubtedly brings some balance back to the market, with buyers regaining some long-overdue leverage in negotiations.
Trends by Property Type
For July 2021, the rate of inventory growth and the number of sales of detached properties in Calgary have both slightly slowed when compared to June. Still, they are still up year-on-year, and sales are still reaching record highs.
Meanwhile, only a little over 1,800 listings entered the market for the month, causing the ratio of sales-to-new-listings to stay at an elevated 78%. This dynamic also caused the supply time-frame projection to increase to over two months, which, although still relatively low, represents a significant improvement compared to previous months in 2021.
Prices have continued to track upwards, with benchmark prices just shy of $540,000 representing a year-on-year increase of 11%. Areas of relative affordability outside the metro center are also growing in popularity, with Chestermere properties experiencing a 22% growth in the average price of detached homes year-on-year.
Supply for semi-detached homes sat a little higher at the end of July at almost three months, with 577 units listed and 209 sales for the month. Average prices for the property type are still rising, too, but now at a slower pace - the July average for a semi-detached home was $428,400.
With supply sitting at around six months, average prices of Calgary condos have eased across most districts month-on-month, although some gains occurred in southern districts. Amidst a relatively solid regional sellers’ market, condo properties are experiencing much more balanced conditions.
Another Record Month for Airdrie
Sales of properties in Airdrie are continuing to reach record highs - at 1,150 sold between January and July of 2021, they are already close to surpassing their annual 2014 record of 1,695 with five months left to go.This red-hot market, driven mainly by remote-working trends and relative affordability, is currently a strong sellers’ market, with high sales and low inventory at little over a month’s supply. Benchmark prices for the detached property sector closed in at $435,300 for July 2021 - a 15% increase year-on-year and almost 1% higher month-on-month.
Okotoks' July Inventory Reaches Lowest Point in Over a Decade
July sales were up year-on-year for homes in Okotoks, but they have been declining since the start of 2021, and this is somewhat due to such low figures for new listings. Just 73 new properties entered the market in July. With less than two month’s worth of inventory currently listed, available properties in Okotoks for July were the lowest on record since 2006.
In July, the average price of detached Okotoks homes sat at $511,800 - a figure 13% higher year on year, with such growths the result of low inventory squeezing the market conditions.
Cochrane Sales Remain Strong
Sales of properties in Cochrane have continued to hold firm. While relatively low supply at under two month’s worth is maintaining sellers’ market conditions, there was an increase in inventory for July.
Prices in Cochrane are still rising due to tight market conditions, with the greatest appreciations seen in detached properties, where average prices surpassed $500,000 for July - a 2% climb from June and 17% higher than the previous July.