Inventory growth tempers price hikes as sales activity holds steady year over year
Calgary’s real estate sales activity in November kept pace with last year’s levels as supply began to catch up with steady demand, according to the Calgary Real Estate Board (CREB).
November recorded 1,797 home sales, matching the previous year’s figures and sitting 20% above long-term trends. Detached, semi-detached, and row home sales grew year over year, compensating for a drop in apartment condominium transactions.
Rising supply contributed to moderating price growth. The benchmark residential price reached $587,900, up 3.5% year over year, with seasonal adjustments keeping prices stable over the past four months.
“Calgary's housing market is following typical seasonal trends, with activity slowing compared to the fall,” the board said. “However, year-over-year demand remains relatively strong.”
The city’s inventory climbed to 4,352 units in November, a marked increase from 3,000 units during the same period last year. This shift pushed the months of supply past two, a significant move away from the tight conditions seen in recent years. Despite these gains, inventory remains below long-term averages, particularly in lower price ranges.
Read next: Should the stress test be scrapped on all mortgage renewal switches?
Detached homes saw the largest share of sales activity, driven by demand for properties above $600,000. Semi-detached and row homes also performed well, with row homes gaining popularity due to their affordability compared to other housing options. Apartment condominiums experienced a slight slowdown, but sales still remained well above historical norms.
The benchmark price reached $587,900 in November, up 3.5% from a year ago. Prices for detached homes rose 7% to $750,100, while semi-detached properties saw an 8% increase to $675,100. Row homes posted a 7% gain, with an average benchmark price of $454,200. Apartment condominiums experienced a 9% price hike, bringing the benchmark to $337,800.
“Housing supply has been a challenge over the past several years due to the sudden rise in population,” CREB chief economist Ann-Marie Lurie said in the report. “Rising new home construction has bolstered supply in rental, new home and resales ownership markets. However, supply improvements vary significantly by location, price range, and property type.”
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
