Calgary housing market shifts with Okotoks and High River holding steady

In Calgary, Housing sales activity continues to move away from the extreme sellers’ market conditions experienced throughout the spring. Easing sales, combined with gains in supply, pushed the months of supply above two months in August, a level not seen since the end of 2022.
“As expected, rising new home construction and gains in new listings are starting to support a better-supplied housing market,” said Ann-Marie Lurie, Chief Economist at CREB®. “This trend is expected to continue throughout the remainder of the year, but it’s important to note that supply levels remain low, especially for lower-priced properties. It will take time for supply levels to return to those that support more balanced conditions.”
Inventory levels in August reached 4,487 units, 37 per cent higher than last August but nearly 25 per cent lower than long-term trends for the month. Higher-priced properties mostly drove the supply gains, as the most affordable homes in each property type continued to report supply declines.

Both Okotoks and High River held steady for sales and inventory but we are starting to see a shift happening. New construction projects are hitting the market in full swing. Sellers of pre-owned homes will have to be more patient in selling and tame expectations on getting a quick sale with multiple offers (unless the property is priced very aggressive). Sellers and real estate agents will need to be careful not to overprice listings as we head into the fall and winter months.

Buying and selling in the same market is all relative. First time home buyers or move up buyers are the ones that will benefit most from the shifting market conditions with some possible downward pressure on price this fall.

Resale Home Inventory Climbs - Market Starts to Become Somewhat Balanced

There has been quite the run on real estate prices in our region the past few years. For the first time in a while, inventory levels are climbing which should create a balanced market very soon if this trend continues. New construction is starting to come online with some buyers now listing their homes for sale in preparation to move into new digs and this trend will only continue over the next 8-10 months. Calgary is up 53% YTD in new housing starts with June being a whopping 60% over June 2023. As mentioned in previous market updates, until new construction caught up with overall demand, we would not see any relief in house price escalation. Now, that is changing. All housing sectors look like prices peaked in June with July seeing either a flat growth in price or a slight decline. There are so many factors influencing real estate in our region and on a positive note we still have a lot of people looking to move here and interest rates look like they are going to continue to come down which will increase buy/sell movement and also help first time buyers enter into the housing market. Cautionary signs to consider are such things as a sell off and decline in the stock markets, Berkshire Hathaway selling off assets and squirrelling away $277,000,000,000 (yes, that’s how many zero’s are in $277 billion) in cash to get ready for what? Also, we have an election this fall south of the border which, like any election, creates anguish amongst the general public. BUT, as I have always, and will always say, if you are buying and selling in the same market, it is all relative. As the fall market approaches, sellers should temper expectations and not expect to sell in a day unless their home is in an extremely desirable location and also priced fair/aggressive. Buyers, you are starting to see more choice for the first time in months. However, don’t dilly dally if you find the one you want, as multiple offers were still a thing in JULY with 31% of detached homes in Calgary selling over list price and 36% of homes in Okotoks selling over list price.

Your new home awaits.