A Record-Breaking August

The Calgary housing market has been experiencing a significant surge, with August sales reaching new heights. The unadjusted benchmark price in August reached an impressive $696,700, marking a nearly 1% increase from the previous month and over 10% higher than the previous year. This growth is particularly noticeable in homes priced over $700,000, indicating a robust demand in the higher price ranges.

Despite the increase in sales, the market has been grappling with a limited supply, especially in the lower price ranges. This has hindered stronger sales of detached homes, a sector that has been in high demand. The inventory levels in August were 35% below last year’s levels, hitting a record low for the month. This low inventory situation remains unchanged, despite the addition of 236 new listings and 197 sales.

The most significant price gains were observed in the North East and East districts, the city’s most affordable regions. The East district, in particular, saw a staggering 29% increase in prices. This trend is a testament to the strong sales activity in these districts, with the sales-to-new-listings ratio remaining high at 94%.

The apartment condominium sector has also seen a surge in demand, driven by tight rental markets and relative affordability. The unadjusted benchmark price for this sector reached $309,100 in August, marking a monthly gain of over 1% and a year-over-year gain of over 13%.

The semi-detached market also experienced growth, with the unadjusted benchmark price reaching $623,200 in August. This represents a monthly gain of 1% and is 10% higher than last year.

Calgary and the Bow river

Chief Economist Ann-Marie Lurie highlighted the challenge of supply availability, especially in the detached market. “Inventory levels hit record lows in August, and while new listings are higher than last year, conditions continue to favour the seller, driving further price gains,” she said.

Calgary’s housing market has been on an upward trajectory, with record-breaking sales and price gains. However, the challenge of limited supply, particularly in the detached market, remains a significant hurdle. As the market continues to favour sellers, it will be interesting to see how this dynamic evolves in the coming months.

Adam Terlecki, Calgary REALTOR

Real Estate Professionals Inc.

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