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Housing supply continues to increase in the city of Calgary, with nearly 7,000 units for sale in July across detached, semi-detached, townhomes and apartments. Inventories haven't been this high since before the pandemic, and are now higher than long-term trends. This is nuanced however, with the largest gains of inventory acutely impacting new communities.
The added supply has weighed on home prices in the city with the benchmark residential price trending downwards over the last couple months (now ~4% below last year's peak) across all property types.
That said, price declines are not impacting all property types across all locations in the city. Even where there have been recent price declines, this hasn't erased gains made over the last several years, effectively setting a 'new floor' for home prices in Calgary.
As I've mentioned previously, a healthy market will see fluctuations in supply and demand, and a pullback in pricing is positive for sustainable growth over long periods of time.
Key persistent issues dampening demand are:
• Continued tariff uncertainty (clouding business decisions, and ultimately employment growth)
• Stubborn lending rates (BoC holding policy rates flat)
• Competition from the new home market
Tracking listings and sales over the last 10 years, we're seeing now inventories ~25% above the 5-year average and sales ~10% below the 5-year average.
If you're looking to move, there's no time like the present to start the buying process. Especially if you're looking for a condo or townhome, as a buyer you have much more to select from to find the perfect home. Detached / semi-detached, a little more nuanced depending on the location but more options out there as well.
If you're looking to sell, give us a call to chat. There's always a strategy no matter the market, but the key here is there are market tops and market troughs that will dictate the strategy and reasonable expectations to set during times of uncertainty.
