In a promising start to the year, Calgary's real estate market experienced a substantial surge in home sales during January, according to the latest report from the Calgary Real Estate Board (CREB). The city witnessed a noteworthy 37.7% year-over-year increase, with a total of 1,650 homes changing hands. This positive trend was accompanied by a 15.4% rise in newly listed homes, suggesting an active and dynamic market.
One of the key indicators of the market's health, the unadjusted residential benchmark price, reached $572,300 in January. This figure marked a significant 10% jump compared to the same period in 2023. The increase in benchmark prices reflects the overall robustness of the Calgary real estate market, indicating sustained demand for homes in the region.
Despite the surge in new listings, Calgary continues to grapple with a persistently low inventory situation. As of January, there were only 2,150 units on the market, nearing the record low set in 2006 and trailing almost 49% below the long-term average for the month. This shortage in available homes has been a consistent challenge for prospective buyers, contributing to the overall competitive and tight conditions in the market.
Ann-Marie Lurie, Chief Economist at CREB, highlighted that while the rise in new listings has offered some relief to potential buyers, the market conditions remained relatively tight. This tightness has resulted in further price growth, emphasizing the ongoing imbalance between supply and demand in the Calgary housing market.
Breaking down the sales data by property type, apartment-style properties emerged as the top performers during January. A total of 488 units changed hands in this category, representing an impressive 54% increase from January 2023. This surge in apartment-style property sales suggests a shifting trend in buyer preferences, possibly influenced by factors such as lifestyle changes and the appeal of urban living.
Moreover, the report indicates a rise in new listings across all detached homes priced above $500,000. The most substantial gains were observed in the category priced over $700,000, signifying a potential market shift towards higher-end properties. This shift could be influenced by various factors, including economic stability, changing buyer demographics, and evolving lifestyle preferences.
As the Calgary real estate market navigates these dynamics, it remains a crucial time for both buyers and sellers. The increased options resulting from a rise in new listings provide potential homebuyers with more choices. However, the persistent low inventory and tight market conditions underscore the importance of informed decision-making in this competitive landscape. The coming months will be closely watched to see how these trends evolve and whether the market continues its positive momentum.
