Calgary Real Estate Market Overview – October 2024

Calgary Real Estate Market Overview – October 2024

Average Home Prices Calgary's home prices have been on the rise for the past four years and are now starting to stabilize, holding steady near their peak. In October 2024, the average home price in Calgary was $620,946, up 14% compared to October 2023, but 2.2% lower than the previous month.

• Detached Homes: Average price was $802,152, showing a 10% increase year-over-year, but a slight 2.2% decrease from the previous month.
• Semi-Detached Homes: Average price hit $702,226, reflecting 14% growth from last year and a 4.4% monthly increase.
• Townhouses: The average price was $454,083, up 6.3% from October 2023, but 2.9% lower than in September 2024.
• Apartments: The average price reached $351,998, a 9.4% rise from last year and a 1.2% increase from the previous month.

It's important to note that average prices can sometimes mask the full extent of price changes because when buyers face affordability challenges due to higher home prices or rising mortgage rates, they tend to shift toward more affordable property types. Luxury homes also play a role in skewing average prices upward, as fluctuations in their sales volume can cause notable shifts. In terms of property preferences, over the past few years, there’s been a shift in the market toward condos and townhouses, while demand for detached homes has decreased.

Sales and Benchmark Prices The benchmark price for homes in Calgary rose 4.5% compared to last year, now sitting at $592,500. However, it dropped 0.7% compared to last month.

• In October 2024, 2,174 homes were sold, which is slightly up by 0.1% compared to October 2023.
• There were 3,264 new listings, which is a 22% increase year-over-year (YoY).

With a 67% sales-to-new-listings ratio (SNLR), Calgary is currently in a seller’s market again, after a brief period of balanced conditions. The market has also seen a substantial increase in inventory, which is up 55% from last year, with 4,997 units available for sale. This brings the current inventory to 2.3 months of sales, up slightly from the previous months.

Property-Specific Details:

• Detached Homes: The benchmark price for a detached home in Calgary was $753,900, reflecting an 8.1% increase YoY, though it dropped slightly by 0.4% from last month. Detached home sales decreased 10% from last year, with 1,071 homes sold.
• Semi-Detached Homes: The benchmark price grew by 8% YoY to $677,000, with a 0.2% drop from August. Sales of semi-detached homes increased 6.2% YoY to 190 units sold.
• Townhouses: Benchmark prices for townhouses rose 8.1% from last year but fell 0.6% month-over-month to $456,600. Row house sales dropped 6.1% YoY, with 353 units sold.
• Apartments: The benchmark price for apartments increased by 11.4% YoY to $341,700 but dropped 1% from September. Apartment sales decreased by 13% YoY, with 560 units sold.

Median Prices Looking at median prices, which offer a different view of market trends:

• The median home price in Calgary rose 16% YoY to $575,000, with a 1.8% increase from September.
• Detached homes had a median price of $699,800, reflecting a 7.7% annual increase.
• Semi-detached homes reached a median of $623,875, up 16% compared to last year.
• Row houses had a median price of $437,500 (+4.2% YoY), while apartments reached a median of $315,000, marking a 7.7% increase YoY.

Market Context Compared to other major cities like Toronto and Vancouver, Calgary remains much more affordable. However, it’s slightly less affordable than Montreal. Over the past four years, Calgary home prices have jumped 41%, which has reduced affordability for many buyers and renters. While this may slow economic growth and productivity in the region, there are plans in the works to relax zoning restrictions and allow for more housing development, which could help maintain Calgary’s appeal for those looking to live and work here.

Supply and Demand Calgary’s population has been growing steadily, with projections indicating an increase of around 55,500 people annually. This growth requires roughly 20,600 new homes each year, but new construction has been averaging only 15,500 homes per year. This gap between demand and supply is contributing to the pressure on home prices.

Macro-Economic Trends Looking at long-term trends, Calgary's real estate market has seen a 33% increase in home prices over the last decade, outpacing inflation (28% rise in the Consumer Price Index). In contrast, home prices in cities like Toronto and Montreal have skyrocketed by 100% and 97%, respectively, over the same period. Despite the rise, Calgary’s housing market has remained relatively affordable, and with moderate growth of 2.9% per year over the past decade, it appears that there are fewer risks of a sudden downturn.

With its strong economy, high incomes, and abundance of natural resources, Calgary remains an attractive destination for both Canadians and newcomers from around the world.