Calgary’s January sales surge amid tight inventory, driving prices higher: CREB

The Calgary Real Estate Board (CREB) reports a notable uptick in Calgary’s January home sales, which reached 1,650 units and marked a significant increase compared to both last year’s figures and long-term trends. This surge was driven by limited supply and strong demand, which continued to push prices higher

New listings totalled 2,137 units for the month, the bulk of which was observed in homes priced above $700,000. However, despite the increase in new listings relative to sales, the city’s inventory situation remains dire. With only 2,150 units of inventory, levels are hovering near record lows set in January 2006, representing a 49 per cent drop from the long-term average for the month.

High sales hinder supply growth, keeping conditions tight

“Supply challenges have been a persistent problem since last year. This month’s gain in new listings has helped provide options to potential purchasers, supporting sales growth. However, the growth in sales prevented any significant adjustments in supply, keeping conditions tight and supporting further price growth,” Ann-Marie Lurie, CREB’s chief economist states.

The months of supply in January dwindled to 1.3, declining from both the previous month’s and last year’s levels. This ongoing tightness in the market continued to exert upward pressure on home prices, with the unadjusted benchmark price reaching $572,300 for the month, marking a 10 per cent increase compared to last January.

Detached homes: Sales and prices soar

In the detached sector, an increase in new listings fueled stronger sales. But with a sales-to-new-listings ratio of 77 per cent, inventory levels remained low, particularly in the over $700,000 market segment.

Consequently, there was no improvement in the months of supply, which dropped to 1.4 months, driving further price growth. In January, the unadjusted detached price surged to $702,200, nearly 1 per cent higher than the previous month and 13 per cent higher than last year.

Semi-detached and row houses: Market dynamics shift

In the semi-detached segment, although new listings and sales rose, the sales-to-new listings ratio fell to 59 per cent (the lowest since 2020), leading to slight improvements in inventories. The unadjusted benchmark price for January was $625,000, slightly lower than the previous month but over 11 per cent higher than last January.

Similarly, row houses experienced a rise in new listings and sales, contributing to a reduction in inventory levels and a surge in prices. The unadjusted benchmark price for January reached $426,400, up nearly 20 per cent from last year.

Apartment condominiums: Sales surge amid limited supply

Apartment-style properties witnessed a significant increase in sales activity, rising by 54 per cent year-over-year to 488 units in January. However, despite the growth in new listings, inventories remained 40 per cent below long-term trends, exerting upward pressure on prices. The unadjusted benchmark price for January soared to $324,000, up 19 per cent from last year.