Calgary Real Estate Market: Insights and Trends for August 2024
The Calgary real estate market has been a topic of intense scrutiny, especially with recent developments including the Bank of Canada’s interest rate cut. This post will dive into the August 2024 market data, providing clarity on current trends, market dynamics, and future projections for both buyers and sellers.
Market Overview
In August 2024, Calgary’s real estate market exhibited mixed signals. The Bank of Canada’s decision to cut interest rates has had a notable impact, but it hasn’t universally translated into immediate market shifts. While national headlines suggest a cooling trend, the data from Calgary paints a more nuanced picture.
Sales Activity and Trends:
- Sales Decline: Home sales in Calgary experienced a significant drop of nearly 20% year-over-year in August 2023. Despite this decline, the current sales figures are more in line with a normal market, with 2,186 homes sold in August 2023. This is a considerable decrease from the exceptional highs of previous years but aligns with long-term averages, indicating a return to a more stable market condition.
- New Listings: There has been a 13% increase in new listings compared to the previous year. With 3,536 new listings in August 2023, the market is moving towards a healthier balance. This increase offers buyers more options and reduces the pressure to make hasty decisions, contributing to a more equitable market environment.
- Inventory Levels: Calgary’s inventory remains below the ideal range for a city of its size, with a total of 4,487 listings. Ideally, the market should have 7,000 to 8,000 listings to be considered fully balanced. While the current figures are still on the lower side, the increase in new listings suggests a positive trend towards normalization.
Price Trends:
- Benchmark Prices: The benchmark price for all property types in Calgary has risen to $601,800, marking a 6.33% increase year-over-year. This uptick in prices is partly driven by the strong performance in the luxury segment.
- Luxury Market: The luxury real estate sector in Calgary remains robust, with significant sales in the over $1 million price range. Properties over $2 million have seen substantial activity, reflecting continued interest in high-end homes despite overall market cooling.
Market Balance:
- Absorption Rate: The absorption rate, a key indicator of market balance, has decreased to 51.02%. While this is a reduction from the red-hot seller’s market conditions experienced earlier in the year, it still indicates a relatively active market. A balanced market typically has an absorption rate of 35% to 40%, suggesting that while the market is normalizing, it remains competitive.
- Price Range Distribution: The most active price range for detached homes remains between $600,000 and $700,000. This segment continues to see strong demand, though there is also noticeable activity in the luxury market, with a substantial number of sales over $1 million.
Looking Ahead
As we progress through 2024, Calgary’s real estate market is expected to continue its trend towards stabilization. The recent interest rate cut by the Bank of Canada is likely to have a supportive effect, potentially easing some of the financial pressure on buyers. However, the market is unlikely to return to the frenetic pace of previous years immediately.
For buyers and sellers, understanding these trends is crucial for making informed decisions. The return to a more balanced market offers opportunities for strategic buying and selling, with less urgency and more negotiation power.
For more detailed insights and the latest updates on Calgary’s real estate market, call Rob Vanovermeire & his team at (587) 847-0449