August 2024 Real Estate Market Report: Calgary and Surrounding Areas
Market Overview: The Calgary real estate market in August 2024 reflects a mix of trends that are crucial for both buyers and sellers to understand. Despite a slight cooling off from the frenetic activity of the previous year, the market remains competitive, particularly in specific property segments.
Current Trends:
- Sales Activity: Residential sales in Calgary totalled 2,937 units in July 2024, marking a 2.5% decrease compared to July 2023. Single detached home sales fell by 6.4%, while townhouse and row unit sales increased slightly by 0.8%, and apartment sales rose by 2.7% year-over-year.
- Prices: Home prices in Calgary have seen a significant rise, with the overall benchmark price climbing 10% year-over-year to $608,000. Detached homes averaged $742,000, semi-detached homes $560,000, row houses $585,000, and apartments $299,000.
- Inventory: Inventory levels remain critically low, at 40% below historical averages. New listings in July 2024 were down by 11.6% from the previous month, contributing to the tight market conditions.
Surrounding Areas:
- Airdrie: Stable sales above long-term trends with a high sales-to-new-listings ratio. Prices, particularly for apartments, are rising due to continued demand.
- Cochrane: Year-over-year sales have improved, but tight inventory continues to drive up costs.
- Okotoks: Experienced a slowdown in sales, especially for detached homes, due to limited supply. Prices remain elevated.
Recommendations for Buyers:
- Act Quickly: With inventory still below historical averages, buyers should be prepared to act swiftly. Homes, especially those in the lower price ranges, are selling quickly, often above the asking price.
- Expand Your Search: Consider looking at surrounding areas like Airdrie or Cochrane, where you might find more options and slightly less competition.
- Pre-Approval: Ensure you have mortgage pre-approval to strengthen your offer in a competitive market.
Recommendations for Sellers:
- Leverage the Seller’s Market: With over 40% of homes selling above the asking price, sellers can capitalize on the high demand by pricing their homes strategically.
- Highlight Affordability: Given the tight conditions for affordable homes, emphasizing the value and affordability of your property can attract more buyers.
- Market Professionally: High-quality photos and virtual tours can make a significant difference, especially when inventory levels are low and buyers have fewer options to choose from.
Market Outlook: The Calgary market is expected to see some easing in price growth as new supply comes online. However, tight conditions for affordable properties will continue to drive further price increases in those segments. Buyers and sellers should stay informed and work closely with their realtors to navigate this dynamic market effectively.
In summary, while the market shows signs of balancing, strategic actions by both buyers and sellers will be crucial in taking advantage of the current conditions in Calgary and its surrounding areas.