Calgary Home Sales Dip in June but Surpass Historical Levels Amidst Shifting Market Dynamics

In June, Calgary home sales saw a 12.8% decrease from the previous year, with 2,738 properties changing hands, a drop attributed to lower-priced homes. Despite this, sales remained 17% above long-term trends for the month. The benchmark price for all home types was $608,000, up 8.5% year-over-year, and only slightly higher than May. New listings fell by 3.6%, while inventory increased by 9.2% compared to last year. The shortage of affordable properties persists, with 40% of homes selling above the listed price, indicating a competitive market.

In the month of June, the Calgary housing market displayed contrasting trends in sales and prices. According to data from the Calgary Real Estate Board (CREB), home sales declined by 12.8% year-over-year, with 2,738 properties changing hands [1]. Despite this decrease, sales remained 17% above long-term trends for the month, indicating a continued demand for housing in the city.

The benchmark price for all home types in Calgary was $608,000, an 8.5% increase from the previous year [1]. This slight uptick in prices was in line with May's benchmark price and reflected the ongoing competition among buyers for available properties. The shortage of affordable homes was further highlighted by the fact that 40% of homes sold in June went for above the listed price [1], illustrating the competitive nature of the market.

The number of new listings on the market decreased by 3.6% compared to the same period last year, while inventory levels increased by 9.2% [1]. This rise in inventory could potentially lead to more balanced market conditions in the future, providing buyers with more options and potentially tempering price growth.

However, the current inventory levels are still relatively low when compared to historical averages. Furthermore, the ongoing demand for housing, coupled with the scarcity of affordable options, may continue to drive up prices in the short term.

It is essential to note that the Calgary housing market's performance should be viewed within the context of the broader economic environment. The city's economy, which is heavily reliant on the energy sector, has faced challenges in recent years due to fluctuations in oil prices. As a result, the housing market's performance may continue to be influenced by economic factors, both locally and nationally.

References:

[1] Calgary Real Estate Board. (2023, June 16). Calgary housing market statistics for June 2023. Retrieved from https://www.creb.ca/stats-reports/city-statistics/city-of-calgary-monthly-statistics

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