By Ali Larsen
Happy Fall! Here is your Monthly Market Update! There is more supply in the market.
Introduction
Sales gains for homes priced above $600,000 offset declines at the lower end of the market, resulting in October sales that were similar to last year. The 2,174 sales in October increased over September and stood 24 per cent above long-term trends for the month.
Supply levels improving for higher-priced homes
Supply levels have improved for higher-priced homes, with sales in October similar to last year. The 2,174 sales rose over September, standing 24% above long-term trends.
“Housing demand has stayed relatively strong in our market as we move into the fourth quarter,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, activity would likely have been stronger if more supply choices existed for lower-priced homes. Supply levels in our market are improving relative to last year, but much of the gains have been driven by higher-priced units for each property type. This results in conditions more balanced in the upper end of the market versus the seller’s market in the lower to mid-price ranges.”
New listings relative to sales over the past six months have boosted city inventory, with October’s 4,966 units marking a rise from last October’s 3,205. Almost half of the inventory is priced above $600,000, helping ease tight market conditions seen in spring. There are 2.3 months of supply, and the sales-to-new listings ratio is 67%. Detached homes under $700,000 have less than two months of supply, while those over $1,000,000 exceed three months.
In October, the total residential benchmark price reached $592,500, over four percent higher than last October. While unadjusted benchmark prices eased slightly due to seasonality, seasonally adjusted prices remained stable.
Detached
Detached sales rose to 1,071, up nearly 10% year-over-year. Though new listings slowed over last month, the sales-to-new listings ratio rose to 69%, maintaining inventory at two months. October’s detached benchmark price was $753,900, slightly lower than last month but still 8% higher than last year.
Semi-Detached
Sales rose over last month and were over 6% higher year-over-year. New listings growth has driven balanced conditions, especially for higher-priced properties, though the market still favors sellers with two months of supply. The October benchmark price held steady at $677,000, up over 8% from last year.
Row
Sales activity has slowed since June, primarily due to supply constraints in lower-priced homes. October’s months of supply rose above two months, driven by supply growth in higher-priced units, but prices remain high, with the benchmark at $456,600, over 8% above last year.
Apartment Condominium
October saw improved sales month-over-month, though sales have declined year-over-year. Limited supply of lower-priced units has driven demand, but inventory gains in the $300,000-$500,000 range are helping balance conditions. The October benchmark price was $341,700, down slightly but still 11% higher than last year.
Regional Market Facts
Airdrie
While both sales and new listings improved over the levels reported last October, the monthly pullback in new listings was enough to cause the sales-to-new-listings ratio to rise over last month, reaching 67 per cent. While this slowed the growth in monthly inventory levels, the 365 units in inventory is a significant gain over the exceptionally low levels of 213 reported last year at this time. Following three consecutive years of low inventory levels, recent gains are helping shift the market toward more balanced conditions.
A shift away from the extreme sellers’ market has reduced the pressure on home prices. The unadjusted benchmark price was down over last month in October, but it was still five per cent higher than last October. Some of the monthly decline is related to seasonal factors, as seasonally adjusted data indicates prices remained relatively stable over the past four months.
Cochrane
Sales this month improved over last year, keeping above long-term trends for the town. At the same time, new listings also improved, reporting the highest October total on record. Recent gains in new listings relative to sales have helped support some steady gains in inventory levels. However, with 178 units available in October, inventories are still below long-term trends, keeping the months of supply relatively low at 2.3 months.
While conditions are not as tight as in the spring, the shift is slowing the pace of price growth. The unadjusted benchmark price in October was slightly lower than last month but still six per cent higher than last year’s levels. Overall year-to-date average benchmark prices are over nine per cent higher than last year’s levels.
Okotoks
Sales in October improved over last year’s levels as recent gains in new listings provided choices for many buyers struggling with supply options. While the sales gain relative to new listings prevented further monthly gains in inventory levels, the 103 units available in October significantly improved over the near-record low of 66 units reported last October.
With less than two months of supply, conditions continue to favour the seller. The persistent seller market conditions have driven price growth in this market throughout most of the year. While unadjusted prices did ease slightly over last month in October, levels are still over six per cent higher than last October and over eight per cent higher on a year-to-date basis.