Calgary Housing Market Sees Average Days on Market Rise to 38

The housing market in Calgary is experiencing a significant slowdown, with homes now spending an average of 38 days on the market. This figure represents nearly double the time compared to the same period last year. According to a report released in August by the Calgary Real Estate Board (CREB), the rise in days on market reflects increasing supply and a decline in sales activity.

As of August 2023, the citywide benchmark price for homes in Calgary reached $577,200, marking a decrease of over four per cent from the previous year and a drop from the price in July. The report highlights that apartment and row-style homes have seen the steepest price adjustments. Specifically, apartment prices have fallen to a benchmark of $326,500, nearly six per cent lower than in August 2022. Row homes experienced a similar trend, with prices declining to $439,600, representing a five per cent year-over-year decrease.

In contrast, detached homes saw only a minor decline of 0.9 per cent, maintaining a benchmark price of $755,600. Semi-detached homes remained relatively stable, with a slight increase of 0.9 per cent in prices compared to last year. The price adjustments in apartments and row-style homes are largely attributed to a significant rise in supply coupled with slow sales.

The CREB report notes that sales in August 2023 dropped nearly nine per cent compared to the same month in 2022. Concurrently, inventory levels surged by 48.2 per cent, leading to a total of 6,661 homes available on the market, the highest number for August since 2018. With current inventory levels, it would take approximately 3.4 months to sell all listed homes, a figure that exceeds the past four years but remains below the buyer market conditions experienced prior to the pandemic.

Ann-Marie Lurie, chief economist at CREB, emphasized the importance of perspective when assessing price adjustments. “The most significant price adjustments are occurring for row and apartment-style homes as they are also the product type that are facing the largest gains in supply choice,” Lurie stated in the report.

The current dynamics of the Calgary housing market indicate a shift influenced by rising inventory and changing buyer preferences. While the increase in days on market and the decline in prices may suggest a cooling trend, it remains to be seen how these factors will shape the future of the market as economic conditions evolve. The full CREB report is available for public viewing online.