Sales activity and inventories in both the single-family and townhome sectors remain steady compared to last month but continue to indicate a slowing market compared to the intense first quarter of 2022. Following a similar trend to the overall Calgary market, rising interest rates over the last few months have continued to impact both the single-family and townhome new infill markets, both of which have seen months of supply rise since the peak of the market frenzy in March.
Single-family new infills posted 19 sales during the month of June, down from the 23 sales posted in May and also down from the 25 sales recorded in June of last year. Year-to-date single-family sales are sitting at 194, down 14% compared to 2021 but up 60% compared to the same period in 2020.
Single-family new infill inventory has declined to 120 active listings from the 126 active listings recorded last month and down from the 149 active listings recorded at this time last year. Year-to-date average inventory sits at 121 active listings, down 18% compared to 2021 and down 42% compared to 2020.
New infill townhomes posted 6 sales during the month of June, on par with the 6 sales recorded last month but down considerably from the 15 sales recorded in June of last year. Year-to-date townhome sales sit at 53, down 43% compared to 2021 but up 26% compared to 2020.
New infill townhome inventory is also up slightly, to 25 active units for sale, from 23 active units recorded last month, but down considerably from the 44 active units recorded at this time last year. Year-to-date average townhome inventory sits at 23, down 58% compared to 2021 and down 62% compared to 2020.
Although sales for both single-family and townhome infills have been softening over the last few months, inventories remain very low, and prices continue to trend upwards. This is especially true for completed product in the entry-level price ranges. That said, with another interest rate hike likely around the corner, we anticipate prices to level off in the coming months. Months of supply have been trending upwards for the last few months, indicating that the market is heading to more balanced conditions, which tends to slow price growth.
City of Calgary, July 4, 2022 - Sales activity in June eased relative to the past several months and with 2,842 sales, levels declined by two per cent over last year’s record high. While sales activity has remained relatively strong for June levels, the decline was driven by a pullback in detached and semi-detached home sales.
Single-family new infills posted 19 sales during the month of June, down from the 23 sales posted in May and also down from the 25 sales recorded in June of last year. Year-to-date single-family sales are sitting at 194, down 14% compared to 2021 but up 60% compared to the same period in 2020.
Single-family new infill inventory has declined to 120 active listings from the 126 active listings recorded last month and down from the 149 active listings recorded at this time last year. Year-to-date average inventory sits at 121 active listings, down 18% compared to 2021 and down 42% compared to 2020.
New infill townhomes posted 6 sales during the month of June, on par with the 6 sales recorded last month but down considerably from the 15 sales recorded in June of last year. Year-to-date townhome sales sit at 53, down 43% compared to 2021 but up 26% compared to 2020.
New infill townhome inventory is also up slightly, to 25 active units for sale, from 23 active units recorded last month, but down considerably from the 44 active units recorded at this time last year. Year-to-date average townhome inventory sits at 23, down 58% compared to 2021 and down 62% compared to 2020.
Although sales for both single-family and townhome infills have been softening over the last few months, inventories remain very low, and prices continue to trend upwards. This is especially true for completed product in the entry-level price ranges. That said, with another interest rate hike likely around the corner, we anticipate prices to level off in the coming months. Months of supply have been trending upwards for the last few months, indicating that the market is heading to more balanced conditions, which tends to slow price growth.
CALGARY MARKET UPDATE (CREB)
City of Calgary, July 4, 2022 - Sales activity in June eased relative to the past several months and with 2,842 sales, levels declined by two per cent over last year’s record high. While sales activity has remained relatively strong for June levels, the decline was driven by a pullback in detached and semi-detached home sales.
“As expected, higher interest rates are starting to have an impact on home sales. This is helping shift the market toward more balanced conditions and taking some of the pressure off prices,” said CREB® Chief Economist Ann-Marie Lurie.
“While we are starting to see some transition, it is important to note that in Calgary year-to-date sales are still at record levels and prices are still far above expectations for the year.”
This pullback in sales was not met with the same level of pullback in new listings. This caused inventories to trend up over previous months. These shifts are supporting some easing from the exceptionally tight conditions as the months of supply remained just shy of two months. While two months is still considered low for our market, it is a significant change over the one month of supply recorded earlier in the year.
After three months of gradual gains in the months of supply, prices eased slightly relative to last month. However, with a city-wide benchmark price of $543,900, levels are still over 13 per cent higher than last year.
With further rate gains expected, we could continue to see slower sales activity and some monthly price growth slippage in the Calgary market in the coming months. However, thanks to renewed migration and job growth in a wide range of sectors, it is unlikely that we will see a full reversal of the price gains made so far this year.