Single family new infill sales remain steady throughout September while new infill townhome sales hit the brakes as existing inventory lacks affordability for most townhome buyers.
Single-family new infills posted 27 sales during the month of September, down from the 33 sales recorded last month, however up considerably from the 17 sales recorded in September of last year.
Single-family new infill inventory has increased slightly, to 156 active listings, from 149 active listings recorded last month, also up from the 123 active listings recorded at this time last year.
New infill townhomes posted only one single sale during the month of September, down from the 6 sales recorded last month and also down from the 4 sales recorded in September of last year. With most active product listed well above $650,000, slower sales are likely a result of affordability and not decreased demand.
New infill townhome inventory is up slightly, to 13 active units for sale, from 11 active units recorded last month, however is down from the 17 active units recorded at this time last year. New infill townhome inventories continue to see depressed construction starts as most developers opt to hold new projects as purpose-built rentals instead of selling individual units.
With another interest rate announcement just around the corner and inflation numbers higher than expected, we anticipate the probability of another interest rate hike to be likely. If rates continue to climb, this is expected to add some downward pressure on new infill sales as we start to head towards the Winter selling season.
CALGARY MARKET UPDATE (CREB)
City of Calgary, Oct 2, 2023 - Calgary home sales hit record highs in September, with 2,441 sales, yet supply remains a challenge. Despite the year-over-year gains reported over the past four months, year-to-date sales are still nearly 12 percent lower than last year's levels.
New listings also improved this month compared to last year and relative to sales. This caused the sales-to-new listings ratio to fall to 76 percent, preventing further monthly declines in inventory levels.
Nonetheless, inventory levels in September remained over 24 percent lower than levels seen last year and, when measured relative to sales activity, has not changed enough to cause any significant shift in supply and demand balances. As of September, the months of supply has remained relatively low at less than two months.
“Supply has been a challenge in our market as strong inter-provincial migration has elevated housing demand despite higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “While new listings are improving, it has not been enough to take us out of sellers’ market conditions.”
In September, the unadjusted residential benchmark price was $570,300, similar to last month and nearly nine percent higher than last year.
New listings also improved this month compared to last year and relative to sales. This caused the sales-to-new listings ratio to fall to 76 percent, preventing further monthly declines in inventory levels.
Nonetheless, inventory levels in September remained over 24 percent lower than levels seen last year and, when measured relative to sales activity, has not changed enough to cause any significant shift in supply and demand balances. As of September, the months of supply has remained relatively low at less than two months.
“Supply has been a challenge in our market as strong inter-provincial migration has elevated housing demand despite higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “While new listings are improving, it has not been enough to take us out of sellers’ market conditions.”
In September, the unadjusted residential benchmark price was $570,300, similar to last month and nearly nine percent higher than last year.