New infill inventory remains historically low as the Spring selling season enters its final weeks before summer.
Single-family new infills posted 47 sales during the month of May, down from 51 sales recorded last month but up from 44 sales recorded in May of last year.
Single-family new infill inventory has declined slightly, to 117 active listings for sale, from 118 active listings recorded last month and down from 149 active listings recorded at this time last year.
New infill townhomes posted 6 sales during the month of May, down from 9 sales recorded last month, and also down from 13 sales recorded in May of last year.
Interestingly, new infill townhome inventory has started to rise after years of declines. Currently sitting at 18 active units, inventory is up from 12 last month and 14 active units recorded at this time last year.
With a highly anticipated interest rate decision around the corner, sales activity in the new infill sector is expected to remain steady with the possibility of slight upward movement in pricing should interest rates start to decline, making a purchase more affordable for new infill buyers.
CALGARY MARKET UPDATE (CREB)
City of Calgary, June 3, 2024 - In a market that continues to show resilience, May saw a total of 3,092 resale home sales. While this figure is nearly one percent below last year's record high, it is 34 percent higher than long-term trends for the month. The pullback in sales was primarily driven by declines in lower-priced detached and semi-detached homes, where there was limited supply choice compared to last year.
"Although new listings have increased, much of this growth is in higher price ranges for each property type," said Ann-Marie Lurie, Chief Economist at CREB®. “Our strong economic situation has supported sales growth in these higher price ranges. However, this month's sales could not offset the declines in the lower price ranges due to a lack of supply choice."
New listings in May reached 4,333 units, almost 19 percent higher than last year. This increase in new listings compared to sales caused the sales-to-new listings ratio to drop to 71 percent, supporting a modest year-over-year inventory gain. Despite this, inventory levels remained nearly half what we typically see in May, with most gains driven by homes priced above $700,000.
While inventories did improve this month, conditions continue to favour sellers with one month of supply. Several districts continue to report less than one month of supply, while the City Centre reported the highest supply-to-sales ratio at one and a half months. Seller market conditions drove price growth across all districts in the city. The unadjusted total residential benchmark price in May reached $605,300, nearly one percent higher than last month and 10 percent higher than last May.