Calgary housing inventory returns to 2021 levels: CREB report

Calgary’s housing supply has been rising over the past year, bringing the temperature down for a previously red-hot market.

The city’s housing inventory has returned to 2021 levels, reaching 6,941 units by the end of June, according to the Calgary Real Estate Board.

The growing number of listings has been met by a decline in sales over recent months, although the number of sales remains consistent with long-term trends.

Chief among them are apartment- and row-style homes, which are 30 per cent higher than historical levels.

“Supply has improved across rental, resale and new home markets, allowing for more choice for those considering their housing options,” Ann-Marie Lurie, chief economist at CREB, wrote in a statement.

“The additional choice, combined with no further declines in lending rates, persistent uncertainty and concerns of price adjustments, is keeping many potential purchasers on the sidelines. This is weighing on home prices, especially for apartment and row-style homes.”

According to CREB, the unadjusted benchmark price in Calgary was $586,200 in June, lower than the previous month and more than three per cent less than the same period a year earlier. Much of this decline was led by apartments and row houses, which are more than three per cent lower than last year.

With nearly four months of supply, the market for the latter kinds of housing now favours buyers.

Conditions for detached and semi-detached homes, meanwhile, are relatively balanced, CREB said. Sales for these kinds of housing have also slowed, but a rise in supply hasn’t offset the increased prices over the past couple of years.

In Calgary’s bedroom communities, the reality is more nuanced. For instance, in Airdrie, higher supply has pulled prices down for the second consecutive month. The benchmark price in June was $538,300, nearly three per cent lower than last year.

In Cochrane, sales for detached and semi-detached housing rose in June, while apartments and row houses didn’t sell nearly as well. As of last month, the unadjusted benchmark price was $593,700, nearly one per cent higher than last month and four per cent higher than last June.

Meanwhile, in Okotoks, housing starts and sales both fell, preventing prices from falling in the short run. The benchmark price in June was similar to the month before, but was three per cent higher than last year.

hmansukhani@postmedia.com