Increased supply, slowing demand continue to drive down Calgary's housing prices

Calgary’s real estate market continued its shift toward favouring buyers in September, as an increase in new listings and rental options met slowing demand, according to the Calgary Real Estate Board (CREB).

It said the months of supply (the amount of time it would take for all current listings to sell if none were added) reached four months — the highest it’s been since early 2020.

“The additional supply choice is coming at a time when demand is slowing, mostly due to slower population growth and persistent uncertainty,” said Ann-Marie Lurie, chief economist at CREB. 

“Resale markets have more competition from new homes and additional supply in the rental market, reducing the sense of urgency amongst potential purchasers. Ultimately, the additional supply choice is weighing on home prices.”

Apartment-style homes saw the biggest shift, with the ratio of sales to new listings falling to 43 per cent and the months of supply reaching five months.

The benchmark price for apartments in September was $322,900 — down one per cent from the previous month, and six per cent lower than a year ago. 

The ratio of sales to new listings for detached homes fell to 45 per cent in September, which is the lowest since 2018. However, the benchmark price was down less than one per cent from both last month and last year, at $749,900.

Row houses saw a more modest increase in supply, resulting in a sales-to-new-listings ratio of 51 per cent. September’s benchmark price for row houses was $437,100 — down almost five per cent from last year, but less than one per cent lower than last month.

The sales-to-new-listings ratio for semi-detached homes dropped to 43 per cent in September, driving months of supply up to almost four months. The previous month saw less than three months of supply, but CREB said it’s too early to know if that trend will continue.

The benchmark price for semi-detached homes was $684,800 — slightly lower than the previous month but up almost one per cent over last year. 

Airdrie saw similar inventory gains in September, with a sales-to-new-listings ratio of 45 per cent. Months of supply rose to more than four months — the highest since 2020. Prices continued to trend downward, with a benchmark price of $526,000, which is one per cent lower than last month and almost five per cent lower than last year. 

The sales-to-new-listings ratio in Cochrane dropped to 42 per cent, with months of supply at more than five months. Cochrane saw a benchmark price of $584,300 — down almost one per cent from last month, but one per cent higher than last year. 

In Okotoks, the benchmark price of $613,900, down by more than one per cent from last month, and three per cent lower than September 2024.