Calgary’s Housing Market Is Splitting Into Two Very Different Markets
February’s housing numbers reveal something interesting happening in Calgary right now. While the overall market appears balanced on paper, conditions vary dramatically depending on the type of home.
Citywide inventory is sitting around three months of supply, which typically signals balanced conditions. But that average hides a growing divide between low-density homes and apartment-style properties.
Condos are clearly shifting toward a buyer’s market
The biggest change is happening in Calgary’s apartment condominium market.
Inventory has climbed to 1,580 units and months of supply is now well above four months. As supply continues to grow, prices are starting to adjust. The benchmark condo price dropped to $298,600 in February. That is nearly one percent lower than January and more than nine percent below where prices were a year ago.
Part of the pressure is coming from future supply. Calgary currently has close to 18,000 apartment units under construction. While many will become rentals rather than condos, this surge in development still adds competition and affects demand in the ownership market.
Some areas are seeing even more dramatic conditions. In the North East there is currently more than eleven months of condo supply.
Detached homes remain competitive, especially under $700K
At the other end of the spectrum, detached homes continue to face limited supply in more attainable price ranges.
Homes priced under $700,000 remain particularly tight. Overall detached inventory sits at just under three months of supply. The benchmark price rose slightly in February to $734,300, about one percent higher than January but still three percent below last year’s levels.
Conditions also vary widely across the city. The West district is currently the tightest area with less than two months of supply.
Semi-detached homes are the tightest segment right now
Surprisingly, the most competitive part of Calgary’s market right now is semi-detached homes.
With just 2.4 months of supply, this segment currently has the lowest inventory levels of any property type. Strong demand pushed the benchmark price up more than two percent from January to $682,200.
While this is a smaller segment of the market, the tighter conditions are helping support price stability in several districts.
Row homes are moving back toward balanced conditions
Row homes saw a surge of listings earlier this year, which briefly pushed supply above four months. February sales helped absorb some of that inventory and supply has now dropped back to just over three months.
Prices rose slightly in February to $423,600 following typical seasonal patterns. However, they are still about five percent lower than last year, with the steepest declines occurring in the North East and East districts.
Prices are starting the year slightly higher, month to month
Calgary’s overall benchmark home price reached $560,500 in February.
Prices typically increase early in the year as the spring market approaches, and February did show a modest monthly gain. However, the overall benchmark remains about four percent lower than this time last year.
The key takeaway is that Calgary’s market is no longer moving in one direction. Buyers and sellers are facing very different conditions depending on the type of property
