When analyzing the market developments that happened over the course of September, we are only seeing major inventory increases happening for homes in the higher price ranges. Limited choices in the lower price range are a major factor in why sales have actually gone down slightly from last month in Calgary, Airdrie, Cochrane and Okotoks. While prices are still declining, Calgary’s average is still about 5% higher than it was last year, at $597 000.
Let’s check out Calgary’s prices. Detached homes fall at $757 000, while semi-detached homes are at about $678 000. Apartments are showing an even $345 000, and townhomes are around $459 000. As we saw in the last update, all of these numbers are at least $1000 lower than the month before. While inventory in general continues to rise,the majority of new listings coming to the market are around $700 000.
Regional prices are also lower again. Airdrie is at $551 000, Cochrane, $578 000, and Okotoks has a benchmark of $630 000. Compared to last year, the amount of units for sale are substantially higher, with Airdrie experiencing an almost 75% increase in inventory levels. It is also a relief to see that each city has between 2 and 3 months of supply for housing based on current statistics on population increase. These numbers were at or below 1 month’s supply for the whole first part of 2024, and it clearly shows how we are leaving behind the extreme competitive nature of this year’s real estate market so far.
Sales may be lowering not just because of the higher prices still on the market, it could also be affected by the lowering interest rates implemented by the government of Canada. Lower interest rates can drive up house prices slightly at first, and buyers may also be biding their time. Because of the implementation plan for lowering interest rates, people are expecting them to become more reasonable over time. This may mean that the market could be a bit slower for a little while as buyers wait for things to become more affordable, but there are always fun new developments happening in housing to spice things up!