August sees record-high sales amidst historic low inventory pushing prices higher
Thanks to a surge in the condominium market, August sales reached a record high with 2,729 sales. Despite the record levels reported over the past several months, year-to-date sales are still down by 15 per cent compared to last year.
While new listings did improve compared to levels seen this time last year, the sales-to-new-listings ratio remained elevated at 87 per cent, preventing any significant shift from the low inventory situation. Inventory levels in August dropped to 3,254 units, not only a record low for the month but well below the 6,000 units that are typically available. Low inventory combined with high sales this month ensured the months of supply remained low at just over one month.
Higher lending rates have caused many buyers to either hold off on purchase decisions or shift toward more affordable products on the market,” said CREB® Chief Economist Ann-Marie Lurie. “The challenge has been the availability of supply, especially in the detached market. Inventory levels hit record lows in August, and while new listings are higher than last year, conditions continue to favour the seller, driving further price gains.
The unadjusted benchmark price reached $570,700 in August, representing the eighth consecutive monthly gain. Prices have trended up across all property types, with row-style properties reporting the largest increase.
With 204 sales and 206 new listings, the sales-to-new-listings ratio pushed up to 99 per cent, causing inventory levels to decline. With only 176 units available in inventory, the months of supply once again dropped below one month.
The persistently tight market conditions continued to place upward pressure on home prices. In August, the unadjusted benchmark price reached $515,600, up from last month and nearly six per cent higher than last year’s.
Following several months of inventory gains, August saw inventory levels fall to 144 units due to a pullback in new listings. While sales did improve compared to last year, the pullback in new listings caused the sales-to-new-listings ratio to increase to 91 per cent. Meanwhile, the months of supply remained below two months, not as tight as what is being experienced in Airdrie but far lower than what we would typically expect in the town.
The persistently tight market conditions drove further price gains this month. The unadjusted benchmark price reached $534,700 in August, nearly one per cent higher than last month and over four per cent higher than last year’s levels. Prices trended up across all property types, but the most significant monthly gains occurred in the relatively affordable apartment condominium sector.
The 59 sales in August were met with 65 new listings in the month, causing further retractions to the already low inventory levels. With only 64 units available, Inventory levels hit a new record low for August. The drop in inventory also caused the months of supply to remain low at one month.
Despite the tight market conditions, benchmark prices decreased from last month’s high. The monthly variation is not uncommon for smaller centres, and it is important to note that with a benchmark price of $582,000, prices remain seven per cent higher than last year’s levels and 10 per cent higher than where we were at the start of the year.
Read the full release here https://www.creb.com/News/Media_Releases/2023/September/August_sees_record-high_sales_amidst_historic_low_inventory_pushing_prices_higher/ and reach out to me if you want to chat more about what’s going on in Calgary’s market. Join me on Facebook and Google to be a part of the action!