Calgary's January sales rose amid tight inventory, which led to higher prices: CREB

The Calgary Real Estate Board (CREB) reports a significant increase in January home sales in Calgary, reaching 1,650 units, representing a significant increase over last year's figures and long-term trends. This increase was driven by limited supply and strong demand, which continued to push prices higher.

New listings totaled 2,137 units in the month, the bulk of which was seen in homes priced above $700,000. However, despite the increase in new for-sale listings, the city's inventory situation remains dire. With just 2,150 inventory units, levels are near record lows set in January 2006, down 49 percent from the long-term average for the month.

High sales prevent supply from growing while keeping conditions tight

“Since last year, supply problems have been a constant problem. New listing gains this month helped provide options to potential buyers and supported sales growth. However, sales growth prevented any significant adjustment in supply, keeping conditions tight and supporting further price increases,” said Anne-Marie Lurie, chief economist at CREB.

Months of supply fell to 1.3 in January, down from the previous month and last year. This ongoing tightness in the market continued to put upward pressure on home prices, with the unadjusted benchmark price hitting $572,300 in the month, a 10 percent increase from last January.

Single-family homes: Sales and prices rise

A surge in new listings in the sub-divided sector boosted sales. But with a sales-to-new listing ratio of 77%, inventory levels remain low, especially in the $700,000-plus market segment.

Hence, there was no improvement in the months of supply, which fell to 1.4 months, which contributed to further price increases. The unadjusted detached price rose to $702,200 in January, up nearly 1 percent from the previous month and up 13 percent from a year ago.

Semi-detached and townhouses: Shifting market dynamics

In the semi-detached segment, while new listings and sales rose, the sales-to-new listing ratio fell to 59 percent (the lowest since 2020), leading to a slight improvement in inventories. The unadjusted benchmark price for January was $625,000, down slightly from the previous month but up 11% from last January.

Similarly, row homes experienced an increase in new listings and sales, which contributed to lower inventory levels and higher prices. The unadjusted benchmark price in January hit $426,400, up 20 percent from last year.

Condominiums: Sales increased amid limited supply

Apartment-style properties witnessed a significant increase in sales, rising 54 percent year-on-year to 488 units in January. However, despite the increase in new listings, inventory remained 40 percent below long-term trends, putting upward pressure on prices. The unadjusted benchmark price in January rose to $324,000, up 19 percent from last year.

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