Calgary Housing Market Heats Up Despite Low Inventory and High Rates
Calgary's housing market is showing signs of a tale of two cities in February 2024. While new construction is booming, with record starts and homes under construction, existing home sales remain brisk but below pre-pandemic levels.
Houses in High Demand, Low Supply
Demand for single-family homes in Calgary is outpacing supply, leading to a seller's market. Inventory sits well below two months, meaning available existing homes would be sold off quickly at the current sales pace.
This scarcity, combined with lower-than-average homeowner mobility, has kept active listings low. Despite rising mortgage rates, house prices have accelerated significantly in the first two months of 2024.
Condo Market Booming
The condo market, on the other hand, is experiencing a red-hot year. Condo purchases are exceeding levels seen in all previous years.
Similar to the house market, condo inventory is very low, with nearly a month's supply available. Active condo listings are also at multi-year lows. While condo prices are rising as well, the increase is more moderate and consistent compared to single-family homes.
This trend suggests a potential shift in buyer preferences, with some opting for condos due to affordability or lifestyle changes. It will be interesting to see if this trend continues and how it impacts the overall Calgary housing market in the coming months.
