Calgary's residential real estate market continues its downward trajectory, marking the sixth consecutive month of declining prices amid falling sales activity, according to recent data from the Calgary Real Estate Board (CREB).
Market Overview: Sustained Decline in Sales and Prices
The city's housing market experienced a significant 13% year-over-year decrease in sales during October, with only 1,885 transactions completed. This decline occurred despite a modest improvement from September's 1,720 sales, indicating some month-over-month recovery in activity.
The benchmark price for all housing types in Calgary dropped to $568,000 in October, representing an approximate 4% decrease compared to the same period last year. This marks the sixth straight month where prices have fallen on a year-over-year basis, confirming a sustained cooling trend in the market.
Segment Analysis: Varied Performance Across Property Types
The downturn affected nearly all housing categories, with condominium apartments experiencing the most substantial price decline. Apartment benchmark prices fell nearly 7% to $318,200, while row homes saw the next largest drop at nearly 6%, settling at $431,200.
Single-family detached homes, typically the market's most stable segment, recorded a more modest 1% price decrease to $744,400. Semi-detached homes emerged as the only category showing price resilience, with a nearly 1% increase to $683,100 compared to October 2024.
Inventory and Supply Dynamics
While inventory decreased by nearly 8% from September to October, the market continues to face substantial year-over-year supply increases. Overall inventory jumped 30% compared to October last year, contributing to increased market balance.
The combination of falling demand and rising supply has pushed the months of inventory to nearly 3.5 months, representing a 50% increase from October 2024. This shift toward a more balanced market provides buyers with greater selection and negotiating power compared to the tight conditions of previous years.
Sales declines were observed across all property types, with apartments experiencing the most significant drop at 26%, followed by row homes at 22%. Single-family detached home resales decreased by 5%, while semi-detached homes saw the smallest decline at just 1%.
