Dione Irwin RE/MAX House of Real Estate

Calgary-Area Market Update for May

Olivia Irwin
Sunday, May 12, 2024
Calgary-Area Market Update for May

May’s market update marks a continuing rise in housing prices throughout Calgary and the surrounding area. Statistics show that sales in April were 37% higher than they have been in year over year analysis, and with there being no balancing in the discrepancies between existing supply and demand in the market. This persistent price growth seen over the course of this year has continued to rise, up 7% over the course of April.

 

In April we found that there were 3491 new listings and 2881 sales in Calgary, however, the end of April only showed 2771 units for sale in Calgary, half as much as is normal for this time of year. This is further evidence supporting the notion that, at least for the next few months, prices will continue to rise. 

 

There has been a decline in inventory for homes priced below $500 000 in April, and May will see more homes listed above $700 000, with the more affordable sections of Calgary experiencing more significant price increases than other areas.

 

The median, or “benchmark” price seen in Calgary this May is $603 700. Cities surrounding Calgary are also noticing the continued rise of prices through April into May. The Airdrie average is at $549 100, while Cochrane and Okotoks are now at $561 000, and $617 200, respectively. All three of these smaller cities have seen about a 10% increase in price in comparison to sales prices this time last year. 

 

For the past few years it has been reported that, from the time a house is put on the market to the time a deal is closed, about four months pass on average. Currently, houses are spending about 20 days on the market, and about 2 months before the deal is fully closed, cutting the normal average time in half. 

 

Each factor and evidence-point discussed ties back to the issue of supply and demand that the Calgary-area is facing at the moment. Market specialists note that the main driver of housing prices are inter-provincial migration that Alberta is experiencing right now. On the other hand, forecasters are saying that they expect the influx of migrants into Alberta, and specifically the Calgary area, to slow in the coming months. There has been a decline in population growth by migration in Alberta over the course of 2023 and 2024, down from 4.7% in 2023 to 3.6% in 2024. This supports the predictions of market forecasters, and means that we may be seeing the market slip into a more buyer-friendly environment sooner, rather than later.

 

In conclusion, the month of May sees short term trends point to a continuation in the rise of housing prices and costs through to the end of May, while long term trends may point to population growth slowing down, possibly leading to eventual decline in housing costs in general.


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