Calgary will remain a seller's market in 2024, but listings may increase: CREB

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Sellers in Calgary will likely remain in the driver’s seat in 2024 despite loosening conditions in the city’s housing market, the local real estate board says.

Calgary’s burgeoning real estate market is struggling to keep up with demand despite hitting new highs for housing starts, according to Calgary Real Estate Board’s (CREB) annual outlook report, released Wednesday.

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Several risks continue to hold for the market in 2024, Calgary remains significantly more affordable than other major Canadian cities.

“Moving into 2024, we anticipate that potential buyers who were previously on the sidelines due to limited supply choices may re-enter the market as lending rates ease and listings improve,” reads the report. “At the same time, with more mortgages set to renew, we could see some gains in real listings as existing homeowners who were previously hesitant to change their housing situation may be motivated to capitalize on rising prices and favourable seller market conditions.”

Four key markers were down significantly in 2023: sales (-8 per cent), new listings (-13 per cent), inventory (-26 per cent) and months of supply (-20 per cent). Meanwhile, the benchmark price in Calgary rose six per cent, hitting $556,975.

The housing crunch has led to a significant uptick in apartment building starts, which drove overall housing starts to the highest levels seen over the past 18 years.

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“The new home sector has responded to the recent rise in migration, but ultimately the level of construction will have to be more in-line with the migration figures before we see a substantial adjustment in supply,” the report says.

And Calgary, a city defined by suburban sprawl, is beginning to see apartment sales become and increasingly dominant choice for buyers.

In 2021, apartments made up just 15 per cent of all home sales. That number has nearly doubled, hitting 28.8 per cent in 2023 — a number that’s projected to rise.

More to come…

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