Calgary home prices continue to soar as demand outpaces supply: Royal LePage
Posted Jul 11, 2024 9:35 am.
Last Updated Jul 11, 2024 9:40 am.
Home prices in Calgary continue to skyrocket as those in the market for a property compete for dwindling inventory, according to new data from Royal LePage.
The report, released Thursday, says the aggregate price of a home in Calgary increased 7.9 per cent year over year to $694,000 in the second quarter of 2024.
The price of single-family detached homes continues to soar, increasing 8.3 per cent year over year to $797,200.
During the same period, the median price of a condo increased 8.6 per cent of $273,600.
“Sales activity remains strong in Calgary, with many homebuyers competing for properties in multiple-offer scenarios,” explained Corinne Lyall, broker and owner, Royal LePage Benchmark.
She says the June interest rate cut by the Bank of Canada hasn’t provided much relief for prospective buyers.
“So far, the long-awaited rate drop has only really benefited variable-rate mortgage holders, who are now seeing some relief on their monthly mortgage payments,” Lyall said.
Inventory in Calgary has increased, but not enough to keep up with current demand levels, she adds, saying there has consistently been one month of supply available for all property types.
In a bid to add more properties to the city’s supply, Lyall says developers are opting to build multi-unit properties on single lots.
Royal LePage expects sales to slow in the summer before activity picks up in the fall. Sales could be especially strong toward the end of the year if interest rates continue to go down.
“My hope, however, is that rate cuts will roll out gradually so that supply levels have enough time to be replenished ahead of rising buyer demand,” Lyall said.
Royal LePage is forecasting that the aggregate price of a home in Calgary will increase 8.0 per cent in the fourth quarter of 2024, compared to the same quarter last year. Nationally, it predicts the aggregate home price will increase to nine per cent in the fourth quarter of 2024, compared to the same quarter last year.
Across the country, the aggregate price of a home increased 1.9 per cent year over year to $824,300.
