Calgary’s real estate market saw a steady trend in October, with home sales remaining flat compared to the same time last year. However, there is a noticeable discrepancy in the supply of lower-priced homes, which is causing concern among potential buyers.
According to the latest data from the Calgary Real Estate Board (CREB), a total of 1,764 homes were sold in October 2021, which is only a slight decrease of 0.6% from October 2020. This indicates a stable market, with no significant changes in demand for homes.
However, the supply of lower-priced homes, specifically those priced below $500,000, is lagging behind. This is evident in the fact that the number of new listings in this price range decreased by 10.6% compared to last year. This shortage of affordable homes is making it challenging for first-time homebuyers and those looking to downsize to find suitable options.
CREB’s chief economist, Ann-Marie Lurie, explains that the lack of supply in the lower-priced segment is due to the high demand for these homes, which is driving up prices. This, in turn, is causing some potential sellers to hold onto their properties, as they may not be able to afford a new home in the current market.
On the other hand, the supply of higher-priced homes, particularly those priced above $600,000, has increased by 10.5% compared to last year. This is likely due to the fact that these homes are more in line with the current market conditions and are therefore more attractive to sellers.
Despite the overall stability in the market, the average price of a home in Calgary has increased by 8.6% compared to last year, reaching $495,000. This is mainly driven by the increase in prices for detached homes, which saw a 10.5% jump in average price.
In conclusion, while Calgary’s real estate market remains steady, the shortage of lower-priced homes is a cause for concern. This trend may continue in the coming months, as the demand for affordable homes shows no signs of slowing down.
