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February Market Update: Detached Homes in Demand, Apartment Oversupplied
In February, Calgary's real estate market showed mixed conditions across property types. Detached homes experienced tight market conditions, with less than three months of supply, driven by strong demand and limited inventory. Meanwhile, apartment-style properties faced oversupply, as increasing listings and slowing migration contributed to a buyer's market. Despite record construction levels for apartments, the excess supply continued to pressure condo prices downward. Detached homes, particularly those under $700,000, remained in high demand, while higher-priced detached homes and semi-detached homes saw more balanced conditions.
Citywide, the market remained relatively stable with a three-month supply and a 55% sales-to-new-listings ratio. February saw 1,526 sales, an 11% decline from the previous year, largely due to weaker apartment and row home sales. However, benchmark prices for most property types increased by 1% from January, though they were still 4% lower year-over-year. The apartment market continued to struggle, with declining prices, while detached homes and semi-detached homes saw slight price gains due to tighter supply.
Detached homes saw stable sales and new listings, with 736 sales and 1,269 new listings in February. This resulted in a 58% sales-to-new-listings ratio, keeping inventory levels balanced at just under three months. The benchmark price for a detached home rose to $734,300, a 1% increase from January but still 3% lower than last year. Semi-detached homes experienced tighter conditions with 175 sales and 253 new listings, dropping the months of supply to 2.4. Their benchmark price increased by 2% to $682,200 compared to January.
Row homes saw a slight market pickup with 270 sales in February, bringing the sales-to-new-listings ratio to 55%. Prices rose to $423,600, aligning with typical seasonal trends. However, prices were still 5% lower year-over-year, with notable declines in the Northeast and East districts. The apartment condominium sector continued to face high inventory, leading to a low sales-to-new-listings ratio of 46%. The benchmark price fell to $298,600, nearly 1% lower than January and over 9% lower than last year, with significant price drops in the Northeast, East, and Southeast.
In the regional markets, Airdrie, Cochrane, and Okotoks showed varied conditions. Airdrie’s market remained balanced, with prices 5% lower than last year due to increased competition from new homes. Cochrane’s market saw stable conditions with a sales-to-new-listings ratio of 59%, while Okotoks experienced tighter conditions with under three months of supply, pushing prices up by 2% from January. Overall, Calgary's market showed strength in detached and semi-detached homes but struggled with excess supply in the apartment sector.