Calgary Real Estate Market Update – June 2024
This past month we saw one segment drop in price by over 3%! I know what you might be thinking, everyone is either in vacay mode or ready to take the next 10 days off for Stampede.
But a trend is a trend. And it’s one we have seen twice before and tell us where we we might be heading as we take on the second part of the year.
But let’s get into the numbers and review how we did last month.
AGGREGATED ABSORPTION RATE (ABS Rate) – CALGARY – ALL SEGMENTS
Doesn’t that green line look a lot like that blue and red one so far this year?
Can you tell I geek out on things like the statistics of our housing market 🙂
June was a month of yet another decline in activity for the Calgary housing market. This past month we saw the ABS Rate drop to 71%, which if you are keeping track, is a 14% drop from last month.
This drop marks the third decline and brings us even closer to the zone of a balanced market which is roughly between 40-60% absorption.
Each year we have seen how our market takes off like a rocket ship, but towards the end of the year we are safely in our parachute making a nice soft landing.
What would make this year any different?
The decline in the ABS rate can be attributed to a couple of different factors.
Listings are up again month over month by 6%. This increase in inventory is very much welcomed to stabilize our market but has been plagued with not making the impact it needs because sales continued to outpace this increase.
This changed in June as well.
Sales for the month are down 11% from May indicating that fewer buyers have been active in the market.
With listings up, and sales down, inventory becomes the benefactor that allows for more stabilization to pricing, which we will discuss below.
You could attribute this exodus of buyers to a couple of different factors. Some might say the higher rates are finally taking their hold on household. Others could say the higher unemployment rate is driving more buyers away from the market.
Some might even say when Stampede hits, all bets are off. The city shuts down for 10 days.
Regardless of what you feel is the reason, the fact is more listings are coming onto the market, increasing the pool buyers today and down the road have access to, elevating the demand we have seen surge in the beginning of the year.
And we know this is true when we start to look at how pricing has started to shape as Q2 of the year comes to a close.
MEDIAN SALES PRICES PER SEGMENT
Yes, you are reading that table right. There is a 5 in front of the value on the attached home segment. Something very welcomed to see.
In June, the detached and attached segments both saw declines. Albeit the detached decline is ever so modest, but as we are starting to see, these declines start to snow ball. This is most evident with the attached segment, which is currently priced at a level that near February of this year.
The detached market has also remained steady for three months without any major increases in value.
The shift seems to be now into the townhouse and apartment segments. As affordability continues to trouble most Calgarians, more and more are being priced out of the detached and attached segments and are returning back to more affordable housing.
Will this pendulum shift to attached as rates decline, that is something only time will tell.
Don’t get me wrong, we are still well above our market from 2023 with increases from 7-20% depending on the segment you are looking at. However, this month we are seeing the market slow down, which is to be expected as our economy tends to do the same.
But what does this mean for you looking to buy, sell, or navigate your mortgage down the road. Let’s take a look below.
BREAKDOWN
Sellers
As I mentioned above, this year has been better than last. Considering inventory levels are where they are right now, it is definitely a good time to sell. However, you need to have a plan of what you are going to do when you do sell.
Its a two sided coin, and you need to make sure you are navigating it properly and with the best advice possible. Some sellers I’ve worked with won’t sell until they have found the right home.
Others have decided to downsize, rent and when they find the right home, take action.
Regardless of your plans, we need to make sure we are having this discussion when you are considering to sell your home.
It never hurts to have a plan!
Buyers
The window is here if you don’t want to take the summer off. We are in a bit of a lull right now where you might find that right home while everyone else is waiting for the next rate drop or recovering from Stampede. Get more active with your search and make sure you are speaking to a mortgage broker before you search for your next home to understand the budget (including all the fees and taxes you might anticipate) so you are prepared and ready to go.
I’m more than happy to help you get these numbers together even if you are working with another realtor. Its better to have this than not, trust me.
Mortgage Renewals and Refinancing
Renewals are scary, without a doubt, and as the economy slows, rate declines more unlikely, this can be troublesome for your household. If you have questions about the different options you have at your disposal, please feel free to reach out and we can chat about it.
Simple things like re-amortizing your mortgage can help to flatten your payment amidst the higher ate and soften the blow.
THANK YOU
As always, thank you for taking the time to check this breakdown out. I hope you found it useful. I’m always open to making this better so please feel free to reach out with any feedback you might have.
If you’d like to chat about the buying, selling, or mortgage process, I’d love to earn the opportunity to be your call. Feel free to book some time with me below and lets chat.
→ Book a meeting with me, click here
Take care, have a great Stampede, and I hope we can connect soon.
Aly
