New infill sales declined during the month of April while inventory levels remained relatively unchanged.
Single-family new infills posted 28 sales during the month of April, down considerably from last month’s 44 sales and also down from the 42 sales recorded at this time last year.
Single-family new infill inventory has increased slightly, up to 120 active listings from 117 active listings recorded last month, but still considerably down from the 147 active listings recorded at this time last year.
New infill townhomes posted 7 sales during the month of April, down from last month’s 9 sales and considerably down from the 22 sales recorded in April of last year.
New infill townhome inventory currently sits at 22 active units for sale, up slightly from the 19 active units recorded last month but considerably down from the 45 active units recorded at this time last year.
Although recent sales activity indicates signs the market is cooling, this is more likely due to a lack of supply rather than an easing of demand. Current inventory levels are significantly bolstered by a higher than usual supply of pre-sale inventory, which typically represents a lower percentage of available housing during balanced market conditions. Although interest rates are rising and expected to rise further, demand for new infills is still very high, and prices are expected to continue to tick upwards as we move through the Spring market.
CALGARY MARKET UPDATE (CREB)
City of Calgary, May 2, 2022 - Following an all-time record high month of sales in March, activity slowed down in April. However, with 3,401 sales, it was still a gain of six per cent over last year and a record high for the month of April.
“Despite some of the monthly pullback, it is important to note that sales remain exceptionally strong and are likely being limited due to supply choice in the market,” said CREB® Chief Economist Ann-Marie Lurie. “While further rate increases will likely start to dampen demand later this year, more pullbacks in new listings this month are ensuring the market continues to favour the seller, resulting in further price gains."
New listings trended down relative to last month and levels recorded last year. With the sales-to-new listings ratio remaining above 74 per cent, there was not much of a shift in overall inventory levels.
With 4,850 units in inventory, we are nowhere near record low inventory levels, however, levels are far lower than what was recorded in April since 2014. What has changed in the market is the composition of the inventory levels. When comparing inventories today to what was available in 2014, we can see that detached homes comprise of a smaller share of the inventory levels especially for properties priced below $500,000.
Overall, the Calgary market has seen the months of supply remain below two months since November of last year, placing significant upward pressure on prices. The benchmark price in April reached $526,700, which is nearly two per cent higher than last month and 17 per cent higher than last year.