New infills post better than expected sales performance during the month of March despite low inventory levels.
Single-family new infills posted 54 sales during the month of March, considerably up from the 30 sales recorded last month and also up from the 44 sales recorded in March of last year.
Single-family new infill inventory decreased slightly to 159 active listings, from the 165 active listings recorded last month, but is much higher than the 117 active listings recorded at this time last year.
New infill townhomes posted 11 sales during the month of March, up considerably from the 6 sales recorded in February and up slightly from the 9 sales recorded in March of last year.
New infill townhome inventory remains on par with last month at 17 active units for sale but is down slightly from the 19 active units recorded at this time last year.
With inventory holding steady, given the current level of sales activity, new product entering the market is selling well. This is especially true for completed homes and presales in established, low-inventory communities.
CALGARY MARKET UPDATE (CREB)
City of Calgary, April 3, 2023 - Sales and new listings have improved over the levels reported at the beginning of the year. As a result, the spread between sales and new listings supported some expected monthly inventory level gains. However, the 3,233 available units reflected the lowest March inventory levels since 2006 and left the months of supply just above one month, firmly in the seller’s territory. While conditions are not as tight as last March, low inventory levels leave purchasers with limited choice, once again driving up home prices.
Total unadjusted residential home prices reached $541,800 in March, a two percent gain over last month and nearly one percent higher than prices reported last year. While prices remain below the May 2022 high of $546,000, the pace of price growth over the first quarter has been stronger than expected due to the persistent seller’s market conditions.
“As expected, sales have eased from record levels while remaining stronger than they were before the pandemic thanks to recent gains in migration supporting demand,” said CREB® Chief Economist Ann-Marie Lurie.
“The challenge has been centered around supply. As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”
March recorded 3,318 new listings compared to the 2,432 sales, leaving the sales-to-new listings ratio relatively high at 73 percent. However, both sales and new listings have eased by 40 percent compared to levels reported last March.