As inventory levels in the overall market reach critically low levels, sales in the new infills sector remain steady.
Single-family new infills posted 44 sales during the month of May, slightly up from the 42 sales recorded last month and up considerably from the 23 sales recorded in May of last year.
Single-family new infill inventory has declined further, to 149 active listings, from 152 active listings recorded last month, but is up from the 126 active listings recorded at this time last year.
New infill townhomes posted an impressive 13 sales during the month of May, up from the 5 sales recorded last month and up from the 6 sales recorded in May of last year.
New infill townhome inventory has declined further to roughly one month of inventory, only 14 active units for sale, also down from the 23 active units recorded at this time last year.
As inventory levels continue to steadily decline, upward pressure on prices is expected to continue, especially given limited relief from the overall MLS market.
CALGARY MARKET UPDATE (CREB)
City of Calgary, June 1, 2023 - Thanks to a significant gain in apartment condominium sales, May sales rose to 3,120, a new record high for the month. While the monthly gains have not outweighed earlier declines, this does reflect a shift from the declines reported at the start of the year.
At the same time, we continue to see fewer new listings on the market than last year, causing inventory levels to fall. With a sales-to-new-listings ratio of 85 percent and months of supply of one month, conditions continue to favour the seller placing further upward pressure on home prices.
“Calgary’s housing market continues to exceed expectations with the recent gain in sales activity this month,” said CREB® Chief Economist Ann-Marie Lurie. “The higher interest rate environment and recent rental rate gains have driven more consumers to seek apartment condominium units. In addition, the recent rise in new apartment listings has provided enough options to support the sales gain. Calgary continues to benefit from the relatively healthy job market and recent population growth keeping housing demand strong across all property types.”
Persistently tight market conditions drove further price growth this month. In May, the unadjusted benchmark price reached $557,000, over one percent higher than last month and nearly three percent higher than last year’s monthly peak price of $543,000.