Calgary condo inventories are surging, but prices aren't coming down

Despite rising inventory levels, prices for Calgary's condos keep on rising as demand continues to outpace supply, a new report says.

The report by ReMax Canada zeroed in on condominium activity from January to August of this year in seven major markets across the country.

It found Calgary in third place when it comes to condominium inventory level growth year-over-year — meaning how many condominiums are available for sale, compared to the year prior — behind B.C.'s Fraser Valley and the Greater Toronto Area.

While inventory is growing, prices in the city are not stabilizing or decreasing. 

The year-to-date average price has climbed a little more than 15 per cent year-over-year to just over $347,000, up from more than $301,000 in 2023, the report states. That leads Canada's major markets in terms of price growth.

Sales increased by almost three per cent in the first eight months of the year, the report says, with 5,722 sales compared to 5,577 during the same period in 2023. 

Calgary has been the "shining star" in Canada for price growth and sales numbers, according to Christopher Alexander, president of ReMax Canada.

"Month after month and for almost three years in a row now, it's the leading city in Canada for price growth, and condos are no different," Alexander said.

"We're seeing a lot of Ontario and B.C. development groups moving into the city, launching projects and pre-construction. It's a very attractive place for real estate right now."

More condos, but higher demand

While condominium inventories are rising, that's not leading to a decline in price.

While it may seem like a significant gain in terms of inventories, it's important to understand where those inventories are starting from, said Ann-Marie Lurie, CREB's chief economist.

"We've been struggling with supply since last year. Even though we've seen a large increase, levels are really still below what we'd traditionally see in our market," Lurie said.

Much of that has to do with both international and interprovincial migration, Lurie said. 

As of July 1, Alberta's population was estimated to be 4,888,723, and the province continued to see the highest growth among all provinces and territories in the second quarter of 2024. 

In the 12 months preceding July 1, the province's population expanded by 204,209 people, according to Statistics Canada.

"Interprovincial migration may have slowed from year-ago levels, however, overall net migration to Alberta continues to climb, sparking demand in the province's affordable real estate market," reads the report from ReMax.

Calgary's top neighbourhoods

The ReMax Canada report zeroed in on 12 neighbourhoods in Calgary that the real estate organization chose based on popularity and where most of condo sales were occurring.

Seven of the 12 areas surveyed posted double-digit price gains compared to the year prior, but growth was seen in almost all of the city. 

The greatest percentage increase in sales was found in Eau Claire, Killarney/Glengary, Garrison Woods, Garrison Green and Currie Barracks.

"Most condominium apartment sales are occurring in the downtown district, where walkability plays a major role. Younger buyers tend to gravitate toward the core area, which allows residents to walk to work and amenities," the report reads.

Erick Dillman with the Calgary-based 2% Realty said he's noticed some hesitation from buyers in recent days in advance of potential future interest rate cuts.

"People have a point where they just have to either decide to jump into the market or renew a lease," he said.

The report goes on to say that first-time buyers of condos, seeking attractive price points, are most active in the suburbs, including in McKenzie Towne, Panorama Hills and Saddle Ridge.

Long-term, Alexander said he doesn't expect much slowdown on the horizon, other than typical seasonal trends.

"I think that Calgary is going to continue to attract people from all over Canada because of its quality of life and its emerging diversification," he said.