Calgary condominium prices rose year-over-year despite a national housing sales market slowdown in the second quarter of a 2024, according to a new Royal LePage report.

The median price of a Calgary condo jumped 8.6% year-over-year during the period to $273,600. By comparison. Calgary’s situation contrasted sharply with other Canadian markets that experienced price declines as prospective buyers did not rush into the market as expected after the Bank of Canada reduced its overnight interest rate to 4.75% from 5% in early June.

But Alberta’s largest city was still affected by prospective buyers’ reluctance to enter the market, Corinne Lyall, owner/broker at Royal LePage Benchmark.

“Sales activity remains strong in Calgary, with many homebuyers competing for properties in multiple-offer scenarios,” she said. “The June interest rate cut, however, did not add fuel to the already red-hot market. So far, the long-awaited rate drop has only really benefitted variable-rate mortgage holders, who are now seeing some relief on their monthly mortgage payments.”

Overall housing inventory has increased recently, but not enough to keep up with current demand Attached and row homes are popular among prospective buyers who lack the financing necessary to upgrade to single-family homes and first-time homebuyers. One month worth of supply has been consistently available for all property types, according to Lyall.

She noted the new supply continues to comprise townhomes and condos as developers prefer to build multi-unit properties on single lots, boosting density and much needed supply.

“In the months ahead, we should see a gradual slowdown as consumers take a break for the summer, before activity picks up in the fall again,” said Lyall. “The late third quarter and fourth quarter of this year could be particularly strong for sales if interest rates continue to decline.

“My hope, however, is that rate cuts will roll out gradually so that supply levels have enough time to be replenished ahead of rising buyer demand.”

Royal LePage is forecasting that the median price of a Calgary home will rise 8% year-over-year in the fourth quarter of 2024.

Photo: Royal LePage