Calgary Real Estate Market Update

Supply levels improve, taking some pressure off prices

With the busy spring market behind us, we are starting to see some shifts in supply levels. With 2,380 sales and 3,604 new listings, the sales-to-new listings ratio fell to 66 per cent, supporting a gain in inventory. Inventories rose to 4,158 units, still 33 per cent below what we typically see in July, but the first time they have pushed above 4,000 units in nearly two years.

Although the majority of supply growth occurred for homes priced above $600,000, the rise has helped shift the market away from the extreme sellers’ market conditions experienced throughout the spring.

“While we are still dealing with supply challenges, especially for lower-priced homes, more options in both the new home and resale market have helped take some of the upward pressure off home prices this month,” said Ann-Marie Lurie, Chief Economist at CREB®. “This is in line with our expectations for the second half of the year, and should inventories continue to rise, we should start to see more balanced conditions and stability in home prices.”

July sales eased by 10 per cent over last year's record high but were still higher than long-term trends for the month. Like last month, the pullback in sales has been driven by homes priced below $600,000.

Nonetheless, the gain in inventory combined with slower sales caused the months of supply to rise to 1.8 months, still low enough to favour the seller but a significant improvement from the under one month reported earlier this year.

Improved supply helped slow the pace of monthly price growth for each property type. In July, the total residential benchmark price was $606,700, similar to last month and nearly eight per cent higher than last year's levels.

Upcoming Holidays

Did you know?

The Civic Holiday is commonly referred to as the August long weekend. It is probably the busiest day on highways as tens of thousands of families go camping, to cottages etc this weekend.

It is known by many names in different provinces and municipalities:

It's called Regatta Day in Newfoundland, Terry Fox Day in Manitoba, Saskatchewan Day in Saskatchewan, British Columbia Day in BC, Natal Day in Nova Scotia and PEI, Simcoe Day in Toronto, New Brunswick Day in New Brunswick, Colonel By Day in Ottawa, Heritage Day in Alberta, Joseph Brant Day in Burlington, ON and Benjamin Vaughan day in the City of Vaughan, Ontario.

Upcoming Events in Calgary

• Tour de Bowness Race and Street Festival - Aug 3

• Calgary International Blues Fest: Aug 1-4

• 2024 Rogers Charity Classic: Aug 14-18

• Summer Skirmish - Military Museums: Aug 17-18

• Western Canadian Reptile Expo and Tropical Plant Show: Aug 17-18

• YYC Fan Fair: Aug 10

• Calgary Dragon Boat Race and Festival: Aug 9-11

• Expo Latino Festival: Aug 16-18

• Fiesta Filipino: Aug 30

• Calgary Fringe Theatre Festival: Aug 2-10

• Marda Gras Street Festival: Aug 11

• Franco Festival Calgary: Aug 9-10

• Incredible India Fest: Aug 3

• Calgary Arab Festival: Aug 10-11

• Taste of Calgary: Aug 1-5

• BUMP Festival: Aug 3-18

• Calgary Japanese Festival: Aug 9-10

• Global Fest: Aug 15-24

• Cari Fest: Aug 16-18

• Country Thunder: Aug 16-18

YouTube Interviews

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Article of the Month

Heat Pumps vs. Air Conditioners: Understanding the Key Differences

When it comes to controlling indoor climate, homeowners often find themselves choosing between heat pumps and air conditioners. While both systems are designed to regulate temperature and provide comfort, they operate differently and offer distinct advantages. Here’s a breakdown of the key differences between heat pumps and air conditioners to help you decide which option is best for your home.

Functionality

Air Conditioners:

Air conditioners are designed solely for cooling indoor spaces. They work by extracting heat from the inside of a building and releasing it outside, thereby lowering the indoor temperature. This process involves the use of refrigerant, which absorbs heat and moves it outside. During the colder months, air conditioners are typically turned off or used minimally.

Heat Pumps:

Heat pumps are more versatile, offering both heating and cooling functions. In the summer, they work like air conditioners by removing heat from the indoor air. However, during the winter, heat pumps can reverse the process, drawing heat from the outside air (even in cold temperatures) and transferring it inside to warm the home. This dual functionality makes heat pumps a year-round solution for temperature control.

Energy Efficiency

Air Conditioners:

Air conditioners can be highly efficient, especially newer models with high SEER (Seasonal Energy Efficiency Ratio) ratings. However, since they are used only for cooling, their energy efficiency pertains solely to that function. For heating, a separate system like a furnace is usually needed, which can increase overall energy consumption.

Heat Pumps:

Heat pumps are known for their energy efficiency, particularly in moderate climates. They use less electricity than traditional heating systems like furnaces because they move heat rather than generate it. High-efficiency heat pumps with advanced technology can offer significant energy savings. However, their efficiency may decrease in extremely cold temperatures, where supplementary heating might be required.

Cost Considerations

Air Conditioners:

The initial cost of an air conditioner is generally lower than that of a heat pump, especially if you already have a separate heating system in place. However, if you need both heating and cooling solutions, the combined cost of an air conditioner and a separate heating system can be higher.

Heat Pumps:

While heat pumps typically have a higher upfront cost, they can save money in the long run by serving as both a heating and cooling system. Their energy efficiency also means lower utility bills over time. Additionally, many regions offer rebates or incentives for installing energy-efficient systems like heat pumps.

Climate Suitability

Air Conditioners:

Air conditioners are suitable for all climates but are particularly advantageous in areas with hot summers and mild winters. Since they do not provide heating, an additional system is required for colder weather.

Heat Pumps:

Heat pumps are ideal for regions with moderate climates, where temperatures do not often drop below freezing. In very cold areas, the efficiency of air-source heat pumps can decrease, making it necessary to use supplementary heating. Ground-source (or geothermal) heat pumps are more effective in extreme climates but come with higher installation costs.

Environmental Impact

Both air conditioners and heat pumps can be environmentally friendly, especially if they use eco-friendly refrigerants and are highly efficient. However, heat pumps generally have a smaller carbon footprint because they transfer heat rather than generate it, reducing the need for fossil fuels.

Conclusion

Choosing between a heat pump and an air conditioner depends on your climate, energy efficiency goals, and budget. If you need both heating and cooling, and you live in a moderate climate, a heat pump can be an excellent, energy-efficient choice. If cooling is your primary concern and you already have a reliable heating system, an air conditioner might be more cost-effective. Understanding the differences between these systems can help you make an informed decision that meets your comfort and financial needs.  

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