One figure in CREB®’s June 2023 report stands out for first-time detached buyers. Only 24% of detached homes for sale were priced below $600,000. A year earlier that share was 45%.
Share of detached inventory priced below $600,000, June
The details
- Detached inventory rose from May but was only 1,651 units, a record low for June.
- Inventory fell across most price ranges, with the steepest drops below $600,000.
- The detached benchmark price reached $685,100, up nearly 2% in a month and 6% in a year.
- The largest annual gains were in the North East and East, the city’s most affordable districts.
Why it matters
The entry level of the detached market is shrinking from two sides: fewer listings and rising prices that push homes above the $600,000 line. Buyers who want a detached home on a tighter budget are competing for a much smaller pool.
What it means: widen the search. A semi-detached or row home, or a nearby town, can offer more choice at the same price.
How quickly the lower end has thinned out
A year ago, almost half of the detached homes for sale in Calgary were priced below $600,000. In June 2023, fewer than one in four were. The number of homes for sale overall rose from May thanks to more new listings, but the increase came mostly at higher prices. Inventory declined across most price ranges compared with last year, and the steepest declines were for homes priced below $600,000.
Why it is happening
Two forces work together. First, prices have risen: the detached benchmark is up 6% in a year and nearly 2% in a month, so homes that would have been listed at $580,000 last year may now be listed above $600,000. Second, fewer owners of entry-level homes are selling. Many are not moving up because higher rates make a bigger mortgage expensive, and some first-time buyers who would have bought a starter detached home are competing for the same small pool.
Where prices are rising fastest
Annual detached price gains were highest in the most affordable districts, the North East and East. That is the pattern you would expect when buyers with limited budgets compete for the cheapest homes. In June, the semi-detached benchmark reached $613,100 and the row benchmark $400,000, so for many families a semi-detached or row home is the realistic alternative.
Compared with earlier in the year
In its March report, released in early April, CREB said that nearly 63% of detached new listings so far this year were priced over $600,000, up from 48% a year earlier. By June, the effect shows up clearly in inventory: only 24% of what is available is under that threshold.
What buyers can do
- Widen the search: older communities, homes with dated kitchens or bathrooms, and homes on busier streets are more often found under $600,000.
- Consider a semi-detached home: it often offers similar space and a yard at a lower price.
- Look at the towns: Airdrie’s total benchmark was $511,100 in June, although detached prices there are also at records.
- Be ready: with so few listings, a pre-approval and a quick decision often make the difference.
What sellers should know
If you own a detached home that would list below $600,000, you are in the scarcest part of the market. That does not mean any price will work, but it does mean well-presented homes in this range should attract strong interest.
Will new construction help?
CREB’s chief economist said in the same release that new home starts are rising but will take time to affect supply. Homes started this year will mostly reach the market in 2024 or later. For now, the shortage under $600,000 is likely to continue through the summer.
