Why Are There So Few Houses For Sale In Calgary?

The Shortage Of Calgary Houses For Sale Is Due To:

A Lack Of Inventory
For the last several years, since the beginning of the pandemic, there has been a lack of Calgary houses for sale. First, the pandemic slowed the production of new homes as construction companies were restricted to using far fewer workers for a pandemic-safe workplace environment. Then, once COVID-19 restrictions were eased, supply chain issues limited the number of homes being built. With both of these issues slightly reduced, we are just now seeing new houses for sale in the Calgary market. It was originally predicted that these homes would make the market more balanced, however, this has not been the case. Despite the increase of homes coming onto the market, they are being bought right away by waiting buyers. It appears that the supply-demand ratio has yet to level out and more homes need to come onto the market before we see a more balanced market develop.

Fewer New Houses For Sale Builds
As supply-chain issues and labour shortages continue, fewer new homes are being built. The price of lumber, steel, and engineered products has increased in the last several months, causing the price of new home construction to rise. This, combined with the labour shortage and continuing supply chain issues, is making it difficult for building companies to keep up with demand. Builders also have to continuously raise their prices to keep their profits the same, discouraging some people from building right now. Many builders have placed sales caps in place so they are not overselling capacity. The lack of homes being built and the rising cost of new-builds is causing more people to seek pre-owned homes, thus decreasing the supply of houses for sale.

Prices Compared To Other Major Cities
One of the major reasons so few Calgary houses are for sale right now is because other Canadian cities are reaching record-high prices that are driving residents of those cities to other major yet still affordable cities such as Calgary. While Calgary may seem like an intense seller’s market with seemingly high prices, it is nowhere near the prices of Vancouver and Toronto. Toronto homes are currently averaging $1.1 million and Vancouver’s home price average is $1.4 million. With cities like these reaching unaffordable prices for the average Canadian, many people are moving to other large cities where they are more able to afford a home without compromising their large city experience. Currently, most cities in Canada are seller’s markets, making the current Calgary seller’s market less of a deterrent. With so many markets in cities all over Canada pushing their prices up, Calgary offers more affordable housing despite the shortage of houses for sale.

Read more about the Calgary housing market and why homes are so desirable by reading Why Calgary Is A Great Place To Invest In Real Estate Right Now.

Find Calgary Houses For Sale

Finding houses for sale in the current Calgary seller’s market may seem impossible, but if you partner with an experienced team of Calgary Realtors®, you may be able to find a home. And if you are a seller, partnering with a skilled Calgary Realtor® can help you achieve a fast and profitable sale on your home. In the current seller’s market, homes are moving fast and both buyers and sellers need to operate with speed, efficiency, and knowledge in order to avoid failed offers. Whether you are looking to buy or to sell, the Mel Star team can help you get the best deal possible and navigate the Calgary real estate market. To partner with a skilled Calgary Realtor®, contact the Mel Star team at 1-403-861-9944 or fill out the online contact form.