Price growth slows as supply to demand balance improves

City of Calgary, August 2021

Welcome to the second edition of TRANSITIONS Magazine!

This publication is all about the family dog! We have articles and quizzes to test your knowledge and help you to determine which breed of dog is best for you and your family. Of course you will also find links to trending real estate news and our newest column – “Ask Susanita”!

Enjoy!

Click on some of the highlights we have linked below.

Featured Articles:

Choosing a Family Dog
Getting Ready for Puppy

Most Recent Real Estate Market Reports:

Market continues shift toward more balanced conditions after torrid start to the year – August 2021 Real Estate Statistics Report

Price growth slows as supply to demand balance improves – July 2021 Real Estate Statistics Report

Supply trends up but market still favours the seller – June 2021 Statistics Report

Inventory rises, but sellers’ market conditions persist – May 2021 Statistics Report

Demand for homes remains high with record sales in April – April 2021 Statistics Report

Ask Susanita!

Why did the Calgary Real Estate Market go crazy in 2020 and 2021?

Where will Calgary home prices go next?

Is now a good time for new buyers to get into the Real Estate Market?

Does Calgary’s economy support a sustained housing market increase?

What do you need to know if you are in a competing Real Estate bid situation?

Watch for our Fall/Winter edition to be released soon!

If you or someone you know has any real estate questions, we’d love to help!

Contact us here: https://www.cbcompleterealestate.com/contact

OR

Phone: 403-686-1455

Email: info@cbcalgary.ca

Thanks for reading!

Supply trends up but market still favours the seller

City of Calgary, July 2021

Calgary’s housing market is showing few signs of letting up, as sales reached 2,915 units in June – a record high for the month.

“It is taking time for supply to catch up with the demand in the market,” said CREB® chief economist Ann-Marie Lurie.

“Through the early spring market, many buyers did not have a lot of choice, but the recent improvements in supply are providing more options for those purchasers and supporting the strong sales we continue to see in June. At the same time, gains in inventory are taking some pressure off the market as it starts to trend towards more balanced conditions.”

New listings in June totaled 4,135, the second-highest level ever recorded for the month. This caused inventories to trend up to 6,918 units. While this is higher than longer-term averages, it was balanced by strong sales and the months of supply remained relatively tight at 2.4 months. However, this is still an improvement from earlier in the year when the months of supply was below two.

As the market moves toward more balanced conditions, we are also starting to see the pace of price growth slow. The benchmark home price continued to trend up in June, but the monthly gain slowed to less than one percent. While the pace of growth is slowing, as of June, the benchmark price was 11 percent higher than levels recorded last year.

 
View the full report here: June Statistics Report
 

Inventory rises, but sellers’ market conditions persist

City of Calgary, May 2021

With 2,989 sales, housing market activity hit a new May record.

Despite strong levels of sales, they did trend down relative to last month. Additionally, there were 4,562 new listings, causing seasonally adjusted inventory levels to increase over last month.

“The recent gains in prices have encouraged more homeowners to list their homes and take advantage of the current market situation,” said CREB® chief economist Ann-Marie Lurie.

“However, the inventory gains are still not enough to offset the demand growth and the market continues to favour the seller. Prices are rising, but they are still recovering in our market from previous highs in 2014. Only detached and semi-detached home prices in certain districts and communities have recovered to the level of previous monthly highs.” The months of supply did trend up slightly this month to just over two months, but it was not enough to halt the upward pressure on prices. The unadjusted benchmark price in May reached $455,200. This is one per cent higher than last month and nearly 11 per cent higher than prices recorded last year.

Sales have been rising across all product types, but homes priced above $600,000 represent a larger-than-usual share of all sales. The upper end of the market only reflected 16 per cent of city sales last May, compared with this year where it now reflects nearly 26 percent of all sales.

View the full report here: May 2021 Report

Demand for homes remains high with record sales in April

City of Calgary, April 2021

There were 3,209 sales in April, a new record high for the month, as Calgary’s housing market continues to bounce back from the pandemic lows recorded in 2020.

“Despite entering the third wave of COVID-19, there is more optimism of economic recovery when the economy re-opens,” said CREB® chief economist Ann-Marie Lurie.

“However, the recent surge in home sales could be a result of potential buyers wanting to enter the market before any further changes occur in prices, interest rates and lending policy. This could erode some of their purchasing power.”

Recent price gains and tight market conditions have also encouraged many sellers to list their home this month. However, demand was strong enough to absorb the additional supply, ensuring the market continues to favour the seller.

With 4,670 new listings coming onto the market in April, inventory levels trended up relative to last month and last year. With the elevated sales, the months of supply remains below two months.

Persistently tight market conditions are causing significant upward pressure on prices. For the second consecutive month, the unadjusted benchmark price rose by more than two percent compared with the previous month and more than nine per cent compared with last year’s levels.

While sales improved across most price ranges, product priced above $600,000 represented 25 percent of the sales that occurred this month. This is a significant increase from last year when they only represented 12 per cent of sales. The shift in distribution is causing both the average and median prices to record double-digit year-over-year price gains.

View the full report here: April 2021 Monthly Statistics Report

Calgary housing market sees best March sales in over a decade

City of Calgary, April 2021

The initial impact of COVID-19 on the housing market began last March. One year later, it is not a surprise that March sales in 2021 were higher than in 2020. However, at 2,903 sales, this was the highest March total since 2007.

“Low lending rates and improved savings have supported sales activity,” said CREB® chief economist Ann-Marie Lurie. “However, sales have been somewhat restricted by the lack of listings. This month there was a jump in new listings, contributing to the strong monthly sales.”

Inventory levels pushed above 5,400 units, but citywide months of supply fell below two months. This reflects the lowest months of supply for March since 2014 and these tight conditions have contributed to price gains.

In March, the benchmark price trended up over last month to $441,900, over six per cent higher than last year’s levels. The price gains have moved the market closer to recovery, but prices remain over five per cent lower than 2014 highs.

“Improving prices will likely support further gains in new listings, as sellers try to capitalize on the recent shift toward rising prices,” said Lurie. “Eventually, this will help support more balanced conditions, but it could take time before we see this shift in the market.”

View the full report here: March 2021 Statistics Report

Sellers’ market in February leads to rising prices

City of Calgary, March 2021

With gains in every price range, residential sales activity in February totaled 1,836. This reflects the best February since 2014.

“Despite continued COVID-19 restrictions, housing activity continues to improve. Much of the strong sales activity is expected to be driven by exceptionally low mortgage rates,” said CREB® chief economist Ann-Marie Lurie.

“Confidence is also likely improving as vaccine rollouts are underway. Additionally, some of the worst fears concerning the energy sector are easing with recent gains in energy prices.”

New listings also improved in February, but the gap between new listings and sales narrowed. This is causing the sales-to-new-listings ratio to rise to 65 percent, keeping the months of supply well below three months.

Conditions are far tighter in the detached sector of the market, especially for product priced below $600,000, where strong sellers’ market conditions are present with less than two months of supply.

The market has faced relatively low inventory levels compared to sales for the past several months and prices continue to trend up. In February, the residential benchmark price rose over the previous month and currently sits four per cent above last years’ levels.

Detached product has the lowest months of supply and is also exhibiting the most significant gains in prices. On the opposite end of the spectrum, the apartment condominium segment still has a relatively high level of inventory compared to sales, which is impacting price recovery for this property type.

View the full report here: February 2021 Report

Welcome to the first edition of TRANSITIONS Magazine!

Our online magazine will be published 4 times per year, with each edition featuring special interest topics we hope you will enjoy.

For our Winter 2021 publication, we have lots of articles for you!

You can click the image below to scroll though the PDF version, or click on some of the highlights we have linked below.

Featured Articles:

Decorating a Tween’s Bedroom

Find and Create Your Perfect Home Office Space

January sales signal strong start to 2021 – January 2021 Real Estate Statistics Report

Video – Meet Susanita de Diego

Watch for our Spring/Summer editions to be released in the next few months!

If you or someone you know has any real estate questions, we’d love to help!

Contact us here: https://www.cbcompleterealestate.com/contact

OR

Phone: 403-686-1455

Email: info@cbcalgary.ca

Thanks for reading!

January sales signal strong start to 2021

City of Calgary, February 2021

Amidst economic challenges, housing market ends 2020 on a high note

City of Calgary, January 2021

With December sales of 1,199, this is the highest December total since 2007.