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Q3 -2021 Calgary & Region Housing Report

Posted on October 19, 2021 by Steven Hill

CREB^®’s Q3 2021 Housing Report released

City of Calgary, Oct. 19, 2021 –

For the full report, please download CREB^®'s Q3 2021 Calgary & Region Quarterly Update Report here.

The pace of growth and level of sales have eased from the record highs seen in the second quarter, but with 6,628 sales, this was the best third quarter since 2014.

Much of the strength in demand was likely driven by the low-lending-rate environment and increased savings among those whose incomes were not impacted by COVID-19 shutdowns.

"Sales have slowed from the record pace seen earlier this year, but some of this slowdown was likely related to limited improvements on the supply side of the market," said CREB^® Chief Economist Ann-Marie Lurie.

"Supply-demand balances improved for buyers compared to what we saw in the spring, but the market continued to favour the seller in the third quarter".

The number of new listings coming onto the market has increased compared to last year. However, the quarterly decline in new listings outpaced the pullback in sales, causing supply levels to trend down in the quarter and remain lower than last year's levels.

"Persistently tight conditions have supported price gains in the market, with new record highs set in both the detached and semi-detached sectors," said Lurie.

"However, with fewer supply challenges facing the apartment sector of the market, price gains there have not been enough to erase the declines recorded over the past six years."

In Calgary, the residential benchmark price rose by one per cent compared with the previous quarter and sits over nine per cent higher than prices recorded in the third quarter of last year.

Meanwhile, many of the areas outside of Calgary city limits have seen exceptionally strong sales and supply that has not kept pace with demand. For many of these areas, lack of supply has contributed to steeper price gains than what has been seen in the city, narrowing the price gap between the two.

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September 2021 Calgary Real Estate Market Update

Posted on October 12, 2021 by Steven Hill

City of Calgary, October 1, 2021 –

Residential sales totalled 2,162 in September, nearing the record high for the month recorded in 2005. Further gains in new listings likely supported some of the sales growth that occurred this month.

“While sales activity in the fall tends to be slower than in the spring months, the continued strong sales are likely being driven by consumers who were unable to transact earlier in the year when supply levels had not yet adjusted to demand,” said CREB® chief economist Ann-Marie Lurie. “The market continues to favour the seller, but conditions are not as tight as they were earlier this year.”

Inventory levels in September eased to 5,607 units, keeping the months of supply below three months. However, there is significant variation depending on property type and the tightest conditions continue to be in the detached market, with under two months of supply. At the same time, the apartment condominium sector is not facing the same level of supply challenges, with nearly five months of inventory available based on current demand levels.

Supply adjustments have helped ease the upward pressure on home prices. Prices have eased slightly relative to a few months ago, but they remain well above levels recorded earlier in the year. As of September, the total residential benchmark price in Calgary was $457,900, over eight per cent higher than levels recorded last year.

HOUSING MARKET FACTS

Detached

Calgary recorded 1,268 sales this month, a significant gain relative to last year and 30 per cent higher than longer-term trends. Sales this month improved across all price ranges except homes priced under $400,000. However, the decline in sales in the lower price range is likely related to limited supply choice.

On a year-to-date basis, prices have improved across all districts, with gains that range from a low of five per cent in the City Centre to nearly twelve per cent in the South East. The City Centre is the only district where prices remain below previous highs. The September detached benchmark price of $537,500 has trended down slightly from the record high set in July, but this has not erased earlier gains, as it remains nearly 10 per cent higher than last year.

Semi-Detached

With less supply choice in the lower price ranges of the detached market, many consumers have turned to the semi-detached sector. With 2,005 sales so far this year, year-to-date sales are over 45 per cent higher than long-term trends and have reached new record highs. The improvement in sales was, in part, related to the improvements in new listings. The sales-to-new-listings ratio in this sector has averaged below 70 per cent over the past several months. This is nowhere near as tight as the detached sector, which has averaged 80 per cent.

While conditions have not been as tight in the semi-detached sector, there have still been substantial price gains this year. As of September, the benchmark price was $424,900, slightly lower than last month, but over eight per cent higher than last year’s levels. Like the detached sector, the semi-detached sector’s slowest price growth has occurred in the City Centre. On a year-to-date basis, prices remained below previous highs in the City Centre, North East and South districts.

CLICK HERE FOR FULL REPORT

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2021 Top-Tier Real Estate Fall Forecast

Posted on October 5, 2021 by Steven Hill

Following record-shattering sales across major markets through the first half of 2021, Canada’s metropolitan luxury real estate markets continue to reflect unprecedented circumstances leading into fall 2021. With an unsatiated undercurrent of demand across every major market and a new wave of prospective real estate consumers imminent, rising prices and steady activity are forecasted for fall.

Key Influences

Severe inventory deficit sparks price gains, undermines potential sales
Return to city living ignites urban sales and condominium demand
Job gains bolster top-tier real estate sales
Gap between luxury and conventional housing trends widen

Calgary’s luxury residential real estate market, which had gained steady traction since the start of the year, evolved into a true seller’s market over the summer and is poised for more balanced market conditions this fall.

Vancouver’s luxury market is poised to see some relief from the extraordinary pace and price gains experienced over its prolonged seller’s market but continues to confront the challenges of the region’s chronic and significant deficit of conventional and high-end housing supply.

After a brief seasonal sales slowdown, Montreal’s market rebounded swiftly in early fall, pointing to a dynamic and active season ahead. In face of strong consumer demand, the city is set to face the twin challenges of a significant provincial deficit of conventional and luxury housing, and price acceleration in turn.

Greater Toronto Area (GTA) is positioned to see continued price acceleration in an active fall market, even as the region’s acute shortage of conventional and luxury housing supply caps overall activity. GTA’s luxury condominium market strengthened as confidence in urban living continues to rise.

READ THE FULL REPORT HERE

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Discover the “Future Issue,” How Culture and Real Estate are Adapting After a Wave of Change

Posted on September 27, 2021 by Steven Hill

In the past year, we have witnessed a wave of change that has engulfed every aspect of everyday life, accelerating technology, business, culture, society – and real estate. In our latest issue of Insight: The Art of Living magazine, we invite you to explore some of these trends and changes in a futuristic era that has now arrived.

Learn how four major urban real estate markets weathered the pandemic storm, and how the popularity of multi-generational homes and family-friendly communities have risen in a year that has been about bringing everyone and everything into your immediate orbit.

From luxurious cabins to stylish urban townhomes, you’ll also discover how the long-promised future of prefabricated buildings is finally here. Enterprising architects and designers are finding ways to use prefab’s advantages in a variety of settings.

Explore some of Canada and the world’s most appealing travel and vacation home destinations, including Prince Edward County’s newest simple and stylish waterfront retreat, Wander the Resort. The property taps into the nostalgia of family vacations, camping with your family, or renting a cabin on the water. It is also the only Canadian property to make the 2021 Hot List at Condé Nast Traveler.

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August 2021 | Calgary Real Estate Market

Posted on September 1, 2021 by Steven Hill

City of Calgary, September 1, 2021 –

Citywide sales in August reached 2,151 units, 37 per cent higher than last year and 25 per cent higher than long-term trends. Sales have slowed from the record-setting pace seen earlier this year, but on a year-to-date basis, the eight-month total of 19,516 sales is higher than annual sales figures recorded over the past six years.

“Sales have far exceeded expectations throughout most of the pandemic, driven mostly by demand for detached homes. At the same time, supply could not keep pace and conditions shifted to favour the seller, something that has not happened in over six years,” said CREB® Chief Economist Ann-Marie Lurie.

“With more buyers than sellers, prices rose, providing opportunity for many of the move-up buyers in the market. Over the past several months we have seen some adjustments in supply relative to sales, helping move us toward more balanced conditions.”

The months of supply in August was nearly three months. This is an improvement relative to earlier in the year, but conditions generally remain far tighter than typical August levels. However, some improvements in supply compared to sales have been slowing price growth.

As of August, the total residential benchmark price was $459,600, slightly lower than last month, but over nine per cent higher than levels recorded last year. The price gains have ranged by product type, with the highest gains occurring in the detached sector of the market.

HOUSING MARKET FACTS

Detached

Supported by gains in every district, August sales totalled 1,300 units, which is 31 per cent higher than levels recorded last year and well above long-term averages. New listings have also improved relative to last year, but it has not been enough to cause any substantial change in inventory levels, which fell to 2,770 units this month. The months of supply remained just above two months in August. This is well below traditional levels for this time of year, but not as tight as levels recorded earlier in the year.

Following several months of strong price gains, August prices remained relatively stable compared with July figures, but were more than 10 per cent higher than levels recorded last year. Price gains continue to vary significantly based on location. Prices have risen across all districts relative to last year, but prices trended down In the City Centre, North West, West and South districts compared to last month.

Semi-Detached

Further year-over-year sales gains in August contributed to a record-high year-to-date sales total of 1,797 units, more than 70 per cent higher than last year. Sales have improved across all districts in the city, but the largest gains occurred in the West, North West and City Centre.

While inventory levels have trended down over the past few months, so too has sales activity. The months of supply rose above three months in August for the first time since October of last year. Any shift toward more balanced conditions will help ease some of the upward pressure on prices.

As of August, the semi-detached benchmark price was $430,000, nearly 10 per cent higher than last year, but only slightly higher than last month. Despite strong price gains across all districts, prices still have not recovered from previous highs in the South, North East and City Centre districts.

CLICK HERE FOR THE FULL REPORT

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July 2021 | Calgary Real Estate Market

Posted on August 1, 2021 by Steven Hill

City of Calgary, August 3, 2021 –

July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.

With 6,678 units in inventory in July, the months of supply rose to just under three months. These gains are leading to far more balance between sellers and buyers. However, there is a significant variation between product type, as the months of supply ranged from two months in the detached sector to nearly six months in the apartment condominium sector.

“Over the past several months, we have seen housing market conditions trend toward more balanced conditions,” said CREB® Chief Economist Ann-Marie Lurie. “This eased some of the upward pressure on prices, as prices are starting to stabilize following steep gains that occurred in the first half of the year.”

Benchmark prices in the city reached $460,100, slightly higher than last month and nearly 10 per cent higher than last July. Price growth has been the highest in the detached sector, which currently sits 11 per cent above last year’s price and has finally recovered from previous highs in 2014.

HOUSING MARKET FACTS

Detached

Both sales and new listings trended lower relative to last month, but remained higher than last year’s levels. Sales are still at record levels, but with only 1,822 new listings coming onto the market in July, the sales-to-new-listings ratio remained relatively high at 78 per cent.

Slower sales relative to the inventory levels also caused the months of supply to trend up. With just over two months of supply conditions remain relatively tight. However, this is an improvement relative to the past five months. Activity also varies by price range, with homes priced below $500,000 still facing tight market conditions with less than two months of supply.

Prices continued to trend up this month over last month. At a city-wide benchmark price of $539,900, prices are 11 per cent higher then last year’s levels. Prices have been on the rise in every district, but it is only the City Centre that is reporting prices below the 2014 high.

Semi-Detached

While sales activity did slow in some districts compared to last year, overall year-to-date levels remain at historic highs. While new listings are higher than last year’s levels, they trended down enough compared to last month to cause a slight monthly decline in inventory levels. With 209 sales and 577 units in inventory, the months of supply rose to nearly three months. This is still lower than levels recorded last year, but much higher than the extremely tight conditions recorded over the first half of the year.

Benchmark prices continue to rise over last month, but like other property types, at a slower pace. Nonetheless, at a benchmark price of $428,400 in July, levels are nearly ten per cent higher than last year and have recovered from previous highs. While price gains have occurred across most districts, on a year-to-date basis, they have not yet fully recovered from previous highs in the City Centre, North East, South and East districts.

CLICK HERE FOR THE FULL REPORT

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Q2 2021 Housing Report Released

Posted on July 29, 2021 by Steven Hill

City of Calgary, July 29, 2021 –

Within the city of Calgary, sales totalled 15,050 units after the first half of the year, the highest levels seen in more than a decade.

“While pent-up demand and low interest rates were expected to support sales growth in 2021, the strength in housing demand has surprised many, especially given the amount of job loss that occurred due to the pandemic,” said CREB® chief economist Ann-Marie Lurie.

“With some of that pent-up demand now filled, sales are expected to remain strong as we move through the second half of the year, but they should slow to levels more consistent with longer-term trends.”

Sales are expected to exceed 24,000 units on an annual basis, making 2021 the best year of sales since 2014.

Over the first half of the year, supply gains have not kept pace with demand, resulting in sellers’ market conditions and strong price gains. This is especially true in the detached sector, where benchmark home prices went from $492,000 in January to $537,200 in June. Prices in some segments of the market have finally recovered to 2014 highs.

“Recent price gains have also encouraged more sellers to list their homes, helping alleviate some of the tightest conditions experienced throughout March and April,” said Lurie. “The gains in supply are expected to continue in the second half of the year, eventually supporting more balanced conditions and easing the upward pressure on prices.”

The pace of price growth is expected to slow, but thanks to the gains in the first half of the year, prices are still expected to rise by more than eight per cent on an annual basis in 2021.

CLICK HERE FOR THE FULL REPORT

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2021 Mid Year Top Tier Report | Sotheby's International Realty Canada

Posted on July 14, 2021 by Steven Hill

Renewed confidence in Canada’s post-pandemic return and economic recovery bolstered gains across the country’s major metropolitan luxury real estate markets through the first half of 2021. As the Bank of Canada reported first-quarter GDP growth at a “robust” 5.6%, the Conference Board of Canada projected a 6.1% expansion of real GDP in 2021, with solid economic recovery expected across every province. Resulting confidence, housing demand and eroding luxury real estate inventory were captured in new data compiled by Sotheby’s International Realty Canada that reflect record-breaking levels of activity and prices across the country’s major luxury markets through the first half of the year.

“The pandemic era reinforced the importance of ‘home’ and ‘space’ to a degree that has never been experienced; we expect this to have a lasting impact across many facets of the Canadian luxury real estate market,” says Don Kottick, President and CEO of Sotheby’s International Realty Canada. “Perhaps most profoundly, there has been a major shift in the psychology of luxury real estate consumers and homeowners. The new reality is that as the perceived value of living space has increased, affluent buyers’ ‘willingness to pay’ for luxury real estate has increased exponentially. Affluent consumers are more prepared to invest in additional space and in next-level architecture and design, whether through upsizing, home renovations or home building. This is elevating the quality and pricing of housing in Canada’s most prestigious neighbourhoods, in many cases, permanently.”

According to Kottick, the impact of pandemic luxury market influences previously reported in Sotheby’s International Realty Canada’s 2021 Spring Outlook will continue to cascade across the country’s real estate market in the coming months. Strengthening confidence in a Canadian economic recovery, the anticipated reopening of provincial and national borders to travel and immigration, as well as the continued access to low-cost borrowing and stores of cash savings will empower multiple waves of local and international luxury real estate consumers into the latter half of 2021, driving luxury sales.

CLICK FOR FULL REPORT

MARKET HIGHLIGHTS *

Calgary

Luxury real estate activity in Calgary renewed in the first half of 2021 as business, real estate industry and consumer sentiment took on a cautiously optimistic tone with gains in oil and gas prices, and broader vaccine coverage. The $1 million-plus residential real estate market transitioned to more balanced market conditions as sales rose 236% year-over-year from the levels seen in the first half of 2020, albeit unevenly across housing types. While activity recovered across the city’s single-family and attached home markets, with healthy 230% and 338% year-over-year sales gains respectively, condominium sales over $1 million continued to comprise a nominal percentage of the luxury market despite an uptick of 350% to nine units sold in the first half of 2021.

Greater Toronto Area (GTA)

Activity in the Greater Toronto Area (Durham, Halton, Peel, Toronto and York) luxury residential real estate market eclipsed the superlative performance of other Canadian markets in the first half of 2021, as sales over $4 million (condominiums, attached and single-family homes) soared 276% year-over-year. Of these,15 ultra-luxury properties sold over $10 million, an increase of 114%, from the first half of 2020. Significant gains were experienced across all luxury housing types, with sales over $4 million for condominiums, attached and single-family homes up 88%, 400% and 290% year-over-year, respectively. Overall, $1 million-plus residential sales surged 217% year-over-year in a market that heavily favoured sellers and fatigued buyers.

Vancouver

The tempo of Vancouver’s luxury market also accelerated to a frenetic pace in the first half of 2021, as residential sales over $4 million and $10 million surged 152% and 300% year-over-year, respectively. As in the case of Toronto and Montreal, the performance of the city’s luxury condominium market overcame its initial pandemic stall, with $4 million-plus sales regaining momentum over the spring to achieve a 138% year-over-year gain by the first half of 2021. Meanwhile, $4 million-plus single-family home and attached home sales climbed 152% and 300%, respectively. By mid-year, residential real estate sales over $1 million were up 107% from 2020 levels.

Montreal

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June 2021 Calgary Real Estate Market

Posted on July 2, 2021 by Steven Hill

Supply trends up but market still favours the seller

City of Calgary, July 2, 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 totalled 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 per cent. While the pace of growth is slowing, as of June, the benchmark price was 11 per cent higher than levels recorded last year.

HOUSING MARKET FACTS

Detached

Despite some modest improvements in inventory levels, strong sales in June have kept the detached sector of the market firmly in sellers’ market conditions.

With a sales-to-new-listings ratio of 76 per cent and the months of supply below two months, benchmark home prices continue to rise. The unadjusted detached benchmark price totalled $537,200 in June, nearly one per cent higher than last month and 13 per cent higher than last year’s levels.

Despite the sellers’ market conditions in the detached sector, there is some variation depending on location. The districts with the strongest demand relative to supply are the North, North West, South, South East and East districts. Each of these districts has less than two months of supply in June, which is well below longer-term averages. The tightness in these areas has also resulted in the highest year-over-year price gains.

The City Centre has not experienced the same tight conditions as other districts and is the only district where detached prices have yet to recover from previous highs.

Semi-Detached

The pace of semi-detached sales growth is showing some signs of slowing, but year-to-date sales remain at record highs. New listings have also reached new highs so far this year. However, the growth in sales has outpaced the growth in new listings, preventing any significant shift in inventory levels.

With 592 units in inventory in June, levels have trended up from the start of the year. However, with the months of supply currently sitting at two-and-a-half months, conditions continue to favour the seller.

The persistent sellers’ market conditions have caused benchmark prices to trend up, reaching $427,000 in June. Gains have occurred across all districts so far this year, but the amount of growth has ranged from a low of less than five per cent to a high of nearly 10 per cent. Despite these gains, only the North, West and South East districts have seen prices recover to previous highs.

READ THE FULL REPORT HERE

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May 2021 | Calgary Real Estate Market

Posted on June 1, 2021 by Steven Hill

Inventory rises, but sellers' market conditions persist

City of Calgary, June 1, 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 per cent of all sales.

HOUSING MARKET FACTS

Detached

Seasonally adjusted figures show detached home sales trending down slightly from last month, but levels remained the best recorded for May.

Due to relatively strong new listings, inventories are trending up relative to both the previous month and the previous year. This caused the months of supply to increase to 1.7 months and reflects some easing of the extremely tight market conditions seen over the past several months. However, the detached market continues to favour the seller and prices continue to rise.

Detached home prices rose across each district, with the largest year-over-year gains occurring in the North, North West and South East districts.

The gains in prices have been supporting price recovery for detached homes. As of May, only the City Centre and North East districts have seen prices remain below previous highs.

Semi-Detached

Year-to-date sales totalled 1,169 units, which is the strongest five-month total on record for this product type. Despite some adjustments in new listings, the sales-to-new-listings ratio rose to nearly 75 per cent.

Overall, the months of supply remained below two months for semi-detached housing, supporting further price gains on a monthly and year-over-year basis.

Benchmark prices have seen double-digit price gains compared to last year's levels in all districts except the City Centre.

The highest gains have occurred in the South East, South and North districts. While the city total is showing a recovery in price based on monthly levels, there are several districts where prices continue to remain below their previous highs.

CLICK HERE FOR FULL REPORT

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Q3 -2021 Calgary & Region Housing Report

September 2021 Calgary Real Estate Market Update

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August 2021 | Calgary Real Estate Market

July 2021 | Calgary Real Estate Market

Q2 2021 Housing Report Released

2021 Mid Year Top Tier Report | Sotheby's International Realty Canada

June 2021 Calgary Real Estate Market

Supply trends up but market still favours the seller

May 2021 | Calgary Real Estate Market

Inventory rises, but sellers' market conditions persist

Latest Blog Posts

FEBRUARY 2025 HOUSING MARKET UPDATE

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The Bonus Room

Confession Time About This Blog

Market Updates

FEBRUARY 2025 HOUSING MARKET UPDATE

JANUARY 2025 HOUSING MARKET UPDATE

DECEMBER 2024 HOUSING MARKET UPDATE

NOVEMBER 2024 HOUSING MARKET UPDATE

Style & Design

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Supply trends up but market still favours the seller

Inventory rises, but sellers' market conditions persist

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