The real estate stats were released April 1st and it’s easy to think they were a joke. March finished with 2,903 home sales in Calgary, the most in March since 2007! The recent sales activity is supported by low lending rates and improved savings by consumers.
The media and economists are advising to be careful and predicting that the bubble will burst, however, they weren’t able to predict this real estate boom. Predictions are always just a guess and these predictions are based on one of the most unpredictable and volatile times that many of us have ever experienced. Of course, you should be cautious of the future, but what we can be sure of is the present. If you’re thinking about buying or selling, act now so there is no speculation involved.
New inventory has increased but the citywide months of supply fell below two months – the lowest level for March since 2014. These market conditions have been leading to price gains which will likely support further gains in new listings as sellers try to capitalize on the current conditions.
“Eventually, this will help support more balanced conditions, but it could take time before we see this shift in the market,” said CREB® chief economist Ann-Marie Lurie.
Detached homes have had increased activity across most price ranges and districts in the city. New listing improved but total inventory dropped to just over one month of supply. The citywide detached benchmark price rose by nearly eight percent compared to last year but this fluctuates greatly based on location.
Steady gains in semi-detached sales caused first-quarter sales totals to reach nearly record highs for this property type. Improving new listings was not enough to offset the sales and the months of supply fell below two months for the first time since 2014. Low supply levels relative to sales contributed to further gains in prices, which, as of March, were nearly six percent higher than last year’s levels.
Similarly, sales activity for row properties has also risen above long-term averages. This segment has taken longer to see tighter conditions, but the recent tightening is starting to have a more significant impact on price.
For the third month in a row, condo sales activity was stronger than the previous year. New listings also rose and are causing some inventory gains but, despite the inventory gains, sales have been far better than levels seen over the past six years.
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For the detailed market statistics from the Calgary Real Estate Board for March 2021 click HERE. Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn, or other areas in the Calgary region.