November goes on record as another month with strong sales. Since the initial shutdown, Calgary has experienced higher year-over-year sales for the past six months.
Covid has caused changes for a lot of people – good and bad. Many people need larger homes for home offices, growing families, or just more space. Others are downsizing due to financial situations, separations, or wanting a new space.
These factors paired with the record low-interest rate have created a perfect storm for high sales volume. With the rise in Covid numbers and Christmas quickly approaching new listings are down by nearly 10 percent (the lowest since 2001). This has finally brought the oversupply of inventory down to more balanced conditions.
Balanced conditions mean a little less selection for buyers and a little pressure to move quickly when they find the right home. Sellers, although it may not be convenient, it’s a great time to be on the market. The balanced conditions have stabilized and even increased benchmark prices over the previous year.
But remember, these stats are general and conditions vary based on price range and product type. The highest demand is for affordable homes in each sector so whether you’re a buyer or a seller, it is important to get advice and stats specific to your property, price range, and situation.
City of Calgary, December 1, 2020 – HOUSING MARKET FACTS
November sales activity improved across every district, contributing to a year-over-year citywide increase of 26 percent. Improving sales over the past six months have helped offset some of the pullbacks from earlier in the year, as year-to-date sales were only two percent lower than last year’s levels.
Like other sectors, inventory in the detached market has also eased due to the sharp decline in new listings. This has kept the months of supply below three months for the past three months. The tighter market conditions are supporting price gains. As of November, the detached benchmark price improved by nearly three percent compared to last year for a total of $492,000. However, prices did not improve across all districts, as the City Centre continues to record prices that are one percent lower than last year’s levels.
Activity for this product type does vary significantly depending on location and price range. The pullback in new listings relative to sales has caused significant reductions in inventory for homes priced below $500,000. Higher price ranges have also seen some declining inventory, but the degree of decline has not been as significant. In fact, the market is exhibiting sellers’ market conditions for homes priced below $500,000, while still favouring the buyer for homes priced above $700,000.
Year-over-year gains in sales were met with slower new listings, resulting in inventory reductions and a month of supply of three months. While conditions are not as tight in the semi-detached market as they are in the detached market, the reductions in supply relative to demand were enough to support further monthly gains in the benchmark price.
As of November, the benchmark price was $395,100, which is one percent higher than last year’s levels. Activity did vary depending on location, as price gains were the highest in the South East district, while prices remained just below last year’s levels in the City Centre.
There have also been notable differences within this market depending on price range. The months of supply has declined significantly for product priced below $400,000. This decline is likely contributing to some of the differing price trends throughout the districts of the city.
Year-over-year gains in the row sector continued in November and were enough to cause year-to-date sales to remain at levels similar to last year. Bucking the trend from other sectors, new listings rose compared to last year, easing some of the downward pressure on inventory levels. The months of supply stayed above four months, higher than levels seen in both the detached and semi-detached sectors, but a significant improvement from the nearly six months of supply recorded last November.
Row prices also showed signs of stabilizing, as November prices remained comparable to last year’s levels. Despite some of the monthly gains, on a year-to-date basis, prices remain nearly two percent lower than last year’s levels and have eased across all districts except the City Centre, West and East.
Following seven months of year-over-year declines, apartment condo sales improved over last year’s levels. However, last November was an exceptionally weak month for apartment sales. Year-to-date apartment sales totalled 2,209, a 13 percent decline from last year and nearly 30 percent lower than longer-term averages.
New listings did ease slightly this month, placing some downward pressure on inventory that was missing earlier in the year. However, inventory remains higher than last year’s levels and the months of supply are still elevated at nearly eight months. The oversupply in this market continues to place downward pressure on prices, which not only eased relative to last month but remain one percent lower than last year’s prices. The only district to see some positive momentum is the North, where prices rose slightly compared to last year.
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For the detailed market statistics from the Calgary Real Estate Board for November 2020 click HERE. Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.