Due to an increase in new listings, the first quarter of 2022 saw record high sales activity.
In comparison to the previous quarter, when sales outnumbered new listings, this gave buyers more options. Although the number of new listings increased, it was insufficient to add significant supply to the market. Inventory levels fell by 30% in the fourth quarter of 2021, compared to long-term trends, resulting in the lowest quarterly inventory level since 2014. "In the first quarter, record sales combined with low inventory levels resulted in months of supply averaging just over one month," said CREB® Chief Economist Ann-Marie Lurie.
"We haven't seen conditions this tight since 2006, which was also the last time we saw price increases of more than 15%." In the first quarter of 2022, the persistent sellers' market conditions weighed on prices. The total residential benchmark price averaged $496,767, owing to strong gains in the detached sector of the market.
This represents a nearly 8% quarterly increase and a nearly 15% year-over-year increase. While strong sales were expected in the first quarter, demand continued to outperform forecasts. "Expectations of rising rates and further price increases are likely to push consumers into the market as soon as possible," Lurie said. "However, a lack of choice in recent quarters has created a demand spike that can only be met as supply levels improve." While the economy will continue to support housing demand, the rate of sales is expected to slow later this year.
This will eventually aid the market's transition to more balanced conditions, reducing price pressure.
Here is your Calgary Real Estate Market Update for the month of March.
As a result of the increase in new listings, adjusted inventories have risen above last month's levels. The market, however, continues to favour the seller with only one month's supply. February saw 3305 sales, in total.
"Sales have been limited due to a shortage of supply options in the market." While sellers responded with a record number of new listings this month, demand has been so strong that the housing market remains undersupplied, triggering further price increases," said Ann-Marie Lurie, CREB® Chief Economist.
The city's overall residential benchmark price increased by nearly 6% from January to February, and was over 16% higher than February of last year. The detached portion of the market, which has not seen conditions this tight in over 15 years, has fueled much of the expansion.
This is the fourth month in a row that the market has faced conditions that are significantly tighter than those saw in the city last spring. While the increase in new listings will provide buyers additional options and eventually promote more balanced market conditions, it will take time to work through the demand.
Detached, Single Family Homes (Calgary)
The detached sector's months of supply has stayed below one month for the third month in a row. Prices have been under severe increasing pressure due to a lack of supply and persistently high demand. The benchmark price in February was $596,400, about $50,000 higher than prices at the end of 2021 and nearly $90,000 higher than prices in February 2021. Every district of the city has seen price increases, with year-over-year increases exceeding 20% in the North, South, and South East regions.
Sales growth has been strongest in the $600,000 to $1,000,000 price bracket after the first two months of the year, as this is where the most new listings have been added. Overall, conditions are still extremely tight across the board, with less than a month's supply for all houses priced under $1,000,000 in the first two months of the year.
Semi-Detached (Calgary)
The record number of new listings in February were matched by record-breaking February sales, adding to the pressure in this market segment. The months of supply fell to one, something that hasn't happened since February 2006.
Prices were pushed even higher by the continuing and unusually tight conditions. The semi-detached unadjusted benchmark price reached $461,400 in February, approximately 5% higher than previous month and 16% higher than February 2021 levels, thanks to advances in every district.
Row Houses (Calgary)
Many clients were drawn to row style residences due to a lack of supply in other property types. However, after several months of high sales compared to new listings, inventory levels have trended lower than we've seen in the past at this time of year. For the first time since early 2007, the months of supply dipped below one month in February, with 537 sales and 535 units in inventory.
The prolonged sellers' market conditions resulted in significant monthly price increases in most of the city's districts. The most significant month-to-month growth happened at the city's north east, north, and west ends. Despite recent gains, prices in all districts, with the exception of the West, remain below prior highs.
Condominium/Condos (Calgary)
After lagging behind other property categories, sales in the apartment condominium sector soared this month, setting new highs for the month. New listings improved as well, but did not have a substantial impact on inventory levels. The months of supply in the apartment condo sector fell below two months for the first time since 2007.
This month, pricing pressure has been supported by recent tightness. However, price increases are far lower than for other property kinds, and prices are still over 14% below prior highs. While this area of the market has not faced the same supply constraints as other property types, if supply constraints persist, we may see more significant price recovery.
Airdrie
In February, there were a record number of new listings, resulting in a record number of transactions. With 385 new listings and 289 transactions, the sales-to-new-listings ratio fell to 75%, the lowest it's been since spring of last year. While recent advances have resulted in a monthly increase in inventory levels, supply remains extremely low, with months of supply remaining below one month for the fourth month in a row.
The market has seen significant price growth due to persistently tight market circumstances, particularly in the detached and semi-detached sectors. The unadjusted detached price in February was $490,800, up roughly 6% from the previous month and 22% higher than last year's values.
Cochrane
In February, the number of new listings hit a monthly high. Sales, on the other hand, virtually matched the number of new listings, forcing inventories to drop even further and months of supply to collapse to the lowest levels ever recorded, at less than half of a month's supply. The months of supply have been below one month for the fourth month in a row, and the sellers' market conditions are putting significant upward pressure on prices, particularly for detached and semi-detached properties.
The unadjusted detached benchmark price in February was $548,400, about 7% higher than the previous month and over 21% more than the previous February. All property types have seen price increases, but apartment-style properties have continued to record prices below their 2007 highs.
Okotoks
Gains in new listings, like in other markets, aided sales in February to reach new highs. However, the increase in new listings was insufficient to make a significant difference in the low inventory scenario. With only 56 pieces in stock at the end of the month, February's inventory is the lowest it's been since 2006. Strong sales paired with low inventory prompted the months of supply to go even lower, to less than one month for the third month in a row.
Prices rose as a result of the market's continued tightness. The benchmark price for a detached home in February was $554,900, over 8% higher than last month and nearly 15% more than last February.
Browsing homes today? Check out a video tour of our latest listing in Cougar Ridge!
Here is our mid-February market update on pricing and inventory in these Calgary bedroom communities!
Airdrie
Despite chronically low inventory levels, sales activity in January reached near-record levels. The increase in sales was made possible by a higher number of new listings in January compared to previous months. With less than one month's supply, the market continues under strong sellers' market conditions, owing to chronically low inventory levels. Prices are continuing to rise due to persistently tight market circumstances. The total residential benchmark price increased by roughly 3% to $408,900 in January over the previous month.
Cochrane
In January, sales in Cochrane reached new highs. The increase was fueled by an increase in new listings compared to what was available in the last months of 2021. The monthly increases in new listings helped to keep inventory levels consistent, but with only 62 units available in inventory, inventory levels are nearly 70% lower than what we've seen in the past. Strong sales and low inventory levels pushed Cochrane's months of supply below one month, which was the lowest ever for January. Prices are continuing to rise due to the tight market conditions. The median price of a detached home increased to $512,900 in January. The monthly growth was not as high as what was witnessed in some other regional markets due to substantial monthly advances at the end of last year.
Okotoks
Despite chronically low inventory levels, sales activity in Okotoks remained rather high. In January, inventories stood at 38 units, the lowest level ever for the month and 76% lower than long-term averages. The months of supply remained extremely tight at under one month this month, with 43 sales and 38 units in inventory. Conditions in Okotoks haven't been this tight since 2006, putting increased pressure on prices. The detached benchmark price increased to $515,100 in January, a considerable gain over the previous month and almost 8% higher than the previous year.
Stay tuned for information on more satellite communities!
A walkable neighborhood is one where you can get in and out of the neighborhood without a car. In Alpine Park, Calgary, this master planned community has access to Sidewalks, restaurants, and the neighborhood is designed to make minimal use of car except for long trips or commutes.
Map the route to your workplace in public transit mode. Look on Google Maps to get a sense of how many everyday amenities are within walking distance. The more restaurants nearby, the more your neighbors will likely be out and about, too. This may give you a feel for the overall vibe of the community. Always spend some time walking around and exploring an area before making a move there!
Check out the neighborhood at different times of day to see what's open and active during the times you'd walk there.
Check out the area on evenings and weekends, and in the middle of a weekday. Remember that you can always prospect communities you are interested in even if there are no houses available to purchase on the market currently.
Pay close attention to how the streets and crosswalks are designed. Look for signals with buttons for walkers to push and wide, well-marked crosswalks. Was the space designed to be pedestrian friendly? Remember that even if amenities are nearby, if the community is not master planned with walkability in mind, things like a major road or large warehouse store parking lots may put a damper on your desire to walk to errands. Sirocco at Pine Creek is another example of a newer community where the developers have made sure that major walkways and amenities are user-friendly and inclusive to all e.g., those with mobility scooters or various disabilities.
While inner city neighborhoods are great for walkability, similar lifestyles can be found in thoughtfully master planned suburban communities.
When you're in the neighborhood, search Google Maps for "restaurants near me" or "coffee near me". Take some exploratory walks to the places you'd be likely to visit. If it feels right to you, it just might be the right place to call home.
One great aspect of Calgary is its diverse array of wonderful communities that you could build your own infill. Today we have the top five great communities to build your next semi-detached or detached infill home.
Building a new home in an established neighborhood definitely has its perks. We have seen many creative uses of space, such as multigenerational families living on separate houses on the same lot, investing in a lot and using one half for a rental, and beyond.
The first area we need to take note of is Altadore or South Calgary.
These neighborhoods are established. Home builders have been densifying and reshaping this area for many years. The hustle and bustle of shopping, you will enjoy nearby Marda Loop, one of Calgary’s best shopping districts. The feeling of inner city with a little space between you and downtown means you won’t feel like you’re missing out on events, parties, bars, nightlife and a great metropolitan energy, but you can still have easy access to parks and greenspace.
Like Altadore, Killarney, another great example of a neighborhood that is transforming from a quaint single-family community to one full of modern condos, rowhouses and infills.
A little further from Downtown, Killarney enjoys the luxury of a nearby C-train station, easier river access and a little more distance from the busy urban core. Shopping on popular 17th Ave is just minutes away and you can easily get out of the city with convenient access to Bow Trail.
Sunnyside/Hillhurst is one of Calgary’s most desired inner-city communities.
It is still possible to find lots here. You will find this is one of the more developed infill communities. Take a walk through one of its many busy streets to see examples of beautiful new developments; the possibilities are endless. This community is centered around its famous shopping and dining experience and is located directly beside the downtown core.
Mount Pleasant is our next choice, located just North of 16th Ave Northwest.
Here you'll find that there's a little bit of elbow room. It's a little bit quieter of the location. There is no shortage of dining, bars, and easy access to Market Mall, the University of Calgary, hospitals and more makes this an attractive central location, with all the benefits of a quieter family suburb. Mount Pleasant sports access to some amazing bike trails.
Our top recommended location to build a location this year, however, is located just East of Mount Pleasant, and that is the community of Renfrew.
Over the past 1-2 years, we have seen developers and homebuilders alike express interest in this hidden gem of a community. With many of the original homes (And likewise, 50-foot lots) still standing, this area will likely rapidly transform into a dense and bustling community like Altadore or Killarney within the future. Now is your chance to get into this community while many families and investors are focused on the aforementioned communities.
Even though it’s a bit quieter and out of the way, Renfrew is just minutes from Downtown. Many will have walking access to Bridgeland, one of the best dining and entertainment districts. With the river nearby, the Calgary Zoo, TELUS World of Science and more, Renfrew offers a compelling value that growing families should not ignore.
Our final neighborhood we need to mention is Crescent Heights.
Perhaps with the premiere panoramic view of Downtown Calgary, the Bow River and the mountains, if you are looking for a location to build your dream home in the heart of one of Calgary’s prestigious communities, look no further.
With easy access to every inner city and shopping amenity on the North side of the river, some of the most interesting green and park space to be found, Crescent Heights is quiet, safe, and could be your amazing dream retreat with views to match.
February Market Update: Strong Seller Conditions continues to impact Prices for Calgarians
In January, the benchmark price reached $472,300, an increase of over 2% month over month and 12% year over year. Inventory fell to 2,620 units, the lowest level since 2006. Months of supplies remained at an all-time low of 1.3 months for this time of year.
In January, the number of new listings increased to 1,295 units. Inventory levels, on the other hand, continued to fall with 1,148 sales. Detached inventory decreased to a new low of 895 units, while months of supply remained below one month for the second month in a running.
Changes in Calgary's Condo Market
Sales in January were at their highest level since 2007. There was more supply available in the condominium sector than in any other sector. This sector's unadjusted benchmark price of $251,200 is almost 2% more than last year. The months of supply have stayed stable at three months.
Airdrie
Sales activity in January reached near-record levels. With less than one month's supply, the market continues under strong sellers' market conditions. The benchmark price increased by roughly 3% to $408,900 in January over the previous month. Increase can be attributed to gains in both detached and semi-detached dwellings.
Cochrane
In January, sales in Cochrane reached new highs. The median price of a detached home increased to $512,900 in January. With only 62 units available in inventory, inventory levels are nearly 70% lower than what we've seen in the past. Prices are continuing to rise due to tight market conditions.
Okotoks
The detached benchmark price increased to $515,100 in January, almost 8% higher than the previous year. In January, inventory stood at 38 units, the lowest level ever for the month. The months of supply remained extremely tight at under one month this month.
Thinking 2022 is your time to move? We have prepared this seminar to answer YOUR questions!
Do you know somebody who is getting ready to sell their home? Are you wondering about the state of the market? This short seminar on creating a successful sale in Calgary's real estate market is a must watch!
Southwest Lifestyle at My Legacy Park: 1309 215 Legacy Boulevard SE
If you are in the market for a modern condo in Calgary’s Southwest, this could be your next home! Bright and open, with 9-foot ceilings and plenty of natural light throughout the space, this unit showcases the amazing SW Lifestyle available at Remongton’s My Legacy Park.
The unit features 2 bedrooms, 2 baths, and 2 named parking places. This property, which faces northwest, receives evening sun and has a private balcony that is covered. Suite #1309 is tucked away at the very end of the hall and features a large front entry as well as a generously sized closet.
The improved flooring package, which includes ceramic tile, easy-to-clean laminate flooring, and upgraded carpet, is instantly noticeable. Among the many features of the kitchen are quartz countertops, a large kitchen island with pot drawers and cupboards that reach to the ceiling, an upgraded stainless appliance package with a water and ice dispenser built into the refrigerator, an upgraded stove with induction oven, an upgraded microwave oven, quality dishwasher, garbage disposal, and striking red glass mini subway tile backsplash, as well as a touch faucet with a pull out hand wand that is super cool.
You'll find a front-loading washer and dryer that have been upgraded. The primary bedroom is huge, with a walk-through partner closet and an ensuite bathroom with quartz countertops and a large bathtub. The secondary bedroom is also spacious. The second large bedroom also has a large closet In-suite and has quick access to the full bath that also has quartz counter.
There is heated indoor titled parking with a storage locker, as well as a second titled outside parking space with storage locker. You don’t have to leave because everything is within walking distance, including shops and the Legacy walk trails. Located near the southern end of Calgary, the Legacy community is ideally located adjacent to the Bow River, the Macleod Trail, and the Stoney Trail ring road, among other amenities.
The majority of Canada is tilted in favour of sellers rather than buyers, which is expected to continue in 2022. But one major urban centre is not showing signs of overheating or overvaluation. This is excellent news for young families and first-time homebuyers eager to break into the market.
The Canadian Mortgage and Housing Corporation (CMHC) has rated the Calgary real estate market as "low-risk". The rating doesn't translate to tepid activity, in fact, this local market is flourishing. According to the Calgary Real Estate Board (CREB), residential sales rose to 2,186 units in October 2021, up 24 per cent year-over-year.
The average home price in Calgary is up almost nine per cent year-over-year to $460,100. Inventory is beginning to tighten, but not at market levels seen elsewhere in the country.
New housing construction has improved from 2020. Housing starts increased at an annualized rate of 27.8 per cent in October 2021, to 1,255. Year-to-date, housing starts in Calgary have topped 11,600, up from 7,443 in the first 10 months of 2021.
Sales over $1 million in Calgary were up 244% year-over-year, according to Sotheby's. Condos saw the most significant annual percentage gain of any luxury housing type. Young buyers and up-sizers are looking for top-tier homes at accessible prices.
Canada's luxury and conventional housing market will remain strong in 2021, according to the latest Canadian Real Estate Board (CREB) report. Low-interest rates, record cash savings and anxiety about the stock market will continue to drive demand for properties. Overseas buyers will flood into the market as travel restrictions gradually ease, CREB predicts.
The median price of a single-detached home in Calgary is expected to rise by six per cent to $689,000 in the fourth quarter of 2022. The city's downtown revitalization and infrastructure projects such as the Green Line LRT and Event Centre are helping drive the boost.
The median price of a single-detached home in the Greater Toronto Area is expected to spike by 11 per cent a year from now, to $1,564,200. In comparison, the median cost of a condominium in Calgary is forecast to rise by two per cent.
The Canadian inflation rate hit 4.7 per cent in November, the highest in nearly 19 years. The stay-at-home effect of the pandemic has made larger homes more desirable. You will need strategy and diligence in locating a new property in the current market, but it can be done. Consider new developments (These can be found both inner city and on the outskirts) or buying in the surrounding communities of Airdrie, Cochrane, Okotoks, and so on.
The median price of nearly $700,000 for detached homes is being skewed by a booming luxury market.
Calgary's unemployment rate is down to eight per cent, down from 8.9 per cent in October but still among the highest for major Canadian cities.
It is estimated currently that 30 per cent of prospective Calgary homebuyers are coming in from other municipalities.
Wondering about how to make your next move in 2022? Let us help you.
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
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