The first six months of 2021 seemed to go by in a minute, the Viani Real Estate Group is honoured to be recognized as the 16th most productive RE/MAX real estate team worldwide, amongst over 100000 associates, for the first six months of 2021.

Led by our commercial specialist Rob Campbell along with Joe Viani the group was successful in brokering the sale of the iconic Ranchman's dance hall and cookhouse, multiple building trades, sales of land parcels, leases along with representing small business owners buy and sell. 

As the commercial real estate market remains strong we are excited to see what the latter half of 2021 brings.

We look forward to assisting you in the purchase, sale or lease of your property, discussing your investment opportunities or brokering the trade of your small business. 

Contact us today to find out how we can out or experience to work for you.

As the summer of 2021 drew to a close the Viani Real Estate Group was recognized as not only the second most productive team at RE/MAX Real Estate Central but the #71 most productive team by RE/MAX of Western Canada for the month of August.

RE/MAX of Western Canada encompasses all RE/MAX realtors licenced in British Columbia, Alberta, Saskatchewan and Manitoba, it is truly an honour to say we are recognized not only amongst our peers in the City of Calgary but a large portion of Canada.

The vast majority of our business comes from our repeat and referred clients, we hope being recognized as a top producing team speaks volumes for the service and guidance we give to our clients, thank you to all of our clients, we appreciate each of you.

Each member of the Viani Real Estate Group works hard daily to ensure our clients receive exemplary service, we pride ourselves on being competent, experienced full-time professional REALTORS®.

We love what we do and we want to help you with your next real estate transaction, be it residential, commercial, business brokerage or investment.

Take care and we look forward to speaking with you soon.

Earlier this year, CTV News profiled an Ottawa couple who bid $400,000 over the asking price and still lost out on the home of their dreams. This was not the first time that they were outbid on a residential property in the nation’s capital, resulting in “frustration and fatigue.” Like many others hoping to engage in the Canadian housing market, they were apprehensive about taking a break and sitting on the sidelines as they witnessed the Ottawa real estate market skyrocketing.

On the other side of the country, one homebuyer lost out on a bidding war that resulted in a $1.715 million detached home in Burnaby being sold. How much over the asking price? About $216,000.

This has been one of the main themes in Canadian real estate over the last 18 months. From Vancouver to Toronto to Atlantic Canada, many young families and first-time homebuyers have been routinely priced out of the market, even after placing higher bids on detached and semi-detached houses in a major urban centre or rural community.

The phrase “buyer fatigue” has become more common. This term applies to home hunters who have been repeatedly outbid and left disillusioned by the process, or can no longer afford to achieve the dream of homeownership. But could a Canadian housing market that potentially reached its peak this past spring be rejuvenated now that demand seems to be easing and prices are stabilizing? Real estate agents and market analysts have mixed opinions.

Buyer Fatigue Surfacing in Canadian Real Estate

According to Statistics Canada, real estate markets across Canada are showing “signs of moderating,” attributing the downward trend to “buyer fatigue,” despite the notable pent-up savings that were accumulated during the once-in-a-century global health crisis.

“The current market slowdown, partly due to buyer fatigue, has started to manifest in the housing market, with fewer buyers ready to engage in bidding wars,” the statistics agency wrote in its July 2021 report.

Moreover, the federal agency explained that, with public health restrictions being gradually lifted and “many workers return to offices,” the desire to acquire a residential property “could start subsiding.” And, despite the Canadian housing market reaching sales and price highs, indicators of moderation “have begun to appear over the past few months.”

Study authors appear to have based their conclusions on data from the Canadian Real Estate Association (CREA), noting that sales activity was 92 per cent down in all local markets on a month-over-month basis in June. CREA figures pointed to the deceleration of month-over-month growth in housing prices, rising just 0.9 per cent to finish the second quarter of 2021. On the supply front, new residential listings tumbled 0.7 per cent, marking the third consecutive monthly drop in new listings across the country.

“Further decreases in home prices may be observed in the fall if the number of sales continues to decrease faster than available listings,” the agency stated in its report. “Despite the month-over-month deceleration in new house price increases, year-over-year gains remained near record highs (+11.9%) in June.”

A Wait-and-See Approach in the Canadian Housing Market?

Last summer, there was a different problem afflicting many different real estate segments, particularly condominium owners: seller fatigue. Because the coronavirus pandemic injected the housing market with a huge supply of condo units amid lacklustre demand, owners who got in the market in the last couple of years found themselves with negative equity. As a result, they could not even afford to rent out their suites to make their monthly mortgage payments, since market rents had fallen below what they were paying on their mortgage.

Fast forward to the present. The condo market is heating up again, and a little bit of patience might have paid off for these owners.

Indeed, this wait-and-see approach might be necessary for the broader Canadian real estate market. With some Canadians suffering from buyer fatigue, many will have no option other than to sit on the sidelines and wait for market conditions to stabilize. Be it from demand exhaustion or the fallout from mortgage stress tests, homebuyers will likely monitor the situation and see what happens over the next 12 months. Depending on where they might be interested in buying, they could see price growth begin to ease, particularly if construction activity escalates and fresh supply comes online.

As the Royal Bank of Canada (RBC) recently stated in a research note, the frenzy was unsustainable. RE/MAX Kelowna realtor Colin Krieg suggests, “it could be buyer fatigue. It can be exhausting being out there, competing with other offers and having your heart broken just to do it all over again.” But alas, what goes up, must come down. There is hope on the horizon for hopeful homebuyers across Canada.

Courtesy RE/MAX Canada

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.

Row

The pace of growth in the sector has slowed, but row sales maintained their momentum in August, which was enough to push year-to-date sales to a new record high. New listings have also risen, preventing a more significant drop in inventory levels, but the months of supply fell just below three months in August.

The tighter conditions have been supporting price gains throughout most of the year, but the pace of growth is starting to slow. The row benchmark price in August pushed above $300,000, eight per cent higher than last year. Row prices have improved, but they remain lower than previous highs across every district in the city.

Apartment Condominium

Sales activity in August was higher than anything recorded over the past six years, but thanks to continued gains in new listings, inventory levels remain elevated compared to last year and longer-term trends. With 332 sales and 1,786 units in inventory, the months of supply remained above five months in August.   

While conditions are far better than last year, the apartment condominium sector has not seen the same type of sellers’ market conditions present in other property types, limiting price growth. As of August, the benchmark price was just over two per cent higher than last year, but it remains nearly 16 per cent lower than previous highs.

REGIONAL MARKET FACTS

Airdrie

Activity in the city showed few signs of slowing down as new listings were nearly matched by sales, keeping the sales-to-new-listings ratio at 88 per cent and the months of supply at just over one month.

The persistently tight conditions have contributed to further gains in prices this month. As of August, the benchmark price reached $389,500, which is nearly one per cent higher than last month and nearly 14 per cent higher than prices recorded last year. Most of the gains have been driven by the detached segment of the market.

Cochrane

Limited supply continues to weigh on the Cochrane market. In August, there were 88 new listings added to the resale market, but they were matched by 90 sales, keeping inventories exceptionally low at 154 units.

The market continues to favour the seller. With fewer than two months of supply, tight conditions have been impacting prices. As of August, the benchmark price totalled $452,400, 12 per cent higher than levels recorded last year.

Okotoks

A reduction in new listings likely prevented stronger sales this month. In August, there were only 56 new listings compared with 65 sales, causing inventories to drop to 85 units and the months of supply to fall to the lowest level ever recorded in August at 1.3 months.

The persistent sellers’ market conditions supported further price gains this month. The benchmark price in August reached $490,500, nearly one per cent higher than last month and over 11 per cent higher than prices recorded last year. Price gains continue to be driven by detached homes, which have recorded year-over-year gains of nearly 13 per cent.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.