The dream of homeownership lives on for Canadians, according to a recent poll conducted by CIBC.

Homeownership remains a top goal for 71 per cent of non-homeowners, while the majority of mortgage holders (82 per cent) and renters (64 per cent) express concerns about inflation and rising rates affecting their ability to meet mortgage payments or rental costs.

Homeowners happy to stay put

Given the current state of the housing market, a significant proportion of homeowners (66 per cent) revealed their inclination to stay in their homes for longer than originally planned. 

Economic conditions will be a decisive factor for 40 per cent of homeowners who may consider selling their properties once stability returns. Around 31 per cent of respondents declared their current homes as their “forever home.” 

Furthermore, the poll indicated that 30 per cent of homeowners intend to take advantage of the recently available multi-generational home renovation tax credit within the next five years.

However, a notable portion of homeowners expressed regret regarding the timing of their house purchases. Thirty-seven per cent wished they had bought their homes when mortgage rates were lower, while 30 per cent regretted not selling their homes during the recent housing market peak.

Helping the next generation achieve homeownership

The survey also revealed that 63 per cent of respondents with children intend to assist them with a down payment in the future, with 79 per cent expressing worries about the future affordability of homes for their children. 

Recognizing the potential unattainability of homeownership for their children without assistance, many Canadians are prepared to lend a helping hand. 

Carissa Lucreziano, vice president of Financial and Investment Advice at CIBC, emphasized the significance of this gesture while urging individuals to consider the impact on their own financial situations. 

“Many Canadians recognize that homeownership could be out of reach for their children unless they have help with a down payment,” Lucreziano recognizes.

Preferences for previously owned homes

The survey also sheds light on the preferences of recent first-time homebuyers, with the majority (59 per cent) opting for previously owned homes such as detached, semi-detached or townhomes. 

Fifteen per cent purchased pre-construction homes through builders or contractors, while the same percentage chose previously owned condominiums. Only seven percent of first-time buyers opted for pre-construction condominiums.

Renters struggling with future rental costs

The growing unease about affordability is a shared sentiment among both homeowners and renters.

While some renters (46 per cent) feel more capable of meeting their rent payments compared to a year ago, the majority (64 per cent) still express concerns about keeping up with future rental costs.

** Courtesy Real Estate Magazine **

MAY 2023 HOUSING MARKET UPDATE

JUNE 1, 2023

May sales reach a record high

Thanks to a significant gain in apartment condominium sales, May sales rose to 3,120, a new record high for the month. While the monthly gains have not outweighed earlier declines, this does reflect a shift from the declines reported at the start of the year.

At the same time, we continue to see fewer new listings on the market than last year, causing inventory levels to fall. With a sales-to-new-listings ratio of 85 per cent and months of supply of one month, conditions continue to favour the seller placing further upward pressure on home prices.

“Calgary’s housing market continues to exceed expectations with the recent gain in sales activity this month,” said CREB® Chief Economist Ann-Marie Lurie. “The higher interest rate environment and recent rental rate gains have driven more consumers to seek apartment condominium units. In addition, the recent rise in new apartment listings has provided enough options to support the sales gain. Calgary continues to benefit from the relatively healthy job market and recent population growth keeping housing demand strong across all property types.”

Persistently tight market conditions drove further price growth this month. In May, the unadjusted benchmark price reached $557,000, over one per cent higher than last month and nearly three per cent higher than last year’s monthly peak price of $543,000.

Detached

Rising sales for homes priced above $600,000 was not enough to offset declines in the lower price ranges as May sales reached 1,486, a year-over-year decline of eight per cent. New listings continue to fall for homes priced below $700,000, providing limited choice for consumers seeking out lower-priced detached homes. While new listings did improve for higher-priced properties, the relatively strong demand kept conditions tight across all price ranges, driving further price gains.

In May, the detached benchmark price reached $674,000, nearly two per cent higher than last month and over four per cent higher than last year’s peak price of $647,000. While each district reported a new record high price this month, the year-over-year gains ranged from a high of 12 per cent in the East District to a low of two per cent in the City Centre.

Semi-Detached

Sales also rose to near-record highs for the month for semi-detached homes. However, with 279 sales and 269 new listings this month, inventories fell, and the months of supply dropped below one month.

The exceptionally tight conditions caused further price gains, which for the first time, pushed above $600,000. This is the seventh consecutive month where prices have trended up, and as of May, levels are over three per cent higher than last year’s monthly peak. Like the detached sector, each district reported new record high prices in May. However, the strongest year-over-year gains occurred in the most affordable East district at nearly 12 per cent.

Row

New listings in May improved over levels seen earlier in the year, but thanks to monthly gains in sales, the sales-to-new listings ratio remained exceptionally high at 89 per cent, preventing any significant shift in the low inventory situation. While sales activity is still lower than last year’s levels, this is likely related to the lack of supply in this segment of the market.  Inventory levels are down 50 per cent compared to last year.

With less than one month of supply, it is not a surprise that prices continue to rise. In May, the benchmark price reached $390,500, a two per cent gain over last month and nearly nine per cent higher than last year's peak price of $359,600. Row prices rose across all districts, with year-over-year gains exceeding 15 per cent in the city's North East, South and East districts. The slowest price gains occurred in The City Centre, North West and South East at rates of over seven per cent.

Apartment Condominium

Sales in May reached 858 units, a year-over-year gain of 36 per cent and high enough to cause year-to-date sales to rise by four per cent for a new record high. Stronger sales were possible thanks to the recent gains in new listings. There were 1,025 new listings in May, a year-over-year gain of eight per cent. Despite the gain in new listings, the sales-to-new listings ratio remained high at 84 per cent, preventing any significant shift in inventory levels. As a result, inventory levels remained 23 per cent lower than what was available in the market in May 2022. The rising sales and low inventories kept the months of supply low at just over one month.

Persistently tight conditions drove further price gains in May. The unadjusted benchmark price reached $298,600, a monthly gain of over one per cent and a year-over-year gain of nearly 11 per cent. The recent growth has finally caused unadjusted apartment condominium prices to return to 2014 levels. Unlike other areas, not all districts reported a new record high price. The only areas to report a full recovery were the North, North West, West and South East districts. Overall year-over-year price growth ranged from a high of 16 per cent in the North District to a low of 10 per cent growth in the City Centre.

REGIONAL MARKET FACTS

Airdrie

Limited supply choice continues to weigh on sales activity in Airdrie. In May, there were 260 new listings and 225 sales, keeping the sales to new listings ratio high at 87 per cent and preventing any significant shift in inventory levels. However, with less than one month of supply, conditions are tighter than they were last year at this time.

Persistently tight conditions caused prices to trend up for the fifth consecutive month. The benchmark price reached $502,900 in May, remaining shy of the record high of $504,200 achieved in April 2022. While total residential prices have not reached new record highs, detached home prices have reached a new record with a benchmark price of $587,200.

Cochrane

Like other markets in the area, the limited level of new listings is preventing stronger sales activity. In May, 135 new listings came onto the market, and there were 122 sales, keeping the sales-to-new listings ratio elevated at 90 per cent. While inventory levels are still higher than last year’s, they are still exceptionally low for this time of year, leaving the months of supply just above one month in May.

The persistently tight conditions caused prices to trend up for the fourth consecutive month. While the benchmark price of $515,600 remains below the monthly high of $517,900 achieved in June 2022, should conditions continue to remain this tight, we could see further upward pressure on home prices over the next several months. 

Okotoks

Like other markets, low levels of new listings are limiting sales activity in the town. In May, new listings reached 87 units, and with 76 sales, the sales to new listings ratio pushed above 87 per cent. This also prevented any significant shift in inventory levels, and the months of supply once again dropped below one month.

Persistently tight market conditions caused prices to trend up for the fifth consecutive month. With a benchmark price of $575,900, prices are nearly four per cent above last year’s levels and at a new record high.

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

Alberta’s strong economic performance continues to fuel commercial real estate in Calgary, with most asset classes experiencing solid activity from both a lease and sales perspective.

Spillover from out of province remains a major source of business in the industrial sector, with warehousing and distribution properties topping the list of investor demands. Given limited availability of industrial space in the lower mainland, most containers that are shipped to BC are now loaded onto trucks for a 13-hour journey to Calgary’s ‘inland port.’ The supply of serviced land zoned industrial has fallen as a result, placing upward pressure on prices and raising lease rates, especially for newer product. Older properties available for sale may provide better returns, or more affordable rental opportunities. Availability continues to trend downward despite on-going new construction, with rates falling to 3.9 per cent in the first quarter of 2023, down from 5.5 per cent during the same period one year ago, according to Altus Group. De Havilland Canada is one of the recent companies to set up shop in Calgary, through its acquisition of 1500 acres in Wheatland County just 30 minutes east of Calgary. The company intends to build a state-of-the-art facility that includes aircraft assembly, runway, parts manufacturing, distribution centres and maintenance repair and overhaul centre. De Havilland Field is expected to be up and running in 2025 and employ more than 1,500 people.

Calgary’s office market has made some headway in the first quarter of the year, with availability rates edging downward. Two factors have contributed to the decline: the uptick in tech businesses and the repurposing of existing commercial to residential. Attracted to the value proposition of the Calgary commercial real estate market, a young workforce, and incentives offered by the Alberta’s Investment and Growth Fund, tech companies, including global tech firm Applexus Technologies, have started moving into the downtown core. Commercial repurposing has also met with success, thanks in large part to a government program providing incentives to convert office space to residential. Ten buildings have been earmarked for repurposing, representing more than 1,200 new homes in the core. The move also eliminates one million square feet of empty office space. Together, these factors have had an enormous impact on the downtown core, increasing vibrancy and sparking renewal in the city that includes a strong retail/restaurant component to service the growing residential presence. These two incentive programs have been so effective to date that lease rates are starting to climb in the core once again.

Suburban office space, particularly in Calgary’s Quarry Park, has been an attractive alternative to the core in recent years, with Imperial Oil leading the charge to the suburbs about eight years ago. The low-key presence within residential communities continues to resonate with many tenants. Lease rates for office space in the suburbs range from $10 per square foot to $15 per square foot.

Low vacancy rates characterize demand for retail space and buildings in Calgary at present. The area’s shopping malls remain vibrant, with Canadian Tire taking over many of the Bed, Bath and Beyond locations in Calgary.

Land sales overall remain brisk, with out-of-province investors seeking industrial, multi-family, and retail properties for development. Existing multi-family is experiencing solid demand from Ontario buyers, especially for new buildings with assumable CMHC financing in place. Recent data available from the Canadian Home Builders Association’s (CHBA) 2022 Municipal Benchmarking Report, prepared by Altus Group, shows that estimated approval timelines for residential development are amongst the fastest in the country at five months in 2022, down from 12 months in 2020. Cap rates in this segment of the market have waned over the past year. REITs are active in the market, typically seeking land zoned residential with approvals for purpose-built rentals in place. Given the higher interest rate environment, some vendor take back mortgages are available but they are generally found on overpriced listings.

Strong population growth, government incentives, and lower tax structures continue to draw companies both east and west of the province to Calgary and its surrounding communities. After an extended period of financial hardship between 2010 and 2020 in the province, the rebound in oil and gas prices, combined with a growing tech centre, and new residential development in the downtown core, are changing the landscape for the better.

**Courtesy RE/MAX Canada**

APRIL 2023 HOUSING MARKET UPDATE

MAY 1, 2023

Prices reach new record high

Persistent sellers’ market conditions placed further upward pressure on home prices in April. After four months of persistent gains, the total unadjusted benchmark price reached $550,800, nearly two per cent higher than last month and a new monthly record high for the city. 

“While sales activity is performing as expected, the steeper pullback in new listings has ensured that supply levels remain low,” said CREB® Chief Economist Ann-Marie Lurie. “The limited supply choice is causing more buyers to place offers above the list price, contributing to the stronger than expected gains in home prices.”

In April, sales reached 2,690 units compared to the 3,133 new listings. With a sales-to-new-listings ratio of 86 per cent, inventories declined by 34 per cent compared to last year and are over 45 per cent below long-term averages for April.

While sales have eased by 21 per cent compared to last year, the steep decline in supply has caused the months of supply to ease to just over one month. This reflects tighter market conditions than earlier in the year and compared to conditions reported last April.

Detached

New listings have eased across all price ranges in the detached market, with the most significant declines occurring for homes priced below $700,000. The decline in new listings far outpaced the pullback in sales, causing the sale-to-new listings ratio to rise to 88 per cent and the months of supply to fall to just over one month, tighter than both last year and last month. 

The persistently tight market conditions have contributed to further price growth. In April, the detached benchmark price reached a new record high at $661,900. Every district except the City Centre reported a new record high price in April. The City Centre is also the only district that reported over two months of supply. With a year-over-year gain of 6 per cent, the most affordable East district reported the largest price gain. 

Semi-Detached

With 234 sales and 264 new listings in April, the sales to new listings ratio jumped to 89 per cent. This caused further declines in inventory levels, which are at the lowest April level seen since 2007. As conditions are tighter than last year, it is not a surprise to see further price growth.

The unadjusted benchmark price in April reached and new record high at $593,200, reflecting a two per cent gain over last month’s and last year’s prices. While all districts posted a new record high price this month, the strongest gains occurred in the most affordable North East and East districts.

Row

Row properties faced the tightest market conditions in April, with a sales-to-new-listings ratio of 95 per cent and months of supply under one month. Row sales have eased over last April’s record high, but with 416 sales, activity is still far stronger than long-term trends. Relative affordability has supported the strong demand in this sector. However, the persistently tight market conditions have placed significant pressure on home prices.

After four consecutive monthly gains, the benchmark price reached a new record high of $387,400, over seven per cent higher than last year. Like other areas, the steepest price growth occurred in the most affordable districts of the North East, East and South.

Apartment Condominium

Thanks to a boost in new listings in April, the apartment condominium sector was the only sector to see sales activity rise over last year’s levels. With 953 new listings and 734 sales, inventories did trend up over the previous month but remained below the levels reported last year at this time. With a sales-to-new-listings ratio of 77 per cent and a months of supply of 1.5, conditions are not as tight as other property types in the city. However, this still reflects sellers’ market conditions and has been driving up prices. 

As of April, the unadjusted benchmark price reached $299,400, a significant gain over the $277,600 reported at the start of the year and over 10 per cent higher than last April. Following four months of consecutive gains, prices are now just shy of the previous high reported in 2014. While price gains across all districts have not resulted in a new city-wide record, the North, North West and South East reported new highs in April. 

REGIONAL MARKET FACTS

Airdrie

While sales in April trended up compared to last month, new listings eased, causing the sale-to-new listings ratio to once again push near 100 per cent, and inventories fell to the lowest April reported since 2007. While conditions are not as tight as last April, with one month of supply, conditions continue to favour the seller. 

Limited choice compared to demand contributed to the upward pressure on home prices compared to earlier this year. As of April, the benchmark price reached $502,000, an improvement from the $480,200 reported in January but nearly two per cent below the April 2022 record high of $510,700.

Cochrane

With 114 sales and 116 new listings, April’s sales to new listings ratio rose to 98 per cent. While inventories are still higher than what was reported in the market last year, with nearly all new listings selling, inventories trended down over levels seen earlier in the year. With only 142 units available, the months of supply dropped to just over one month, ensuring the market continued to favour the seller. 

Renewed tight market conditions contributed to the third consecutive monthly price gain, and the benchmark price pushed up to $509,600 in April. However, despite the monthly gains, prices remain nearly two per cent below last April, and the peak price of $522,600 reached in June of last year. 

Okotoks

Both sales and new listings trended up in April over levels seen earlier in the year, supporting some monthly gains in inventory levels. However, with only 67 units in inventory, levels are 66 per cent below long-term trends for the month and reflect the lowest April since 2006.

With just over one month of supply that has persisted for the past three months, we have seen 

further upward pressure on home prices in the town. As of April, the unadjusted benchmark price reached $577,300, nearly five per cent higher than last April and a new record high.

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

Sales activity has behaved as expected through the start of 2023 and slowed by 43 percent over last year’s all-time record-high performance in the first quarter. The steeper decline in the first quarter was expected, given the surge in sales last year, as purchasers were eager to enter the market ahead of expected rate gains.

“While no further rate gains have occurred so far this year, the higher lending rates and limited supply options are contributing to some of the pullbacks in sales,” said CREB® Chief Economist Ann-Marie Lurie. “Nevertheless, despite the decline, sales activity has remained well above pre-pandemic levels thanks to recent gains in migration coupled with a stronger employment market.”

The most notable challenge in the market has been related to supply levels. New listings were expected to ease as higher lending rates would make it more difficult for the move-up buyer. However, the pace of decline in new listings has exceeded expectations. New listings in the first quarter declined by 40 percent, preventing any significant shift in the supply levels given the relatively strong sales.

Inventory levels in the city averaged 2,814 units in the first quarter, 21 percent lower than last year’s levels and over 42 percent below long-term trends for the first quarter. With a sales-to-new-listings ratio of 71 percent and a months of supply of under two months in the first quarter, conditions continue to favour the seller.

Exceptionally tight market conditions early last year drove significant price gains throughout the 2022 spring market, peaking at $544,733 in the second quarter. While supply-demand balances remained tight throughout 2022, prices did trend down over the third and fourth quarters, somewhat adjusting for the rapid rise earlier in the year.

Further tightening in the supply-demand balance in the first quarter was enough to stop the downward price trend as the quarterly benchmark price rose by nearly two percent over the fourth quarter to $531,200 but remained below the Q2 high.

“Some of the fluctuations in price were expected this year, given what happened last year,” said Lurie. “However, price growth to date has been stronger than expected. Given the limited supply currently on the market, we could expect to see some stronger price growth through spring, potentially supporting a modest annual gain in 2023.”

Read more here

MARCH HOUSING MARKET UPDATE

April 3, 2023

Prices rise as conditions favour the seller

Sales and new listings have improved over the levels reported at the beginning of the year. As a result, the spread between sales and new listings supported some expected monthly inventory level gains. However, the 3,233 available units reflected the lowest March inventory levels since 2006 and left the months of supply just above one month, firmly in the seller’s territory. While conditions are not as tight as last March, low inventory levels leave purchasers with limited choice, once again driving up home prices.

Total unadjusted residential home prices reached $541,800 in March, a two per cent gain over last month and nearly one per cent higher than prices reported last year. While prices remain below the May 2022 high of $546,000, the pace of price growth over the first quarter has been stronger than expected due to the persistent seller’s market conditions.

“As expected, sales have eased from record levels while remaining stronger than they were before the pandemic thanks to recent gains in migration supporting demand,” said CREB® Chief Economist Ann-Marie Lurie.

“The challenge has been centered around supply. As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”

March recorded 3,318 new listings compared to the 2,432 sales, leaving the sales-to-new listings ratio relatively high at 73 per cent. However, both sales and new listings have eased by 40 per cent compared to levels reported last March.

Detached

Lower listings and higher lending rates have contributed to the steep pullback in detached sales. With 1,145 sales, this is the only property type where activity has fallen below long-term trends for the month. However, despite the drop in sales, inventory levels remain comparable to the lowest March levels recorded in 2006.

The persistently tight market conditions have contributed to further price growth. In March, the detached benchmark price reached a new record high at $649,800. Conditions are much tighter at the lower end of the market as supply levels have shifted. Nearly 63 per cent of the new listings that have come onto the market so far this year are priced over $600,000, much higher than the 48 per cent reported last year.

Semi-Detached

Like other property types, sales and new listings reported a significant drop over last year’s levels, leaving the market exceptionally tight with a sales-to-new listings ratio of 78 per cent in March. In addition, higher lending rates have driven many purchasers to seek semi-detached properties. However, conditions remained exceptionally tight for properties priced below $600,000.

Low inventory levels relative to the sales in the market drove further price gains this month. As a result, the unadjusted benchmark price reached $581,300 in March, over two per cent higher than last month and nearly two per cent higher than last year’s levels. However, despite the strong gains over the past several months, prices remain shy of the May 2022 monthly high of $584,700.

Row

While row sales, new listings and inventory levels have all trended up compared to levels seen at the start of the year, like other property types, levels are much lower than last year. With one month of supply available, conditions continue to favour the seller. The tight market conditions also placed further upward pressure on prices.

In March, the benchmark price rose to $378,100, reflecting a year-over-year gain of nearly eight per cent and representing a new monthly record high. Price growth was strongest in the city’s North East and South districts, with the lowest year-over-year gains occurring in the West district.

Apartment Condominium

March reported 682 apartment condominium sales, a decline of 11 per cent over last year’s record high. New listings also eased by eight per cent compared to last year, keeping inventory levels relatively low at 1,000 units. The low inventory levels compared to sales kept the months of supply well below two months, ensuring the market continued to favour the seller.

The benchmark price in Calgary reached $293,500, a year-over-year gain of nearly 11 per cent. The recent increase in price is shifting this market closer to full price recovery. For example, apartment condominium prices reached a monthly high back in November 2014 at $306,600.

REGIONAL MARKET FACTS

Airdrie

With 154 sales and 203 new listings in March, the sales-to-new listings ratio pushed up to 76 per cent, and inventory levels fell to the lowest levels for the month since 2014. While conditions are not as tight as they were last year, the months of supply did fall to the lowest level seen in over eight months. The months of supply in Airdrie has not risen above two months since January 2021, and the persistent tightness so far this year has caused prices to trend up again compared to levels seen at the end of 2022.

In March, the benchmark price reached $497,400, a two per cent gain over last month. Despite the recent improvements, levels are nearly two per cent below last year’s and still below the monthly peak of $510,700 reported in April 2022. While prices are still lower than last year’s peak, it is important to keep a perspective on how much prices have risen in this market over the past several years. As of March, the benchmark price is over 20 per cent higher than the levels reported in March 2021.

Cochrane

While both sales and new listings have improved over levels seen over the past several months, they are still much lower than the high levels reported last year. In addition, unlike other areas, inventory levels are higher than the low levels reported in the previous year. However, with only 155 units available in March and sales of 87, the months of supply has once again fallen below two months.

For the second month in a row, residential benchmark prices increased over the previous month reaching $501,900. Despite the monthly gain, prices are still slightly lower than last year’s levels, and the monthly high achieved in June of 2022 at $522,600. Like Airdrie, prices in the area have risen significantly over the past several years and are over 20 per cent higher than levels reported back in March 2021.

Okotoks

Sales and new listings have improved over levels seen earlier this year. However, with 55 sales and 67 new listings, conditions remained exceptionally tight, and with 61 units available in March, levels were amongst the lowest levels ever recorded for the month. Before the March 2020 pandemic, Okotoks would typically see over 200 units available in inventory.

With one month of supply, conditions continue to favour the seller placing upward pressure on prices. After three consecutive months of price gains, in March, the benchmark price reached $561,600, a new record high for the area.

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

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

The changes came in response to widespread concerns over housing affordability

The Canada Mortgage and Housing Corporation has announced several changes to the “Prohibition on the Purchase of Residential Property by Non-Canadians Act”, which came into effect on January 1.

The ban forbids any direct or indirect purchase of residential property by non-Canadians for a two-year period.

CMHC said that it made some amendments in response to widespread concerns over housing affordability, in particular the expansion of “exceptions to allow non-Canadians to purchase a residential property in certain circumstances.”

The revisions now allow more work permit holders to purchase a home they can live in while working in Canada.

“Work permit holders are eligible if they have 183 days or more of validity remaining on their work permit or work authorization at the time of purchase, and they have not purchased more than one residential property,” CMHC said. “The current provisions on tax filings and previous work experience in Canada are being repealed.”

The revisions also repealed the prohibition on land zoned for residential and mixed purposes.

“Vacant land zoned for residential and mixed-use can now be purchased by non-Canadians and used for any purpose by the purchaser, including residential development,” CMHC said.

An exception for development has been included, allowing non-Canadians to purchase residential property for the purposes of development.

“The amendments also extend the exception currently applicable to publicly traded corporations under the Act, to publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian,” CMHC said.

Additionally, the changes increased the threshold of foreign control for corporations investing in Canadian housing.

“With regards to privately held corporations or privately held entities formed under the laws of Canada or a province and controlled by a non-Canadian, the control threshold has increased from 3% to 10%,” CMHC said. “This aligns with the definition of ‘specified Canadian Corporation’ in the Underused Housing Tax Act.”

The changes came into force on March 27.

“These amendments will allow newcomers to put down roots in Canada through home ownership and businesses to create jobs and build homes by adding to the housing supply in Canadian cities,” said Ahmed Hussen, Minister of Housing and Diversity and Inclusion. “These amendments strike the right balance in ensuring that housing is used to house those living in Canada, rather than a speculative investment by foreign investors.”

2022 proved to be a rocky year for Canadian real estate. Between a looming recession, rising interest rates and challenges around capital availability, homebuyers and sellers from coast to coast experienced disruption. Yet with a trend towards cooling prices and tighter monetary policies set to slow the pace and pressure of recent years, the outlook for 2023 is one of both hope and caution.

This work explores the cultural context and influential trends set to shape the real estate and housing landscape in Canada in the year ahead. Through six key themes, we explore how people’s attitudes and values toward buying, owning, and selling homes are shifting and what these themes mean for real estate agents.

Click here for the full report

Courtesy RE/MAX Canada

The RE/MAX International conference took place last week in Las Vegas, the Viani Real Estate Group was honoured to be recognized among some of the top-producing REALTORS® in the entire RE/MAX network. 

The Viani Real Estate Group helped over 125 friends, families, businesses and investors achieve their real estate goals in 2022. Through the diverse skill set of our group, we were able to assist clients with their residential, commercial and rural needs. 

Thank you to all of our clients, those who referred clients to us and to our families for their continued support, without each of you we could not achieve such success.

Contact us today to achieve your real estate goals, put our experience to work for you.

Best Wishes
www.vianigroup.com
Viani | Lang | Kushner | Cheema | Keogh

FEBRUARY HOUSING MARKET UPDATE

March 1, 2023

Consistent with typical seasonal behavior sales, new listings and inventory levels all trended up compared to last month. However, with 1,740 sales and 2,389 new listings, inventory levels improved only slightly over the last month and remained amongst the lowest February levels seen since 2006.

“While higher lending rates are impacting sales activity as expected, we are seeing a stronger pullback in new listings, keeping supply levels low and supporting some stronger-than-expected monthly price gains,” said CREB® Chief Economist Ann-Marie Lurie. “Prices are still below the May 2022 peak and it is still early in the year. However, if we do not see a shift in supply, we could see further upward pressure on prices over the near term.”

Both sales and new listings declined over last year’s record high for the month. While sales activity remained stronger than long-term trends and levels reported throughout the 2015 to 2020 period, new listings fell below long-term trends.

With a sales-to-new-listings ratio of 73 per cent and a months of supply of under two months, the market has struggled to move into balanced territory causing further upward pressure on home prices. The unadjusted benchmark price increased by nearly two per cent over January levels and last year’s prices.

Detached

Both sales and new listings reported significant year-over-year declines over last year’s record high. While the seasonal monthly gain did see inventories move up over the last two months, levels are still amongst the lowest seen in February, and the months of supply fell below two months.

Further tightening conditions did cause the unadjusted benchmark prices to rise over last month’s levels, but at a price of $635,900, it is still below the peak reported in May 2022. While supply continues to remain a challenge relative to demand for lower-priced homes, we are seeing conditions shift into balanced territory for homes priced above $700,000.

Semi-Detached

Like the detached sector despite the seasonal monthly gain, both sales and new listings fell from last year’s record high. While inventories are starting to rise over the levels seen in the past few months, they remain amongst the lowest levels reported for February. The relatively low inventory levels caused the months of supply to fall below two months in February, while it is still higher than last year’s ultra-low levels, conditions continue to favour the seller.

The unadjusted benchmark price reached $568,100 in February, nearly two per cent higher than last month and a three per cent gain over last February. Persistently tight market conditions contributed to the monthly unadjusted gain in the benchmark price. However, like detached properties prices remain below the May 2022 peak.

Row

Conditions remained exceptionally tight in February with only one month of supply and a sales-to-new listings ratio of 87 percent. While row sales have eased over record levels, they have remained relatively strong for February as demand shifts toward the affordable product in the market.

The persistently tight conditions caused further upward pressure on prices. In February, the unadjusted benchmark price reached $369,700, a monthly gain of over two per cent and a year-over-year gain of nine per cent. Unlike the other sectors, prices have reached a new high this month.

Apartment Condominium

Sales for apartment condominiums did not see the same pace of decline as other property types in February partly due to the level of new listings coming onto the market. Persistently strong sales compared to listings have caused February inventory levels to remain relatively low compared to levels seen over the past eight years and the months of supply once again dropped below two months.

The tight market condition contributed to the upward pressure on prices. In February, the unadjusted apartment benchmark price reached $286,000, nearly three per cent higher than last month and over 11 per cent higher than last February. While prices are still higher than the levels reported last year, they remain nearly seven per cent below the peak levels reported back in 2014.

REGIONAL MARKET FACTS

Airdrie

Inventories continued to improve in February but with only 178 units available levels are still well below longer-term trends for the month ensuring that the months of supply remained below two months.

The unadjusted benchmark price in February rose over last month keeping it comparable to levels seen last year at this time. However, with a benchmark price of $487,200, prices remain below the peak price of $510,700 reported in April 2022.

Cochrane

Like Airdrie, inventory levels have also been on the rise in Cochrane. While February levels are double what was available in the market last year, inventories remain over 40 per cent below long-term trends for the month. Nonetheless, both sales and new listings have eased so far this year helping the market shift toward more balanced conditions.

The February benchmark price did improve both over last month’s and last year’s levels. However, with an unadjusted price of $492,900, levels are still below the $522,600 peak reached in June of 2022.

Okotoks

While both sales and new listings have slowed compared to last year, conditions remained exceptionally tight with a sales-to-new listings ratio of 90 per cent. Inventory levels also continued to fall both compared to last month and last year, with levels nearing the February 2006 record low.

As conditions continue to favour the seller, it is not a surprise that we continue to see upward pressure on home prices. In February, the unadjusted benchmark price reached $555,000, three per cent higher than last month’s and last February’s levels. However, like some areas, prices remain just shy of the May peak of $560,700.

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

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

The Viani Real Estate Group is honoured to be recognized as the #4 top-producing team at RE/MAX Real Estate (Central) for 2022.

In addition, the Viani Real Estate group also achieved Diamond Team status, one of only four teams to do so at RE/MAX Real Estate Central.

RE/MAX Real Estate (Central) has been recognized as the #1 RE/MAX office in the world for either the number of sales, total sales volume or both for the past 23 years and has over 250 realtors, we are proud to say we were amongst the top producing realtors at this number one RE/MAX office in the world.

The Viani Real Estate Group helped over 130 friends, families, businesses and investors achieve their real estate goals in 2022. Through the diverse skill set of our group, knowledge and experience we were able to assist clients with their residential, commercial and rural needs.

Thank you to all of our clients for your continued support, buying or selling real estate is likely one of the largest investments you will make, we appreciate being your realtors of choice.

Thank you to those who referred clients to us, there is no higher compliment than the referral of your family and friends, and to our families for their continued support, without each of you, we could not achieve such success.

We look forward to hearing from you in 2023 and the Viani Real Estate Group has some exciting news coming in the next couple of weeks.

Contact us today to achieve your real estate goals, put our experience to work for you.

Best Wishes
www.vianigroup.com
Viani | Kushner | Richter | Lang 

JANUARY HOUSING MARKET UPDATE

Feb. 1, 2023

Supply of lower-priced homes remains low for January

The level of new listings in January fell to the lowest levels seen since the late 90s. While new listings fell in nearly every price range, the pace of decline was higher for lower-priced properties.

At the same time, sales activity did slow compared to the high levels reported last year but remained consistent with long-term trends. However, there has been a shift in the composition of sales as detached homes only comprised 47 per cent of all sales.

“Higher lending rates are causing many buyers to seek out lower-priced products in our market,” said CREB® Chief Economist Ann-Marie Lurie. “However, the higher rates are likely also preventing some move-up activity in the market impacting supply growth for lower-priced homes. This is causing differing conditions in the housing market based on price range.”

With 2,451 units available in inventory, levels remain 43 per cent lower than long-term trends for the month. While overall inventory levels are slightly lower than last January, there is significant variation by price range. Homes priced under $500,000 reported year-over-year inventory declines of nearly 30 per cent while inventory levels improved for homes prices above that level.

Although conditions are not as tight as last year, lower supply levels are preventing a significant shift toward balanced conditions and prices did trend up slightly over last month breaking the seven consecutive month slide. As of January, the benchmark price reached $520,900, 5 per cent higher than last January, but still well below the May 2022 high of $546,000.

Detached

Detached home sales saw the largest pullback despite the year-over-year rise in inventory levels. Higher lending rates are cooling demand for higher-priced homes which is supporting inventory gains. Meanwhile, a limited supply of lower-priced products is preventing stronger sales in the lower price ranges.

The variation within the market is likely causing divergent trends in pricing as prices have trended down in the higher-priced City Centre, while still reporting some modest gains in other districts of the city. Overall, the benchmark price reached $622,800 in January, slightly higher than levels reported in December, but still below the monthly high achieved in May 2022.

Semi-Detached

Sales in January slowed relative to last year’s levels but remained above levels achieved before the pandemic. At the same time, a pullback in new listings has left inventory levels below the already low levels reported last January. Like the detached sector, semi-detached homes have seen shifts where the demand remains strong for lower-priced product relative to the supply likely causing divergent trends in pricing.

In January, most districts reported a monthly benchmark price growth. However, prices did trend down in the higher-priced City Centre district causing Calgary’s semi-detached benchmark prices to ease slightly over levels seen in December 2022. Despite the monthly adjustment overall, prices remained nearly six per cent higher than levels reported in January 2022.

Row

Row homes sales slowed over last year’s record high but remained well above long-term trends for the month. Sales would have likely been stronger if more listings came onto the market. In January, new listings dropped over the previous year and were over 20 per cent below long-term trends. The adjustments in both sales and new listings did little to change the low inventory scenario and the months of supply remained below two months in January.

The persistently tight conditions did also prevent any downward pressure on prices which posted a nearly one per cent gain over December levels. With a benchmark price of $361,400, levels are still over 12 per cent higher than last January, and only slightly lower than the $363,700 monthly high achieved in June 2022.

Apartment Condominium

Sales for apartment condominiums did not see the same pace of decline as other property types in January partly due to the level of new listings coming onto the market. Nonetheless, inventory levels remained well below long-term trends for the month and have not been this low in January since 2014.

The adjustments to both sales and inventory have left this sector with a months of supply that is lower than levels seen at the start of 2022. The shift to affordable options is also impacting prices within the apartment condominium sector. In January, prices trended up from December levels driven by strong gains in the lower priced district of the North East and East. Overall, apartment condominium prices in the city reached $277,600, one per cent higher than last month and a year-over-year gain of nearly 10 per cent, narrowing the spread from the record high prices set in 2014.

REGIONAL MARKET FACTS

Airdrie

January sales eased over last year’s record high but remained consistent with long-term trends for the month. The pullback in sales did outpace the pullback in new listings causing inventory levels to improve over the exceptionally low levels reported last year. Despite the inventory gain, levels remain over 50 per cent lower than long-term trends for January

These shifts in the market have caused the months of supply to rise over last January’s 2022 record low. However, with less than two months of supply, conditions continue to remain relatively tight and supported a modest monthly price gain. In January, the benchmark price reached $480,200, nearly eight per cent higher than last January, but still below the monthly peak of $510,700 achieved in April 2022.

Cochrane

January sales eased over last year’s record high but remained comparable to long-term trends for the month. At the same time, new listings also slowed, but not at the same pace as sales. Inventory levels also rose from the near record lows reported last January. While improving inventories is likely welcome news to most buyers, inventory levels are still nearly 40 per cent below long-term trends.

Shifts in both sales and inventory have caused the months of supply to rise to nearly three months. This has taken some of the pressure off home prices which have seen exceptional gains over the past two years. Overall, the benchmark price in January was $488,900, over one per cent lower than last month but still seven per cent higher than January 2022 levels.

Okotoks

Both sales and new listings slowed in January compared to last year, preventing any significant addition to inventory compared to what was available in the market at the end of 2022. While there is more supply in the market compared to last January’s record low, with only 56 units available, this is still 61 per cent below long-term trends for the town.

The persistently tight market conditions have supported significant price growth over the past several years. While recent shifts have taken some of the pressure off the pace of price growth, prices did see some further gains this month. In January, the benchmark price reached $539,000, an increase from December and a year-over-year gain of nearly seven per cent.

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