There were 2,186 sales in October, a record high for the month and over 35 per cent higher than longer-term averages. Year-to-date sales are on pace to hit new record highs and are currently 61 per cent higher than average activity recorded over the past five years and 42 per cent higher than 10-year averages.

“Moving into the fourth quarter, the pace of housing demand continues to exceed expectations in the city,” said CREB® Chief Economist Ann-Marie Lurie.

“Much of the persistent strength is likely related to improving confidence in future economic prospects, as well as a sense of urgency among consumers to take advantage of the low-lending-rate environment.”

New listings have improved relative to last year, but stronger sales caused further easing in inventory levels, which remain 16 per cent lower than last year and longer-term averages for the month. Supply levels have struggled to keep pace with demand, but much of the decline in the months of supply has been related to the strong sales levels. As of October, the months of supply dipped to just over two months.

Persistently tight market conditions did cause some benchmark price gains this month. The benchmark price in October reached $460,100, slightly higher than last month and nearly nine per cent higher than the $422,600 recorded last October.

HOUSING MARKET FACTS

Detached Thanks to gains in most districts, detached home sales improved by 17 per cent compared to last year. The strongest sales growth this month occurred in the North East and East districts, which are the most affordable districts in the city. New listings improved relative to last year’s levels, but with 1,350 new listings in October and 1,333 sales, the sales-to-new-listings ratio for detached homes rose to 99 per cent, inventories fell to 2,063 units and the moths of supply dipped below two months.    Further tightening in the detached market resulted in upward pressure on home prices. In October, the detached price reached $540,900, up nearly one per cent compared with last month and over 10 per cent higher than levels reported last October. On a year-to-date basis, price growth has been the strongest in the North and South East districts, where prices have increased by over 11 per cent.   Semi-Detached Sales continued to improve this month, contributing to the year-to-date record high. However, new listings eased and the sales-to-new-listings ratio rose to 98 per cent as inventories fell. The months of supply, which has trended down over the past several months, once again placed upward pressure on prices in the sector. The semi-detached benchmark price rose to $427,800 this month, nearly nine per cent higher than last year’s levels. So far this year, sales have improved across every district, but the tightest conditions have been in the South East and North districts. These two districts have also seen the highest year-to-date price gains, which have exceeded 10 per cent.   Row Thanks to improvements across most districts, row sales remained relatively strong in October, contributing to the year-to-date record high. However, unlike other sectors, the row sector did see a significant increase in new listings compared with last year’s levels, preventing a large decline in inventory. This helped push the months of supply back above three months. The market is not as tight as it was last month, but conditions are still far tighter than levels typically seen during this time of year and vary significantly by district. The months of supply remained below three months in the North, South, South East and East districts in October. Row prices have not recovered from previous highs, but prices did trend up this month. So far this year, the largest gains have been for row homes in both the East and North East districts, where benchmark prices have averaged less than $200,000 in 2021.   Apartment Condominium Thanks to improvements across the city, October condominium sales were strong relative to both last year’s levels and long-term averages. Nearly half of the condo sales occurred in the City Centre, which was the only district to see monthly sales trend up significantly relative to last month. Some of the sales gains could be related to price adjustments in the district, as October benchmark prices were over three per cent lower than last year’s levels and trended down from last month. The decline in the City Centre prices offset the gains recorded in other parts of the city, causing citywide figures to remain relatively unchanged from levels recorded last October. Despite some of the monthly shifts on a year-to-date basis, condominium prices have improved by over two per cent compared with last year, with gains ranging from less than one per cent in the City Centre to over six per cent in the West district. Price gains for apartments are far lower than other property types, as the same supply challenges have not existed in this sector.

REGIONAL MARKET FACTS

Airdrie October was another record-high month for sales. This contributed to year-to-date sales of 2,039, nearly 81 per cent higher than average activity from the past five years. Lifestyle choices, low interest rates and Airdrie’s relatively affordable detached homes compared with Calgary have supported the strong sales. While new-home starts are ramping up, it has done little to ease the supply shortages facing the resale market. In October, sales outpaced new listings, causing further declines in inventory levels and a months of supply that eased to one month. Benchmark prices in October were over one per cent higher than last month and over 14 per cent higher than levels reported last year. Gains have been exceptionally strong in the detached segment of the market, where prices are nearly 16 per cent higher than last October.   Cochrane Thanks to a jump in sales for higher-density product, sales this month rose to new record highs. Year-to-date sales have pushed to 1,081 units, which is nearly 95 per cent higher than average activity from the past five years. There was also a turnaround in new listings, which improved in October after several months of easing. This helped improve some of the supply-demand balances, but the Cochrane housing market continues to struggle with sellers’ market conditions. While conditions remain tight, there was no additional upward pressure on monthly prices in October compared with previous months. As of October, year-to-date total residential benchmark prices have improved by nearly seven per cent across the entire resale market.     Okotoks For the second time this year, sales outpaced new listings this month, dropping inventory levels to 74 units. This is nearly 60 per cent lower than traditional levels and resulted in the lowest months of supply ever recorded in October. Conditions remain exceptionally tight, but prices trended down slightly compared to previous months. However, it is important to note that on a year-to-date basis, total residential prices have improved by over nine 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.

According to Canadian consumers, RE/MAX is the brand with the #1 Most Trusted Real Estate Agents in Canada*. The results of the 2022 BrandSpark® Canadian Trust Study are based on a survey of 7,857 Canadians – one of the largest studies of its kind – to gauge their honest opinions of what brands they trust most and why. BrandSpark analyzed brands in 64 different categories, spanning Finance & Insurance, Health & Fitness, Retail & Restaurants, Telecom & Home, Travel, and Apps & Websites.

“We’re honoured to be the real estate brand that is most trusted by Canadians,” says Christopher Alexander, Senior Vice President at RE/MAX Canada. “Behind every successful real estate transaction is a foundation built on trust.”

Adds Elton Ash, Executive Vice President at RE/MAX Canada, “The RE/MAX network prides itself on providing expertise and advice that’s in the best interests of the homebuyers and sellers we serve. It’s truly rewarding to know that RE/MAX is more trusted than any other brand of real estate in Canada, and we look forward to continuing to help buyers and sellers achieve their real estate goals.”

Why Trust Matters, for Consumers and Brands Alike

According to BrandSpark, when consumers trust brands, they buy them more often and are willing to pay a premium. Brands can build trust by focusing on eight key trust drivers:

• quality
• fair prices
• recommendation
• innovation
• customer support
• values
• transparency, and
• heritage

“Trust is important because it builds loyalty and engagement between consumers and brands; everyone benefits when building trust is prioritized,” said Philip Scrutton, Vice-President of Shopper Insights at BrandSpark International. “The BrandSpark Canadian Shopper Study showed that 75 percent of shoppers trust consumer-voted awards. Since the BrandSpark Most Trusted Awards are completely determined by consumers, they provide a consensus of trust, which allows consumers to shop smarter and encourages purchasing those brands that are most trusted.”

About RE/MAX

RE/MAX is a global network of independently owned and operated offices, with more than 140,000 sales associates in over 110 countries and territories. RE/MAX agents sell more real estate than any other Canadian brand** (Source: CREA/RE/MAX) and more buyers and sellers would recommend RE/MAX than any other real estate brand.***

The RE/MAX track record, built over nearly 50 years, is proof that a focus on the customer’s needs, backed by the ability to deliver, remains as important as ever.

Courtesy RE/MAX LLC

Canadian housing market expected to remain strong this fall, despite Delta variant, say RE/MAX brokers and realtors

Young families driving demand for single-detached homes in cities across the country

1. Canadian housing market prices are anticipated to increase by 5% in the remaining months of 2021, according to RE/MAX brokers and agents.
   
   

2. 26/29 major Canadian housing markets analyzed are seller’s markets, driven by lack of supply and high demand.

Early indicators from RE/MAX brokers and agents across the Canadian housing market suggest steady activity for the remainder of 2021. According to the RE/MAX Canada 2021 Fall Housing Market Outlook Report, RE/MAX brokers and agents expect the average residential sale price for all home types could increase by five percent from now until the end of the year.

Single-detached homes experienced the biggest price gains when comparing 2021* to 2020 data, rising between 6.8 and 27.3 percent across 26 markets surveyed in the report. RE/MAX brokers and agents expect this trend to continue into the fall, driven by strong demand by young families.

“As our brokers and agents predict, the fall market activity is expected to remain steady, which is promising, despite the ongoing challenges presented by the Delta variant,” says Christopher Alexander, Senior Vice President, RE/MAX Canada. “This is particularly relevant given the Canadian housing markets is often a good indicator of economic activity in the country, and with the Bank of Canada forecasting economic growth of 4.5 percent in 2022, a strong fall housing market is a good sign that things may be starting to return to a more natural rhythm.”

Regional Canadian Housing Market Overview

Western Canada

High housing prices, driven up by low supply and high demand, have created challenging conditions for many homebuyers across Canada, especially in cities such as Toronto and Vancouver. However, affordable options still exist for homebuyers who are considering alternative markets, thanks to their continued ability to work remotely. RE/MAX brokers have reported this trend in Edmonton and Calgary, where buyers are leveraging increased purchasing power thanks to local housing affordability coupled with lower interest rates. RE/MAX brokers and agents anticipate this trend to continue through the remainder of 2021.

When comparing activity year-over-year (YoY) average sale prices across single-detached homes, condos and townhomes, British Columbia’s Nanaimo, Victoria and Vancouver experienced significant price growth, at 23 percent, 19.1 percent and 16.4 percent, respectively. Nanaimo also saw one of the largest price surges in its condo and townhome segments when compared to other Western Canada regions, with average condo prices currently sitting at $343,713 (a 17.6-per-cent increase YoY), and townhomes at $511,549 (a 65.8-per-cent increase YoY). In Calgary and Regina, the fall outlooks are relatively status quo, with prices expected to remain flat in Calgary and up one percent in Regina. Meanwhile, Edmonton, Saskatoon, Vancouver, Victoria, Winnipeg and Nanaimo are expected to see price gains ranging between four and nine percent through the remainder of the year, according to RE/MAX brokers and agents.

Ontario

Unsurprisingly, Ontario has seen some of the highest average residential price increases across single-detached homes in the country, with the majority of regions (13 out of 16), experiencing increases between 20 and 35.5 percent YoY. The outlier markets that experienced price increases below 20 percent include Toronto (+14.6 percent), Thunder Bay (+17.1 percent) and Mississauga (+19.7 percent).

The condo and townhome segment in all of these regions has also performed well, with smaller and more suburban markets such as Kitchener, North Bay, London, Peterborough, and Southern Georgian Bay seeing a higher surge YoY. The estimated price outlook for the remainder of the year ranges from a two-per-cent price decrease in North Bay to increases across the other regions ranging between two and 15 percent.

Atlantic Canada

Much unlike some regions in the West, housing market activity in Atlantic Canada remained persistent YoY, with Halifax and Moncton seeing significant price increases across all property types. This trend is expected to continue for the remainder of 2021. The price of single-detached homes in Halifax increased 24.3 percent YoY, from $402,484 to $500,147. Meanwhile, Moncton prices rose from $233,676 to $282,886 – up 21.2 percent YoY.

According to RE/MAX brokers and agents, the condo and townhome markets in Halifax, Saint John and Moncton condo saw prices surge between 12.5 percent and 48.9 percent YoY. Moncton in particular is expected to continue strong, with one of the highest price outlooks for the remainder of 2021, between 12 and 15 per cent. Saint John is expected to see more-tempered price growth, ranging between one- to three-per-cent across all property types, while Halifax could see a six-per-cent increase in average sale price for the remainder of the year.

“Housing activity throughout the pandemic has remained strong, so it comes as no surprise that the outlook for the remainder of the year continues on an upward trajectory, which is great for homeowners and their equity, but challenging for first-time buyers who have been priced out of the market,” says Elton Ash, Executive Vice President, RE/MAX Canada. “We must continue to educate Canadians from a practical, real-world, point of view. What is affecting the Canadian housing market right now? Low-Interest rates, economic stimulus, higher home-buying budgets, a higher savings rate, homeowners too scared to sell, and not enough new construction. These factors have created current market conditions.”

Adds Alexander, “The Canadian housing market has historically given homeowners great long-term returns and solid financial security, but there’s no doubt that the rapid price growth we’ve experienced recently is cause for concern. However, it’s not cause for panic. The data shows single-detached home price acceleration may be starting to level off in some urban centres, but prices continue to rise in many smaller cities and communities that were once havens for affordability. Real estate has been a boon to the Canadian economy, during the pandemic and before it. We believe in the long-term health of Canada’s housing market, but in order to protect it, we need to acknowledge and address the housing supply shortage. Our current government needs to stop applying band-aids and cure the problem at its root.”

About the 2021 RE/MAX Fall Housing Market Outlook Report

The 2021 RE/MAX Fall Housing Market Outlook Report includes data and insights from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. Regional summaries with additional broker insights can be found at REMAX.ca. The fall outlook is based on predictions of RE/MAX brokers and agents. The overall outlook is based on the average of all regions surveyed, weighted by the number of transactions in each region.

*2020 average residential sale price numbers were full-year, 2021 were from January 2021-August 31, 2021.

Courtesy RE/MAX Western Canada

Residential sales totalled 2,162 in September, nearing the record high for the month recorded in 2005. Further gains in new listings likely supported some of the sales growth that occurred this month.

“While sales activity in the fall tends to be slower than in the spring months, the continued strong sales are likely being driven by consumers who were unable to transact earlier in the year when supply levels had not yet adjusted to demand,” said CREB® chief economist Ann-Marie Lurie. “The market continues to favour the seller, but conditions are not as tight as they were earlier this year.”

Inventory levels in September eased to 5,607 units, keeping the months of supply below three months. However, there is significant variation depending on property type and the tightest conditions continue to be in the detached market, with under two months of supply. At the same time, the apartment condominium sector is not facing the same level of supply challenges, with nearly five months of inventory available based on current demand levels.

Supply adjustments have helped ease the upward pressure on home prices. Prices have eased slightly relative to a few months ago, but they remain well above levels recorded earlier in the year. As of September, the total residential benchmark price in Calgary was $457,900, over eight per cent higher than levels recorded last year.   

 

HOUSING MARKET FACTS

Detached

Calgary recorded 1,268 sales this month, a significant gain relative to last year and 30 per cent higher than longer-term trends. Sales this month improved across all price ranges except homes priced under $400,000. However, the decline in sales in the lower price range is likely related to limited supply choice.

On a year-to-date basis, prices have improved across all districts, with gains that range from a low of five per cent in the City Centre to nearly twelve per cent in the South East. The City Centre is the only district where prices remain below previous highs. The September detached benchmark price of $537,500 has trended down slightly from the record high set in July, but this has not erased earlier gains, as it remains nearly 10 per cent higher than last year.

Semi-Detached

With less supply choice in the lower price ranges of the detached market, many consumers have turned to the semi-detached sector. With 2,005 sales so far this year, year-to-date sales are over 45 per cent higher than long-term trends and have reached new record highs. The improvement in sales was, in part, related to the improvements in new listings. The sales-to-new-listings ratio in this sector has averaged below 70 per cent over the past several months. This is nowhere near as tight as the detached sector, which has averaged 80 per cent.

While conditions have not been as tight in the semi-detached sector, there have still been substantial price gains this year. As of September, the benchmark price was $424,900, slightly lower than last month, but over eight per cent higher than last year’s levels. Like the detached sector, the semi-detached sector’s slowest price growth has occurred in the City Centre. On a year-to-date basis, prices remained below previous highs in the City Centre, North East and South districts.

Row

With 318 sales this month, year-to-date sales pushed up to 3,057 units, which is 62 per cent above long-term trends and on pace to hit record levels this year. Sales have risen across every district, with the largest growth recorded in the South East district.

While new listings did improve this month, it was not enough to prevent further declines in Inventory levels. The months of supply remained relatively low at less than three months, which is well below traditional levels for this time of year. Tighter conditions have supported price growth across all districts so far in 2021. However, unlike the detached and semi-detached sectors, row prices remain below previous highs across all districts in the city.

Apartment Condominium

A boost in new listings this month translated into some gains in sales activity. However, with a sales-to-new-listings ratio of 58 per cent, inventories still trended up relative to the previous month and last year’s levels.

The months of supply remained just below five months in September, far lower than levels recorded last year and over the past five years. Conditions have generally been more balanced for this property type compared with other sectors, preventing strong price gains. On a year-to-date basis, citywide benchmark prices improved by nearly three per cent, but they remain over 14 per cent lower than previous highs.

 

REGIONAL MARKET FACTS

Airdrie

The Airdrie market has faced extremely tight conditions throughout 2021 and supply constraints continued to place some limits on sales this month. New listings slowed in September to 179 units and there were 166 sales. As a result, the sales-to-new-listings ratio remained above 90 per cent and inventories trended down.

The months of supply has remained under two months since February, translating into steady price gains throughout most of this year. As of September, the benchmark price reached $389,700, which is similar to last month, but over 13 per cent higher than levels recorded last year. Much of the growth has been driven by detached homes.

Cochrane

For the second month in a row, sales outpaced new listings coming onto the market, causing inventories to fall to the lowest levels recorded in over a decade.

While conditions have remained exceptionally tight, with just over one month of supply, detached home prices have dipped slightly relative to a few months ago. This could be related to added competition coming from the new-home market. However, as of September, detached prices have increased by more than nine per cent compared to last year.

Okotoks

Sales in Okotoks this month slowed relative to last year. Despite the decline this month, year-to-date sales remain at record-high levels. Inventory levels remain exceptionally low, and the months of supply stayed below two months in September.    

The pace of price growth this month has slowed, but the year-to-date detached benchmark price in the town has improved by nearly 11 per cent compared to last year.

Click here to download the PDF

Fall is the season of change, from the color of leaves to daylight hours to temperature. During this time, your homes face the effects of drastic fluctuations in weather as summer slowly fades away. Before snow creeps its way into the forecast, take the time to prepare your home in advance for colder days ahead.

Assess drainage

Foliage is beautiful, but those fallen leaves can be pesky. Take time to unclog gutters and downspouts to ensure snowmelt efficiently drains off of your home without causing damage to its exterior. While you’re at it, have a professional address any leaks in the roof now before wetter weather identifies them for you.

Don’t forget to drain outdoor hoses and faucets and shut them off from the inside to prevent them from freezing, breaking or bursting before the temperature drops to far below zero.

Get the HVAC system in order

Don’t wait until the first frost to test out your heating system. Schedule a maintenance appointment with an HVAC professional this fall to guarantee you can be toasty at a moment’s notice, they can also do a carbon monoxide check to ensure air safety. Do a check-up on the filtration system while you’re at it – experts suggest replacing the filter in your heating system every two to three months to prevent buildup.

Don’t forget your humidifier, winters on the prairies can be dry ensure you have changed the filter and ensured the humidistat is set for the desired amount of humidity.

Put your Air conditioning unit to rest for the season and do not forget to place the cover on it.

Invest in outdoor furniture covers

Once days grow cold, using patio furniture will be on pause until spring. To keep furniture in good condition – and to preserve your grill – look for heavy-duty, waterproof covers. Purchasing these for preservation can help prevent having to replace items down the road, potentially saving you big bucks.

Autumn also marks the time to store away other lawn ornaments, like ceramic flowerpots, to prevent cracking.

Fix driveway cracks

Existing cracks in pavement will only expand and even crumble when water – or snow – seeps in. Concrete sealer is readily available at hardware stores and can ultimately save you from needing to repave the whole driveway once those frost heaves start creeping up.  

Stock up on snow supplies

Ensure to have a snow shovel and sand or snow melter for the driveway or sidewalks and a sturdy scraper for the car windshield. For those without a garage or covered parking, check out windshield covers that line the windshield end-to-end preventing snow and ice buildup and get that extra-long extension cord out for nights when you need to plug your vehicle in. 

Clean your fireplace

Deep clean the base of your wood-burning fireplace before it gets to work this coming winter. Schedule an appointment with a chimney sweeper to ensure all apparatus – including the flue – are safe and functioning accordingly. 

Control airflow

Assess your home, especially windows and doors, for drafts, heat loss through windows can be responsible for 25-30 percent of heating energy use. With weather-stripping, film wrap, physical blockers and other DIY methods, you can prevent the cold draftiness that often results from having older windows. While keeping you more comfortable, doing so can also help save money on heating costs.

A lesser-known tip for controlling airflow within the home is to reverse the direction of your ceiling fan. In the summer months, the ceiling fan should spin counterclockwise pushing down cold air. In the fall, reverse its direction using the button on the fan’s base to counterclockwise, which will pull cold air up and keep the lower half of the room warm.

Fertilize your lawn

You know what they say: The best offence is a good defence. If you want to keep your lawn looking great in the spring and summer, you need to prep it for the fall and winter. Roots are still active when the grass isn't growing, so applying fertilizer will prevent winter damage. Doing this will also help your lawn turn green faster in the spring.

Just as with your lawnmower in the Spring ensure your snowblower is accessible, tuned up and ready to battle the impending snow.

Change your batteries

Once a year you should be checking to make sure all smoke detectors and carbon monoxide devices are working. Since you're already testing everything else out, you might as well add this on.

Don't forget the Garage

Service summer power equipment. Empty fuel and clean lawnmower and trimmer. Have lawnmower blades sharpened and oil changed. Have any necessary repairs done now, so that you’re ready come Spring.

Store summer vehicles. If you have a motorcycle, summer car, ATV or other type of seasonal vehicle, now’s a good time to have that serviced as well.

Ensure the garage is organized and ready to keep your vehicle protected on those snowy winter days and nights.

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. 

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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.

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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.

Are the U.S. and Canadian housing market in a bubble right now? Most importantly, after 15 months of skyrocketing gains, are both nations’ real estate sectors about to cool down? These questions are top of mind for real estate industry observers across North America who have been closely monitoring activity as both nations ease out of the unprecedented public health crisis of the past year.

From bidding wars to blind bidding, the two countries are going through comparable experiences in their respective real estate industries. Most important of all, sales activity and price growth have been through the roof since the early days of the COVID-19 pandemic. Fuelled by historically low borrowing costs and changing consumer trends, the housing gains in the Great White North and the Land of the Free have been monumental. And, in certain segments of the market, the growth has been record-breaking.

But just how similar is the Canadian housing market to the U.S. real estate market right now? We’re taking a deeper look at the numbers to find out:

How Does the Canadian Housing Market Compare to the U.S. Right Now?

According to the National Association of Realtors (NAR), existing-home sales across the US rose 1.4 percent year-over-year in June to 5.86 million units, following four consecutive months of declines. Home resales advanced at an annualized rate of 22.9 percent.

Prices also enjoyed substantial growth to close out the second quarter, buoyed by tighter inventories and impeccable demand. NAR data highlighted that median existing house prices climbed 23.4 percent year-over-year in June to $363,300.

When it comes to housing stocks, the months of inventory clocked in at 2.6 months, down from 3.9 months at the same time a year ago. This is an important measurement for industry observers because it gauges the number of months it would take to exhaust supplies at the current rate of sales activity. But fresh supply could be coming to the U.S. market.

The Department of Commerce reported that housing starts jumped 6.3 percent to a seasonally adjusted annual rate of 1.643 million units in June. However, because of skyrocketing lumber prices, and labour and land shortages, permits for future home building tumbled 5.1 percent to 1.598 million units.

American economists are cautioning that housing affordability is an intensifying problem in markets across the United States.

“We look for a modest rebound in home sales and new home construction in the second half of the year,” said Sam Bullard, a senior economist at Wells Fargo, in an interview with CNBC. “Demand is not the problem, though affordability is problematic as home prices have soared given exceptionally lean inventory and will continue to be a headwind for the sector for the foreseeable future.”

Now, how does this compare with the Canadian real estate market?

National home sales tumbled 8.4 percent month-over-month in June, according to the Canadian Real Estate Association (CREA). But sales activity remained up 13.6 percent year-over-year. The MLS® Home Price Index, which experts say is a more accurate reflection of housing prices than average or median, rose 0.9 percent from May and 24.4 percent year-over-year.

Inventory remains tight as the number of newly listed residential properties slipped 0.7 percent. The number of months of inventory stood at 2.3 at the end of June, up from the record low of 1.8 months in March. Still, it remains below the long-term average of roughly five months.

The latest data from Canada Mortgage and Housing Corporation (CMHC) found that the annual pace of housing starts slowed down in June, sliding 1.5 percent to 282,070 units.

“While there is still a lot of activity in many housing markets across Canada, things have noticeably calmed down in the last few months,” said Cliff Stevenson, Chair of CREA, in a news release. “There remains a shortage of supply in many parts of the country, but at least there isn’t the same level of competition among buyers we were seeing a few months ago. As these conditions continue to evolve over the summer and fall, your best bet is to consult with your local REALTOR® for information and guidance about buying or selling a home at this stage in the cycle.”

Suffice it to say, both the Canadian and U.S. housing markets are coming back down to earth; welcome news for sidelined buyers who have been eagerly awaiting a cooling of the market. But there are still some concerning trends on each side of the North American border.

Concerning Trends in U.S., Canada Housing Markets?

The U.S. and Canadian real estate markets each have individual and comparable trends that deserve a spotlight as we embark upon the second half of 2021.

Subprime Mortgage Crisis … in Canada?

The subprime mortgage crisis in 2008 was one of the chief contributors to the Great Recession. More than a decade later, Canada is facing some subprime mortgage fears that some are calling an “accident waiting to happen.” A new analysis from Bloomberg Economics found an alarming trend of more Canadian borrowers taking on zero-down mortgages. Although there are plenty of regulations that prevent subprime borrowing on a massive scale, the Bank of Canada (BoC) is warning that the quality of home loans is deteriorating, citing a survey of loan officers that revealed they have loosened mortgage lending conditions in the last three quarters. Since many are anticipating negative homeowner equity for the most recent homebuyers, concerns are mounting among industry observers.

A Housing Affordability Issue

The U.S. and Canada are each suffering from an affordability crisis that is pricing out young families from achieving the dream of home ownership. In Canada, the average price of a home is approximately $740,000, with valuations in the key markets of Toronto and Vancouver venturing north of $1 million. Even accumulating a down payment is taking longer for many households: roughly eight years. Moreover, people cannot simply relocate to a small town or a rural community since prices in these areas have soared to all-time highs.

South of the border, under-building has led to an “acute shortage” of housing, according to the National Association of Realtors, which published a study titled “Housing Is Critical Infrastructure: Social and Economic Benefits of Building More Housing.” It is estimated as much as 6.8 million housing units are missing from nationwide inventories.

NAR is calling for a “once-in-a-generation” response, while other housing professionals argue that the sector needs policy tools and new supply.

“The common means of solving Canada’s real estate challenges, such as the introduction of the stress test, solely addresses demand rather than finding a way to ensure there are enough homes for all Canadians. Unfortunately, we have yet to tackle the real issue behind housing affordability in Canada, which is supply. We share the RE/MAX opinion that addressing supply must be our top consideration moving forward,” noted Christopher Alexander, Senior Vice President of RE/MAX Canada, in a news release.

Is the Economy Too Dependent on Real Estate?

Is real estate accounting for too much of the economy’s growth? The BoC explained earlier this year that the housing boom had helped the recovery in the aftermath of the COVID-19 public health crisis. However, new Statistics Canada data in the first quarter revealed that housing investment is swallowing up about half of the economy.

Meanwhile, the Federal Reserve warned that the U.S. economy, particularly following the devastating pandemic-induced meltdown, cannot afford a boom-and-bust cycle in real estate.

“It’s very important for us to get back to our two-per-cent inflation target but the goal is for that to be sustainable,” Eric Rosengren, the president of the Boston Fed, told the Financial Times. “And for that to be sustainable, we can’t have a boom-and-bust cycle in something like real estate. I’m not predicting that we’ll necessarily have a bust. But I do think it’s worth paying close attention to what’s happening in the housing market.”

Courtesy RE/MAX Canada

One in three Canadians considering “workarounds” to buy a home amidst declining housing affordability in Canada, supply shortages

• Of those Canadians who are considering alternative ways to become homeowners, 54% are Millennials and Gen Z

• 15% of Canadians reported they were able to grow their savings during the pandemic and plan to use these funds as a down payment on a home in the next six to 12 months

• Winnipeg and Regina continue to be two of the more affordable markets in Canada year-over-year, with an average selling price below $350,000

• St. John’s tops the list of most affordable cities in 2021, with an average selling price at $307,619

• 45% of Canadians agree that a national housing strategy would improve their ability to own a home

In a new report exploring housing affordability in Canada in 2021, RE/MAX found that one in three (33%) Canadian homebuyers is exploring alternative options to help them get a foot into the housing market. These include renting out a portion of a primary residence (21%), pooling finances with friends or family to purchase a home (13%) and living with like-minded neighbours in a co-op/shared living arrangement (7%).

According to a Leger survey commissioned by RE/MAX, 42% of Canadians said the high price of real estate was a barrier to entry into the market. This is up just 4% over last year – surprising, given the consistent price growth experienced by housing markets from coast to coast over the past year. Among prospective homebuyers, millennials and Gen Z are most likely to consider alternative regions and communities, and/or financing options to keep affordability in play.

Key barriers impacting personal housing affordability in Canada, according to consumers:

• a shortfall in salary (26%)

• the fear of rising interest rates (18%)

• the fear of being “house poor” (18%)

• lack of steady full-time employment (16%)

• current levels of household debt (11%)

• the mortgage stress test (11%)

Regional Housing Affordability in Canada

Canada’s two largest cities, Toronto and Vancouver, have struggled with significant housing affordability challenges, mainly due to low supply and high demand spurred on by low interest rates. Unsurprisingly, both cities have remained at the bottom of the list year-over-year when it comes to housing affordability in Canada. At the other end of the spectrum, St. John’s, NL has replaced Regina, SK as the most affordable Canadian city to buy a home in 2021.

Calgary Housing Affordability Trends

Calgary ‘s most popular type of property for first-time homebuyers in 2021 has been single-detached homes, which has not shifted year-over-year. Typically, buyers in Calgary are willing to push their budgets modestly to attain the home they desire.

When it comes to factors that are influencing affordability in the region, changing interest rates and employment/economic conditions and likely to have a positive impact. On the flip side, tightened lending rules, low or diminishing housing supply, continued interest in larger homes putting pressure on supply; and demand from out-of-province/out-of-region buyers are believed to negatively impact affordability in the area.

The three most affordable neighbourhoods in Calgary are North East Calgary, South East Calgary, and regionally in the province of Alberta, Airdrie, Cochrane and Strathmore. The least affordable neighbourhoods in Calgary are Britannia, Bel-Aire and Upper Mount Royal.

An alternative to individual homeownership that has become relevant in Calgary since the start of 2021 is using a portion of a principal residence as an income property, to supplement monthly mortgage payments and offset bills.

Calgary is a lot more affordable when compared to other major cities in Canada, and it has been in a prolonged weak economy since 2015 which affects the housing market. Some pockets of Calgary are still seeing multiple-offer scenarios, but the trend is price- and location-specific. Overall, Calgary has seen a slowdown in activity and price increases recently. Prices are already cooling this summer, which is normal and is expected to continue due to tighter mortgage regulations. Current average sale prices range from $266,868 to $588,541, depending on the property type.

Most Affordable Neighbourhoods to Buy a Home

Short of exploring alternative solutions to find and achieve housing affordability in Canada, those who are willing to expand their boundaries can still find “hidden gem” neighbourhoods with homes at below-average prices. In a wider survey, RE/MAX Canada brokers and agents were asked to identify the most affordable neighbourhoods in the communities they serve. From approximately 300 survey submissions received between June 16 – 30,2021, some of the most affordable neighbourhoods topping the list include:

• Washington Park, Regina, Saskatchewan

• New Waterford, Cape Breton, Nova Scotia

• West Flat, Prince Albert, Saskatchewan

• Bayview, Sault Ste. Marie, Ontario

• Portage La Prairie, Central Plains, Manitoba

Meanwhile, in what are traditionally considered Canada’s most expensive cities to buy a home, this same survey also identified “relatively affordable” neighbourhoods where homes can be purchased at prices below the city-wide average. Some of these neighbourhoods include:

• New Westminster in Greater Vancouver, BC

• Penbrooke, Rundle and Dover in Calgary, Alberta

• Regent Park in Toronto, Ontario

• North End Hamilton, Ontario

• Hawthorne, Carlton Place and Vanier in Ottawa, Ontario

The Interest Rate Effect

The record-low interest rates that first appeared in 2020 have been a “double-edged sword,” presenting an exceptional opportunity for Canadians to get into or move up in the housing market, but also adding fuel to an already hot sector. Yet, with inflationary pressures starting to emerge, interest rates could rise soon, putting pressure on over-leveraged homeowners and slowing consumer demand.

Based on broker insights and external data, as seen within the accompanying RE/MAX Housing Affordability Index, the average monthly mortgage amount across Canada ranges from approximately $950 to $4,268, depending on regional income levels, and a 20-per-cent down payment, amounting to an average percentage of Canadians’ monthly income from 11% to upwards of 50%. This is currently consistent with the majority of Canadians (72%) who feel comfortable allocating less than 50% of their household income toward housing costs, including mortgage payments.

However, concern over declining housing affordability in Canada and specifically the ability to afford a home in the next two years due to rising prices remains, with nearly half (48%) of Canadians sharing this sentiment. This concern significantly rises for younger Canadians (aged 18 – 34), with 71% expressing concern. Unsurprisingly, over half (60%) of this group agrees that a national housing strategy would cool the market and improve affordability.

Buyer Incentives and Future Affordability Considerations

Amidst market challenges, the continued push behind the First-Time Home Buyer Incentive (FTHBI) has provided Canadians with an effective way to access a suitable down payment. Of those who recently bought their first home, 35% took advantage of the FTHBI; however, of those who did not, 31% were unaware of the incentive.

Incentives and regulations put in place to curb or create demand, while advantageous for some, do not address some of the other challenges currently at play that are impacting housing affordability in Canada.

Additional Report Highlights

In an analysis of housing affordability in Canada, the RE/MAX 2021 Housing Affordability Report finds that:

St. John’s, Regina, Winnipeg, Edmonton, Ottawa, Calgary and Windsor rank as the top affordable regions (see index), based on average sale price, monthly household income, and percentage allocated towards a mortgage

Those who have been able to afford homeownership (56% of Canadians) are significantly more likely to be aged 35+ (64%), live in a rural (70%) or suburban (60%) area, and earn $80k+ per year (74%).

Of those who are not able to afford home ownership (41% of Canadians), they are significantly more likely to be aged 18-34 (60%), live in an urban area (48%), and make less than $40k per year (70%).

When it comes to finding ways to own a home, Gen Z and Millennials claim that:

- 54% would consider buying a home in a different neighbourhood or region, just to be able to enter the housing market.
- 53% are only able to own a home with the help of their parents or other family members.
- 20% claim that owning a home has meant that they’ve had to move to another city within their province given affordability challenges.
- 17% have moved or purchased a home in entirely new provinces because it was more affordable than their previous place of residence.
- Canadians in Western Canada are more likely to want to get creative in their home-buying efforts (39%), as compared to Ontario and Atlantic Canadians (33%).

About the RE/MAX 2021 Housing Affordability Report

The RE/MAX 2021 Housing Affordability Report includes data and insights from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. Average sale price is reflective of all property types in a region and varies depending on the region.

About Leger

Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,539 Canadians was completed between June 4-6, 2021, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 percent. A probability sample of the same size would yield a margin of error of +/- 2.51 percent, 19 times out of 20.

Housing Affordability Index - click here

Canada’s most affordable neighbourhoods - click here

Courtesy RE/MAX Canada

 

City of Calgary, August 3, 2021 –

July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.

With 6,678 units in inventory in July, the months of supply rose to just under three months. These gains are leading to far more balance between sellers and buyers. However, there is a significant variation between product type, as the months of supply ranged from two months in the detached sector to nearly six months in the apartment condominium sector.

“Over the past several months, we have seen housing market conditions trend toward more balanced conditions,” said CREB^® Chief Economist Ann-Marie Lurie. “This eased some of the upward pressure on prices, as prices are starting to stabilize following steep gains that occurred in the first half of the year.”

Benchmark prices in the city reached $460,100, slightly higher than last month and nearly 10 per cent higher than last July. Price growth has been the highest in the detached sector, which currently sits 11 per cent above last year’s price and has finally recovered from previous highs in 2014.

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HOUSING MARKET FACTS

Detached

Both sales and new listings trended lower relative to last month, but remained higher than last year’s levels. Sales are still at record levels, but with only 1,822 new listings coming onto the market in July, the sales-to-new-listings ratio remained relatively high at 78 per cent.

Slower sales relative to the inventory levels also caused the months of supply to trend up. With just over two months of supply conditions remain relatively tight. However, this is an improvement relative to the past five months. Activity also varies by price range, with homes priced below $500,000 still facing tight market conditions with less than two months of supply. 

Prices continued to trend up this month over last month. At a city-wide benchmark price of $539,900, prices are 11 per cent higher then last year’s levels. Prices have been on the rise in every district, but it is only the City Centre that is reporting prices below the 2014 high.

Semi-Detached

While sales activity did slow in some districts compared to last year, overall year-to-date levels remain at historic highs. While new listings are higher than last year’s levels, they trended down enough compared to last month to cause a slight monthly decline in inventory levels. With 209 sales and 577 units in inventory, the months of supply rose to nearly three months. This is still lower than levels recorded last year, but much higher than the extremely tight conditions recorded over the first half of the year.

Benchmark prices continue to rise over last month, but like other property types, at a slower pace. Nonetheless, at a benchmark price of $428,400 in July, levels are nearly ten per cent higher than last year and have recovered from previous highs. While price gains have occurred across most districts, on a year-to-date basis, they have not yet fully recovered from previous highs in the City Centre, North East, South and East districts.

Row

Following 351 sales this month, year-to-date sales are sitting at record highs. While the pace of sales growth is slowing relative to earlier in the year, so too is the pace of new listings coming onto the market, prevented any further monthly inventory gains.

With inventory levels over 1,000 units and slightly slower sales this month compared to last, the months of supply pushed up above three months. While levels are lower than anything recorded last year, the improved choice is slowing the monthly price gain. However, prices remain nearly 11 per cent higher than last July.

Compared to last year, prices have improved across every district, with gains ranging from a low six per cent in the northwest to a high of 20 per cent in the east district. Despite the gains, prices continue to remain well below previous highs.

Apartment Condominium

Thanks to reductions in new listings, inventory levels trended down over the previous month yet remain relatively high with 1,918 units available. While trending down relative to last month, July sales are still far better than any July over the past six years. However, the higher inventories relative to sales did contribute to the monthly rise in the months of supply, which sits just below six months.

Additional supply choice is having some impact on prices depending on the district. While prices have stalled or eased slightly in most districts compared to last month, strong gains still occurred in the south and southeast districts. While prices remain higher than levels recorded last July, they remain far from price recovery.

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REGIONAL MARKET FACTS

Airdrie

After posting another record month, year-to-date sales totaled 1,510 units. With only seven months of data, Airdrie sales are just shy of the annual record high of 1,695 set in 2014. Relative affordability and flexible work arrangements are some of the factors contributing to the surge in demand. At the same time, the supply in the market cannot keep pace. Inventories continued to trend down relative to previous months and compared to last year.

Strong sales and low inventories kept the months of supply just above one month. Persistent sellers’ market conditions resulted in further price gains. Price growth remains strongest in the detached sector, as benchmark prices reached $435,300 in July, nearly one per cent higher then last month and 15 per cent higher than July 2020 figures.

Cochrane

July sales remained relatively strong, contributing to the record setting pace so far this year. While conditions continue to favour the seller with under two months of supply, there was some inventory growth in July. Thanks to some gains in new listings relative to sales, inventory levels trended up this month. Despite some supply gains, total inventory levels remain at some of the lowest levels recorded in July since 2007.

Persistently tight conditions continue to impact prices in the area. The strongest gains occurred in the detached sector, where benchmark prices pushed above $500,000 in July, over two per cent higher than last month and 17 per cent higher than last July.

Okotoks

While sales in July improved relative to last year’s levels, they have been trending down compared to levels seen earlier in the year. This is partly due to further reductions in supply. There were 73 new listings that came on the market in July, keeping the sales-to-new-listings-ratio elevated at 96 per cent and supply levels eased to 109 units. Inventories are at the lowest July seen since 2006 and with less than two months of supply, the market continues to favor the seller.

Like other areas, persistently tight market conditions continue to impact prices. This is primarily driven by price growth in the detached sector. In July, detached home prices reached $511,800, nearly one per cent higher than last month and over 13 per cent higher than last year’s levels. 

 

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

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