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.

The Viani Real Estate Group is proud to announce that for the first six months of 2021 we have assisted over 100 clients in achieving their real estate goals.

These transactions have included helping families find new homes so they can continue to grow, first time home buyers confidently navigate the real estate market, assist business owners in relocating their businesses, individuals and families who have upsized or downsized and even brokered the sale of one of Calgary's most iconic venues, the Ranchman’s Cookhouse & Dancehall Inc.

City of Calgary, July 2, 2021 –

Calgary’s housing market is showing few signs of letting up, as sales reached 2,915 units in June – a record high for the month

“It is taking time for supply to catch up with the demand in the market,” said CREB® chief economist Ann-Marie Lurie.

“Through the early spring market, many buyers did not have a lot of choice, but the recent improvements in supply are providing more options for those purchasers and supporting the strong sales we continue to see in June. At the same time, gains in inventory are taking some pressure off the market as it starts to trend towards more balanced conditions.”

New listings in June totalled 4,135, the second-highest level ever recorded for the month. This caused inventories to trend up to 6,918 units. While this is higher than longer-term averages, it was balanced by strong sales and the months of supply remained relatively tight at 2.4 months. However, this is still an improvement from earlier in the year when the months of supply was below two.

As the market moves toward more balanced conditions, we are also starting to see the pace of price growth slow. The benchmark home price continued to trend up in June, but the monthly gain slowed to less than one per cent. While the pace of growth is slowing, as of June, the benchmark price was 11 per cent higher than levels recorded last year.

HOUSING MARKET FACTS

Detached

Despite some modest improvements in inventory levels, strong sales in June have kept the detached sector of the market firmly in sellers’ market conditions.

With a sales-to-new-listings ratio of 76 per cent and the months of supply below two months, benchmark home prices continue to rise. The unadjusted detached benchmark price totalled $537,200 in June, nearly one per cent higher than last month and 13 per cent higher than last year’s levels.

Despite the sellers’ market conditions in the detached sector, there is some variation depending on location. The districts with the strongest demand relative to supply are the North, North West, South, South East and East districts. Each of these districts has less than two months of supply in June, which is well below longer-term averages. The tightness in these areas has also resulted in the highest year-over-year price gains

The City Centre has not experienced the same tight conditions as other districts and is the only district where detached prices have yet to recover from previous highs.

Semi-Detached

The pace of semi-detached sales growth is showing some signs of slowing, but year-to-date sales remain at record highs. New listings have also reached new highs so far this year. However, the growth in sales has outpaced the growth in new listings, preventing any significant shift in inventory levels.

With 592 units in inventory in June, levels have trended up from the start of the year. However, with the months of supply currently sitting at two-and-a-half months, conditions continue to favour the seller.

The persistent sellers’ market conditions have caused benchmark prices to trend up, reaching $427,000 in June. Gains have occurred across all districts so far this year, but the amount of growth has ranged from a low of less than five per cent to a high of nearly 10 per cent. Despite these gains, only the North, West and South East districts have seen prices recover to previous highs.

Row

After the first half of the year, row sales totalled 2,045, their highest mark since 2007. Those sales have been met with record-high new listings. This has caused inventories to trend up over recent months to levels higher than what we typically see at this time of year.

The higher inventories have not been a problem, as they’ve been balanced by strong sales. The month of supply remains below three months and this sector continues to favour the seller. Recent gains in the months of supply are helping the market move toward more balanced conditions, but it is too soon to see the shift impact pricing.

In June, citywide row prices totalled $299,300, one per cent higher than last month and nine per cent higher than last year’s levels. Prices have improved across most districts, but they remain well below previous highs.

Apartment Condominium

Recent price gains have encouraged more people to sell their condominiums this year, causing both new listings and overall inventories to increase relative to the previous year. At the same time, relative affordability has supported sales totals that have improved from the exceptionally low levels recorded over the previous six years.

The result has been inventories that remain elevated compared to historical levels, but strong sales have helped bring the months of supply down to levels more consistent with balanced market conditions.

The balanced conditions have been supporting some price recovery in the market. Prices have trended up over the first half of the year and on a year-to-date basis they currently sit nearly three per cent higher than last year.

Prices have risen across all districts, but the largest price gain occurred in the West district. However, overall, prices remain nearly 15 per cent below previous highs.

REGIONAL MARKET FACTS

Airdrie

June sales totalled 247 units, contributing to the record-high total recorded so far this year.  Over the past decade, Airdrie has recorded annual average sales of 1,300 units, a level that has already been surpassed in 2021 with only six months of activity.

Given the exceptionally strong demand, it is not surprising that supply can’t keep up. New listings in June totalled 274 units relative to the 247 sales, keeping the sales-to-new-listings ratio extremely high at 90 per cent. With only 318 units available in inventory, the months of supply remained slightly above one month.

Persistently tight conditions continue to weigh on prices, especially for detached homes, which have recorded the largest price jump. In June, the detached benchmark price was $432,700, nearly two per cent higher than last month and more than 15 per cent higher than prices recorded last June.

  

Cochrane

Thanks to another record month of sales, year-to-date sales topped 725 units. This is just shy of the annual record high that occurred in 2014, when 754 sales occurred over the entire year. Improving sales are far outpacing growth in new listings, causing inventories to fall to the lowest levels recorded in June since 2007. With 1.3 months of supply, conditions continue to favour the seller.

After several months of significant monthly prices gains, there was a short pause in the monthly growth in June. However, on a year-to-date basis, prices are more than four per cent higher than levels recorded over the same period last year.

Okotoks

With another month of strong sales, year-to-date levels remained at record highs with 480 units.

Like other areas, Okotoks has struggled to maintain enough supply to keep up with demand. Inventory levels have trended up slightly over the past few months, but as of June, they remain nearly 50 per cent lower than long-term averages for the area.

Record sales and low inventory have caused the months of supply to remain just above one month. The low level of inventory relative to sales has persisted in this market since the third quarter of last year, causing steady gains in prices, especially for detached homes

As of June, the detached benchmark home price rose to $508,200, nearly 14 per cent higher than last June and nearly seven per cent higher than prices recorded at the start of the year. Prices are also rising for other property types, but they remain below previous highs.

 

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Canadians opt for more affordability and new lifestyle, flocking to recreational property market.

Regional Market Highlights

Western Canada

A majority of Western Canada’s recreational markets are sellers’ markets, including Whistler, Shuswap, Canmore, Tofino, Ucluelet, Central Okanagan and Interlake Region of Manitoba. Most regions are seeing multiple offer scenarios, driving prices up for most property types. Out-of-province buyers – typically from Ontario – are looking to Canmore in pursuit of recreation and achieve greater work-life balance. With work-from-home conditions, demand has spiked and prices of non-waterfront properties in Canmore have increased by 26 per cent since 2019. Out-of-province buyers from the Lower Mainland and Vancouver Island are eyeing Tofino and Ucluelet, as well as out-of-country buyers from California. Both are looking to the region for the desire to relocate from urban centres and for a secondary residence.

With low inventory in Manitoba’s Interlake Region, prices of waterfront properties have increased by 43 per cent since 2019. Most activity is driven by buyers from within the province, typically families, millennial couples or investors looking for an affordable option outside of urban centres. With most buyers working from home in the region, good Wi-Fi access has become a top priority.

Ontario

All of Ontario’s recreational markets are sellers’ markets, with low inventory and high demand. These regions include Bancroft, Barrie-Innisfil, Haliburton, Kenora, Muskoka, Niagara region, Parry Sound, Peterborough and The Kawarthas, Prince Edward County, Sudbury and Thunder Bay to name a few.

Young families, many from the GTA and Hamilton, are now looking to Muskoka after feeling priced out of urban centres. This is impacting supply and affordability in the region, with average sale price of waterfront properties in Muskoka anticipated to increase by 20 per cent this year. Prince Edward County is seeing an uptick in buyers with work-from-home allowances, as well as retirees, who are considered to be driving the most market activity in the region.

In Niagara region, the average sale price of waterfront properties reached $1,546,561 in the first four months of 2021, a 77-per-cent increase from an average sale price of $875,036 in 2019. Strong price growth since 2019 was also evident in Niagara’s water-access properties, which increased 160 per cent, from $506,700 in 2019 to $1,317,500 in 2021. Continued price growth for these property types is anticipated through the remainder of the year, by nine per cent and eight per cent, respectively. Families looking for a secondary residence are the key drivers of market activity in the region. Strong interest from this cohort is anticipated to continue, with Niagara’s close proximity to Crystal Beach, Port Colborne, Niagara Falls and Grimsby.

Atlantic Canada

In Atlantic Canada, recreational property markets are experiencing similar conditions as local residential markets and other recreational markets nation-wide, with low inventory and high demand putting upward pressure on prices.

Charlottetown is a sellers’ market, with sales being driven by out-of-province buyers. A local RE/MAX broker reports that the region has become more attractive thanks to the province’s positioning as one of the safer communities in Canada, based on the number of COVID-19 cases and hospitalizations. This has put pressure on the region’s inventory, which was already struggling to meet demand. In 2021, recreational property prices in Charlottetown are anticipated to increase by five percent for waterfront properties and seven percent for non-waterfront properties.

The Halifax region is also experiencing sellers’ market conditions, with low inventory and high demand. Market activity is being driven by out-of-province buyers, with increased interest resulting from the pandemic and strict lockdown measures in other parts of Canada, along with increased flexibility to work remotely. The average sale price of waterfront properties in Halifax is $698,104, a 53-per-cent increase from 2019 ($456,515). In 2021, the average sale price of waterfront properties is projected to increase by seven percent.

New Brunswick is also experiencing sellers’ market condition. For example, recreational property sales in St. Andrews are being driven by out-of-province buyers, thanks to the region’s lower average sale price compared to large urban centres. Low inventory is putting an upward pressure on waterfront properties, average sale price saw an increase of 132 percent since 2019, rising from $320,000 to $741,650. The average sale price of waterfront properties is anticipated to increase by five percent over the remainder of the year.

Unsurprisingly, affordability remains the top buying criteria for 41 percent of Canadians who are in the market for a recreational property, followed by proximity to water or waterfront, amenities and good Wi-Fi. With demand for recreational properties anticipated to remain strong for the remainder of the year, lifestyle factors typically found in city homes, such as restaurants, Internet connection and office space are expected to remain a priority among buyers.

Courtesy - RE/MAX Western Canada 2021

With 2,989 sales, housing market activity hit a new May record.

Despite strong levels of sales, they did trend down relative to last month. Additionally, there were 4,562 new listings, causing seasonally adjusted inventory levels to increase over last month.

"The recent gains in prices have encouraged more homeowners to list their homes and take advantage of the current market situation," said CREB^® chief economist Ann-Marie Lurie.

"However, the inventory gains are still not enough to offset the demand growth and the market continues to favour the seller. Prices are rising, but they are still recovering in our market from previous highs in 2014. Only detached and semi-detached home prices in certain districts and communities have recovered to the level of previous monthly highs."

The months of supply did trend up slightly this month to just over two months, but it was not enough to halt the upward pressure on prices. The unadjusted benchmark price in May reached $455,200. This is one per cent higher than last month and nearly 11 per cent higher than prices recorded last year.

Sales have been rising across all product types, but homes priced above $600,000 represent a larger-than-usual share of all sales. The upper end of the market only reflected 16 per cent of city sales last May, compared with this year where it now reflects nearly 26 per cent of all sales. 

 

HOUSING MARKET FACTS

Detached

Seasonally adjusted figures show detached home sales trending down slightly from last month, but levels remained the best recorded for May.

Due to relatively strong new listings, inventories are trending up relative to both the previous month and the previous year. This caused the months of supply to increase to 1.7 months and reflects some easing of the extremely tight market conditions seen over the past several months. However, the detached market continues to favour the seller and prices continue to rise.

Detached home prices rose across each district, with the largest year-over-year gains occurring in the North, North West and South East districts. 

The gains in prices have been supporting price recovery for detached homes. As of May, only the City Centre and North East districts have seen prices remain below previous highs.

Semi-Detached

Year-to-date sales totalled 1,169 units, which is the strongest five-month total on record for this product type. Despite some adjustments in new listings, the sales-to-new-listings ratio rose to nearly 75 per cent.

Overall, the months of supply remained below two months for semi-detached housing, supporting further price gains on a monthly and year-over-year basis.

Benchmark prices have seen double-digit price gains compared to last year's levels in all districts except the City Centre.

The highest gains have occurred in the South East, South and North districts. While the city total is showing a recovery in price based on monthly levels, there are several districts where prices continue to remain below their previous highs.

Row

Inventory levels trended up compared to last month and levels seen last year. This is due to further gains in new listings relative to sales and caused the months of supply to rise to 2.5 months.

However, conditions continue to favour the seller, which is causing further price gains this month. The unadjusted benchmark citywide price totalled $296,400. This is a one per cent increase over last month and nearly eight per cent higher than last year.

Prices continue to improve across most districts, but they remain well below previous highs. Depending on the location, prices remain anywhere from five to 20 per cent below previous highs.

Apartment Condominium

Year-to-date condominium sales totalled 1,659 units.

This is highest number of sales seen since 2014. Despite the improvements, seasonally adjusted sales did trend down relative to last month.

Recent price increases are likely supporting some of the strength in new listings. While levels have been trending down compared to a few months ago, they do remain elevated based on what we typically see in May. As the sales-to-new-listings ratio eased to 48 per cent, we saw inventories trend up this month, pushing the months of supply to over five months.

Slightly higher supply levels compared to sales did impact the pace of monthly gains in the benchmark price. However, May prices remain nearly five per cent higher than last year's levels. Price movements also varied depending on location, but no district has seen prices recover to previous highs.

Currently, the citywide price remains nearly 16 per cent below 2014 levels.

REGIONAL MARKET FACTS

Airdrie

Sales activity in Airdrie continues to increase, trending up over last month and hitting a new May record high. Meanwhile, new listings have not kept pace and trended down from last month.  

This has caused the sales-to-new-listings ratio to rise to 95 per cent this month, the highest level seen since the end of last year. This caused inventory levels to trend down to the lowest levels seen in May since 2014.

Unlike Calgary, there has been no lull in the Airdrie market and the months of supply fell to just over one month, causing further price gains. 

 

After 11 consecutive months of increasing prices, the May benchmark price totalled $379,000, nearly 12 per cent higher than last year's levels. While prices have not recovered across all product types, detached home prices have hit a new high at $425,100.

Cochrane

Sales this month are at record levels for the month, but they did trend down compared to last month. However, this could be related to the low levels of new listings in contrast to high market demand. The sales-to-new-listings ratio dropped when compared with last month, but at 82 per cent it did little to change the inventory situation in the market. There were only 180 units in inventory and the months of supply was 1.5 months. This is well below levels typically seen this time of year.

Persistent sellers' market conditions are causing further price gains in the market. The unadjusted benchmark price rose to $451,700 in May. This is nearly three per cent higher than last month and over nine per cent higher than last year's levels. This also reflects a full recovery in prices, fueled by the detached and semi-detached property types.

Okotoks

Year-to-date sales in Okotoks are at record levels. New listings have also been generally on the rise, but this has not been enough to push the market out of sellers' market conditions, which continue to push prices upwards.

The unadjusted benchmark price rose to $483,400 in May. This is a significant gain over last month's price and is nearly 14 per cent higher than last year's levels.

With 12 consecutive months of price increases month over month, prices in this market have recovered relative to previous highs.

However, this is primarily driven by the detached properties in the market.

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

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On June 1, a tougher mortgage qualifying rate came into effect in Canada, this qualifying rate, also known as the “benchmark” or “stress test” affected homebuyers’ purchasing power by reducing the amount of mortgage they can qualify for.

A mortgage stress test is a way of determining exactly how much a home buyer can afford (and under what circumstances). If their income was reduced or they lost their job, could they still afford to make the mortgage payments? What if interest rates were to spike or they needed to refinance their home?

While some believe the government’s choice to stiffen the stress test is to help cool hot markets it is more likely a foreshadowing of mortgage rate (contract rate) increases in the near future.

This type of check and balance planning is important. Interest rates fluctuate, as do home prices. A homebuyer knowing they can still afford to pay their mortgage if interest rates increase is important, and could affect the kind of home they decide to buy.

Since 2018, all Canadian home buyers getting a high-ratio (putting less than 20% downpayment) mortgage have been subject to a mortgage stress test, the test now applies to all mortgages (high-ratio or otherwise). The mortgage stress test requires banks to check that a borrower can still make their payment at a rate that’s higher than they pay.

When a home buyer applies for a mortgage, they will be offered a contract rate (the rate your mortgage payments will be calculated on) however they will need to qualify at the qualifying rate which is higher than their contract rate.

On June 1, the qualifying rate increased from 4.79 percent to 5.25 percent (or 2% higher than your contract rate, whichever is higher) and all mortgages high-ratio or otherwise must now use these new stress test numbers.

A tougher stress test means potential buyers with a higher debt to income ratio won’t be allowed to borrow as much, ultimately helping to protect the market if interest rates increase.

OSFI – Canada’s financial regulator – said it will review the minimum qualifying rate on an annual basis.

Ultimately for home sellers, this could lead to fewer buyers, if the stress test decreases the amount homebuyers can mortgage and therefore afford the market could see fewer homebuyers.

As a home buyer, they must check with their bank or mortgage broker to see how the new stress test will affect their ability to purchase a property. If a homebuyer can no longer qualify for the payments they were previously approved for they may need to weigh their options, save a larger down payment and defer the purchase or choose a more affordable home.

The June 1 change to the qualifying rate means on average home buyers will lose 4% - 5% of their purchasing power (the amount they can afford to purchase).

There were 3,209 sales in April, a new record high for the month, as Calgary's housing market continues to bounce back from the pandemic lows recorded in 2020.

"Despite entering the third wave of COVID-19, there is more optimism of economic recovery when the economy re-opens," said CREB^® chief economist Ann-Marie Lurie.

"However, the recent surge in home sales could be a result of potential buyers wanting to enter the market before any further changes occur in prices, interest rates and lending policy. This could erode some of their purchasing power."

Recent price gains and tight market conditions have also encouraged many sellers to list their home this month. However, demand was strong enough to absorb the additional supply, ensuring the market continues to favour the seller. With 4,670 new listings coming onto the market in April, inventory levels trended up relative to last month and last year. With the elevated sales, the months of supply remains below two months.

Persistently tight market conditions are causing significant upward pressure on prices. For the second consecutive month, the unadjusted benchmark price rose by more than two per cent compared with the previous month and more than nine per cent compared with last year's levels.

While sales improved across most price ranges, product priced above $600,000 represented 25 per cent of the sales that occurred this month. This is a significant increase from last year when they only represented 12 per cent of sales. The shift in distribution is causing both the average and median prices to record double-digit year-over-year price gains.

HOUSING MARKET FACTS

Detached

Detached homes hit a new record high for the month with 2,046 sales in April. Gains in new listings helped support stronger sales, but they did little to ease the persistent sellers' market conditions. The months of supply remained well below two months in this segment, which is contributing to a steady climb in prices.

As of April, the benchmark price rose to $529,100. This is nearly 11 per cent higher than last year and more than $30,000 higher than levels recorded at the start of 2021. The recent gains were enough to push the benchmark price to a new high, reflecting full price recovery from 2014 levels.

Strong price gains occurred across most districts in the city thanks to persistently tight conditions. However, the pace of price adjustments did vary depending on location. The City Centre district has seen the slowest rebound and prices remain nearly seven per cent below previous highs.

Semi-Detached

Following several months of strong sales, year-to-date sales reached record highs in April with 888 sales. This is the only property type to reach record highs based on year-to-date figures. Gains occurred across every district and price range. Like the other sectors, gains in new listings were not enough to move the market out of sellers' conditions, as the months of supply remained below two months.

The tight market conditions supported price growth across all districts, with the strongest year-over-year gains occurring in the North, North West, and South East districts. In April, year-over-year price gains in these districts were above 12 per cent, which was enough to support new monthly record-high prices.

Row

After the first four months of the year, row sales totalled 1,217 units. This the best start to the year since 2007, and well above long-term averages.

New listings in this sector have also been on the rise, causing inventories to trend up. Supply has risen above levels recorded last April, but strong sales compared to inventory levels have caused the months of supply to remain just above two months.

This is significantly lower than the longer-term average, which is closer to four months. While these conditions have only persisted over the past three months, prices have been slower to climb. As of April, row benchmark prices climbed to $293,400. Prices have been trending up across all districts of the city, but they remain well below previous highs.

Apartment Condominium

Further improvements in April resulted in 1,280 year-to-date sales in this sector, which is the strongest sales seen over the past six years.

New listings also remained high compared to typical levels and inventories continued to rise. There was more inventory in the market, but the improvement in sales did cause further reductions in the months of supply.

In April, the months of supply was just over four months. This is fairly consistent with longer-term trends and reflects the most balanced conditions seen for some time. With less oversupply in the market, prices have been trending up and in April the benchmark price was $251,900. This is more than three per cent higher than last year.

Price improvements did vary by location and it will take some time for prices to recover to previous highs.

For example, there was a two per cent year-over-year increase in the City Centre, where most of the condo sales occur, but prices remain nearly 17 per cent lower than previous highs.

REGIONAL MARKET FACTS

Airdrie

Sales activity remained strong in April, as purchasers took advantage of the gains in new listings this month. The recent rise in new listings has caused inventories to increase relative to the past several months, but it did little to ease the sellers' market conditions that have existed since last year.

Persistent sellers' market conditions placed upward pressure on prices, which as of April sit nearly 10 per cent higher than last year.

Prices started improving last year, but over the past several months the months of supply have been just over one month, contributing to the faster pace of price growth this month.

As of April, the benchmark price was $365,100. This is only slightly lower than record highs, due to lower price figures from the apartment and row sectors. Both the detached and semi-detached sectors have seen prices fully recover to previous highs.

Cochrane

April sales rose again compared with last month's record highs. New listings also remained elevated, but it was not enough to meet the demand, as the 178 sales outpaced the 161 new listings. Inventory fell to 172 units, which is the lowest April level recorded since 2007.

The months of supply dropped below one month in April, which is causing steep price gains. The unadjusted benchmark price in April hit a new record high at $439,300. This is nearly four per cent higher than last month and eight per cent higher than last year's levels.

Okotoks

Improvements in new listings this month were nearly matched by sales activity, keeping inventory low. In April there were 108 units in inventory, which is over 50 per cent lower than typical levels for this month. The low inventory levels and strong sales caused the months of supply to fall to one month.

Like other areas, Okotoks is experiencing strong price growth. In April, the unadjusted benchmark price reached a new record high at $463,000. This is nearly three per cent higher than last month and over 11 per cent higher than prices recorded last year.

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

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