Calgary real estate sales on track for a year like no other


Lack of Listings Can Hold Back Full Market Potential

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November was an excellent month for home resales in Calgary, although it did not break any records.

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The year has seen many records set so far, including an all-time sales mark for real estate set in April.

While November wasn’t another record high, it was “still exceptionally strong,” says Ann-Marie Lurie, chief economist at the Calgary Real Estate Board, which released its November data earlier this month.

The Calgary resale market saw 2,110 sales last month, up nearly 49% year-over-year.

If anything was holding the market back from setting another record, it was the lack of inventory, which fell nearly 22% from the same month last year.

“Listings just aren’t keeping pace,” says Lurie, noting that this has helped drive up the price of a home.

CREB figures show that the benchmark price of a home rose nearly 9%, year over year, to $461,000.

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Single-family homes continued to drive demand with 1,246 sales, up about 41% from the same month in 2020. In turn, the benchmark price rose to $542,600, up 11 % year over year.

Still, apartments and townhouses both saw larger year-over-year increases in sales, with growth of 58 and 68 percent respectively. Lurie notes that prices for both sectors have not fully recovered from peaks set in 2014 before the energy downturn that lasted until the onset of the COVID-19 market.

The benchmark apartment price rose just 1%, year-over-year, to $251,700, while townhouses – or townhouses – rose 6% to reach $299,100.

Lurie further notes that the apartment remains the least affected by low inventory amid increased demand. The number of months of condominium supply was over four in November, with the only segment having no less than three months.

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Calgary real estate agent Alex Briones says that while November didn’t set a record, it marked the ninth month of the year in which total deal value topped $1 billion.

“November saw the second highest number of sales since 2005, but this is the first time in November that total sales have exceeded $1 billion,” said the Royal LePage Benchmark real estate agent in Calgary. “November is usually a quiet month for real estate, but we had a wild year that we weren’t expecting.”

In addition, the market seems poised to break the sales record for a year. Established in 2005 with 26,600 sales, this high watermark could be exceeded by the end of 2021.

“We’re at around 25,900 now,” notes Lurie. “Year-to-date we’ve been at record highs, but we’ll see how December goes. »

Generally one of the slowest months, December often sees fewer buyers and sellers due to the holiday season. Still, this year has shown that even the traditionally sluggish months — early winter, summer and late fall — buck long-term trends, Briones says.

“Demand is still good. The challenge is supply,” he says. “The only reason it might slow down is because there aren’t enough choices.”

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