Calgary Real Estate Market Update – December 2021
Shocker!! We had another great month in Calgary & Area Real Estate.
Consistency is the word of the day right now. Ever since July Calgary has been seeing monthly sales numbers of over 2,100. This is unprecedented.
As realtors, we always talk about the seasonal trends that occur and, as a result, advise our clients around them.
This year it’s been different. There has yet to be a cooling off period in our real estate market.
The Sales Summary
We just hit 2,110 sales, That’s the 2nd highest November sales total ever recorded in the city’s history. The only year that was better was way back in 2005.
Here is a 15-year trended sales graph. This November’s numbers were far higher than anything we’ve seen in our recent past.
To put this in a little more context, when comparing to last year our last 7 months of sales have outpaced the entire year of sales for 2020!
It’s simply nutty.
This is occurring across all price ranges and all property types, and literally all districts and satellite markets around Calgary, too.
And, when we look closer at the numbers, the biggest uptick is in the household prices average above the benchmark average. This year a large bulk of sales are happening in the upper price ranges of each individual market.
So, to wrap up the Sales Summary – nothing seems to be slowing things down. There is some indication that this late year pace is a result of home buyers looking to act prior to “presumed” mortgage rate increases but ,between you and I, this would only be a minor bump, not one that would sustain such a high pace. The powers of work here are much greater than just a small interest rate hike.
There is simply confidence in our market from Greater Calgarians. There continues to be increased confidence in our market from Canadians outside of Calgary looking for adventure and affordability. And there’s also interest from abroad, as evidenced by the recent ranking by money.co.uk as the top Canadian city to re-locate to.
So, the Sales Summary is all “Thumbs Up” right now.
The Inventory Story
As we would expect, inventory is doing what it’s seasonally supposed to – dropping month-over-month. We currently sit at 3,922 homes on the market, and this is set to drop to near rock bottom levels throughout the month of December.
Here is the 15 year chart…
This shows a reduction of about 900 homes from 30 days ago.
Now again, without sounding like a broken record, this reduction is not for the lack of trying by Greater Calgarians. Once again, as you can see by this next graph, we have been listing more homes than any other year in our recent history.
“Consistency” is again the word of the day. There are fewer properties on the market for buyers to look at and for sellers to compete against than there was at this time last year. And that applies to in all property types – it doesn’t matter whether it’s detached, semis, rows, apartments or any of the satellite markets.
There is not a single market holding more inventory than there was at this time last year.
And most are seeing drastic reductions of 30%, and even all the way up to 60% less inventory in Cochrane right now.
The Pricing Picture
iWith supply & demand doing what it’s been doing, we can expect only one thing – good news for home values.
The following graph shows blue bars to indicate Total Inventory and green bars for Sales…