January 2021 Market Snapshot

The first month of this year was a hot one for the real estate market (contrary to the snowfall we are getting today). January sales were the highest we've seen in the first month of the year since 2014. "Discount lending rates are exceptionally low, which is likely attracting all types of buyers back into the market," according to CREB's very own chief economist Ann-Marie Lurie. We are starting to see more balanced market conditions in some property types; some areas in the city are actually in a sellers' market. With more buyers on the hunt for their first or next home, January showed 4,035 units in inventory which is the lowest it's been in the past 6 years.

Sellers! It is your time to shine. Increased sales activity in January results in limited supply for homes priced under $500,000. Year-end 2020 ended on a strong note and the momentum in sales continues this month. Compared to January last year we are seeing an increase of almost 42% in sales this month. Detached homes are also selling about 13% faster than they did in January 2020. In my own experience, I had clients in competing offer situations and also needing to write backup offers last month; some homes are conditionally sold after less than 5 days on market. We will likely see prices adjust accordingly in the coming months, that is to say, that prices will likely be on the rise. I have been telling my buyer clients to be ready to pull the trigger. Have your finances lined up ad be prepared to move quickly when you find a property you love. 

January was a strong month for semi-detached homes as well. Year-over-year sales increased by over 67%. We were seeing a shortage of semi-detached homes at the end of 2020 and although there were more new listings in January, the inventory levels are still lower than they were this time last year, despite the influx of innercity infills and other new developments. Price movement varied depending on which part of the city you are in. There were strong price gains in North and Southeast communities, while the West district lagged behind. In fact, prices in the West actually moved in the opposite direction due to higher levels of inventory in this district.

Let's switch hears a bit for this product type. Row townhomes saw modest gains in sales activity but unlike the detached and semi-detached segments, we are not seeing as much of the hot demand with inventory flying off the shelves in less than a week. There were more new listings this month causing a lower absorption rate (sales to active listings ratio). This picture resembles a more typical January that we are used to seeing in other years, as far as market statistics go. Prices across Calgary were relatively stable as opposed to last month. That being said, if we put specific districts under the microscope, row townhome price movement varied depending on where we look. For example, City Centre, West and East districts saw price gain, while North and Southeast districts fell by more than 3%.

I was not kidding when I said January sales have been the highest since 2014. Apartment condominium sales rose as well and January sales levels have been the best we've seen in the last 6 years. There are still elevated inventory levels relative to sales so prices still remain well below previous years. City Cente, West, and Southeast districts continue to fall as oversupply persistsDriving around the city, you will likely notice many new developments throughout the city. These new projects will also likely contribute to rising inventory on the horizon. Though modest, there were price increases in the Northeast, East, and South districts. Downsizers, now is your chance to sell your home and move into something that is easier to maintain.  The coming months are a great time for you to think about parting ways with your big house, and start looking at some smaller, more manageable spaces. There are so many options!

I know I've probably beat this one to death, but January was definitely a strong month; much stronger than other January's that we've seen. This month had some positives for everyone depending on the type of home and the area in the city. Fingers crossed these trends continue into the rest of 2021!