February 2021 Market Snapshot

Wild, wild west! This segment is the talk of the town. There was an increase in sales across all price brackets but because of the limited selection, a low ceiling was set for sales gains. There were some sellers taking advantage of the current market conditions but these new listings were not enough to offset the shortage of supply we are seeing right now. We use the term 'months of supply' to measure how many months it would take for the current inventory of homes on the market will sell. In February, months of supply for detached homes fell to under 2 months. In case you missed the memo, it's a seller's market here! Homeowners, reach out to your favourite real estate agent to take advantage of these seller's conditions. And buyers, be ready to make an attractive offer when you find a property you love because there are probably 2 or 3 other buyers that have their eyes on the same home. Keep your finger and the trigger and be ready to pull it!

This property type is also seeing price gains as a result of limited inventory. There are many buyers shifting their focus from detached homes to semi-detached because of the low inventory in that segment. Although to a lesser extent, this sector is also favouring sellers. February recorded the highest sales level in almost 13 years! Much like its sister segment, some semi-detached owners chose to ride the wave and take advantage of the current market. However, the number of new listings fell short compared to the current level of demand. Due to undersupply, the benchmark pricing improved but the gains were not consistent across Calgary. The strong year-over-year increase was in the Southeast and North communities. On the other hand, the West district lagged behind as we saw prices say over 2% lower than 2020 levels.

Market conditions for this property type are not as tight as the previous two segments. We are still seeing some oversupply here but the increased sales levels have helped improve benchmark pricing more than 1% higher than February of last year. This is an appealing segment for many first-time homebuyers and move-up buyers because of the versatility; rows & towns offer a mix of semi-detached spaces with a low-maintenance lifestyle of condos. There are more options for buyers to choose from in this segment and the turnover is not as rapid as the other property types that we've discussed.

It was a good month for apartments too! February apartment sales this month were the highest we've seen since 2014 this time of year. Sales activity was driven predominantly by properties priced under $300,000. Months of supply trended down this February but we are still seeing over 5 months of supply. Even though more people were buying apartment-style condos, we are not seeing the same level of price recovering in this segment because of the persistent oversupply of inventory. The sales activity was not significant enough to balance out the high inventory levels and so benchmark pricing for apartments did not change very much (up 0.12% from January).

I've said it before and I'll say it again, the market is hot. We are on a road of price recovery and although some buyers may not like the sound of that at first, it is a good sign for our economy! Interest rates are low so the cost of borrowing is also low. Sellers are either already listing their homes for sale or getting ready for the spring market. Do not snooze while everyone around you is buzzing about real estate. Reach out to your trusty realtor to talk about where you fit in this picture.