March market momentum! We continue to see increased sales activity and increased price ranges in most categories. In residential homes, we saw almost 3,000 sales in the month of March - that's the best March we've had in 14 years!
This month also marked the anniversary of the first pandemic lockdown in Calgary. It affected people in many ways and we can make some assumptions about buyer & seller motivations. Since many downtown workers have had to switch to home offices, some of them may be looking for a larger home or a home with some office space. Did you get a new furry friend to keep you company during quarantine? They might need a yard or a pet-friendly building. There was very little travelling last year and some of the usual vacationers may have increased savings to think about making some real estate moves. There are a plethora of possible reasons why there is so much demand in the real estate market right now. All of these factors have helped the housing market continue its momentum towards recovery.
DETACHED
The frenzy continues for detached homes. Low inventory + increased demand pushed the benchmark price up by almost 8% from last month. There were more new listings added to the market this month and that gave buyers a bit more selection so total sales increased more than 66% from February. Despite this improvement, inventory is still on the low side relative to previous years. In a market like this, it is best to be PROACTIVE. Sellers - make sure your home is dressed to impress because buyers are always looking hard & patiently (or impatiently) waiting for more selection. Buyers - get that pre-approval and be ready to write an offer when you come across a property you love. Because let's face it there are probably one or two other buyers with their eyes on the same property.
SEMI-DETACHED
Much like its close cousin above, the semi-detached segment is also seeing price recovery. There were more new listings that entered the market this month so total sales trended up as well. However, inventory levels are still lower than in past years. The gap between buyers and active listings further pushed the benchmark price up more than 3% from last month. The direction of prices trended up across the city. No district was left behind on this upward path but the North district takes the lead with an increase of about 10%. Sellers & buyers of semi-detached are making moves quickly too. Homes are selling 40% faster than they did same time last year. You already know what I'm going to say...be proactive about your real estate decisions!
ROWS AND TOWNS
A combination of detached-like space + some condo lifestyle perks, the row townhomes have been lagging behind, but are seeing the market tighten just a tad. For the first time since 2014, the months of supply in this category has fallen below 3 months. It is moving slowly on the road to recovery. Sales activity increased by a whopping 151% since last month. Let's hope the market continues to tighten in this segment so that we continue to see price recovery in the coming quarters.
APARTMENT
The "Most Improved Player (Property Type)" award for March goes to -drum roll- apartments! This segment saw improvements in most metrics this month. Although there were new listings added to the inventory, sales activity also increased over 41% from February. Listings are also moving quicker; apartments are sold after being on the market for an average of 53 days. That's almost 9% faster than they sold same time last year! Benchmark pricing increased to $250,000 which is a 3% year-over-year gain. Sellers can celebrate this small win after experiencing plummeting prices for the last 5 years. The abundance of supply and downward pressure on pricing has created an ideal market for first-time homebuyers and young professionals to get into their first apartment. Buyers are taking advantage of the low interest rates and diving into the real estate market.
Momentum, momentum, momentum. March was a good month for all three property categories. We are in a very fluid market and the tide continues to carry us along for the ride. Q1 of 2021 was hot but can we keep up the temperature? I sure hope so! Last year presented major setbacks for the real estate market. We are not out of the woods yet but it is important to celebrate the small wins. Is buying or selling (or both!) real estate in the books for you this year?
Source: creb.com
