Serving up another market update for you. We are mid-way through 2021 and the real estate market has come a long way. The first half of the year has been a hot & interesting ride - for buyers, sellers, and agents too! I have never seen a market flip from a buyers' market to such a strong sellers' market in such a short amount of time. After many months of buyers hearing "sorry, this property is conditionally sold" from 2-4 different sellers, we may finally be heading towards some more balanced conditions in the near future. Sellers still have leverage in most property types right now but it looks like the gap between supply & demand is starting close a little at a time. Let's take a closer look.
DETACHED
The story about the detached segment continues: the market is still tight. There was a slight increase in inventory in June but the listings were snatched up by eager buyers. Listings were quickly absorbed by the market. We are currently sitting at 2.4 months of supply and although this is an improvement from earlier this year being less than 2 months of supply, we are still sitting in a strong sellers' market.
SEMI-DETACHED
The number of sales for this property type slowed this month compared to May but we are still over 31% higher in sales compared to the same time last year. Growth in sales outpaced growth in new listings so the benchmark price was pushed up 0.78% from May to arrive at $427,000. This segment is still in a strong seller's market but not all parts of the city experienced recovery. Even though semi-detached homes are sitting at 2.5 months of supply, only the North, West, and SE districts have seen prices recover to previous highs.
ROW & TOWNS
Townhomes wrapped up the first half of the year with the highest total sales since 2007. There were record-high new listings so buyers were seeing more selection in this segment. The increased inventory was met with strong sales. While the market here still favours the sellers, the new listings have helped the market move towards more balanced climates. There was a modest gaining benchmark pricing by almost 1%, bringing us to $299,300. There was upwards pressure on prices across most of Calgary but we are still a way's away from previous highs.
APARTMENTS
As usual, apartments sit in its own market and moves at its own pace. Prices are still about 15% below previous highs but it's not all doom & gloom. Prices have consistently been trending up since the year started, which has encouraged more sellers to list their apartments on the market. There is still an oversupply but strong sales in the month of June were up more than 16% from the previous month, and 90% higher than June of last year. Prices have gone up across the city but increased the most significantly in the West district.
The real estate market is still going strong but we are definitely seeing signs of more balanced market conditions. Whether or not these signs will continue through the second half of the year is another story.
Source: creb.com
