December 2021 Market Snapshot

Records, records, records. 2021 was a record year in home sales and the month of December was no different. We are heading into the new year with some of the tightest market conditions seen over more than 10 years. There are way more buyers than there are homes to go around because of the buzz around overinflation and interest rate hikes. This will start 2022 off with low inventory levels & strong price growth. We'll hear more about this year's forecast from CREB's chief economist at the end of the month so keep your eyes peeled for that. In the meantime, let's zoom in on how December closed out the year.

We are entering the new year with the lowest detached inventory on record. In December, there were only 898 detached homes for sale in Calgary. There were new listings, but not enough to offset sales. Although  we did not see a new sales record, total sales were still more than 40% higher than long term averages; supply challenges probably put a damper on what could have been even stronger sales levels this month. The market conditions the last few months have been tighter than what we were seeing in the spring, causing the benchmark price to rise to $547,300. This is almost a 12% gain from the previous year. The detached sector saw the largest annual price gain at almost 10%, not only recovering from the 2015 annual high, but surpassing it.

Same, same but different. Market conditions in the semi-detached sector have also been very tight due to low inventory levels. Many buyers shifted their focus towards this property type because of the craziness in the detached sector - only to find themselves in a similar position. Because there were few selections for buyers, December sales fell by 36% compared to the previous month. The sales-to-new-listings ratio came in over 127%! So even though fewer semi-detached homes sold, there were still not enough new listings to even out the demand. 

Popularity points for townhomes! In recent months, there were more & more eyes on the townhome sector. Strong sales growth surpassed growth in new listings. Another 3-digit S/NL ratio of 152%. This created a tighter market for this property type, resulting in price growth. Townhomes did not face the same supply challenges as the other sectors in earlier parts of the year so growth was not as prominent during those times. Benchmark price rose by 7.4% compared to December 2020. Even though there were some signs of recovery, we are still about 9% away from previous highs.

The loner of the sectors, as you may have guessed has not been facing the same supply challenges that the other property types have. Condo inventory levels have stayed above historical levels. But there is good news! Record sales in December were enough to shift the sector from a buyers' market to a relatively balanced market. The balanced conditions brought a modest annual increase in benchmark price by almost 3%. Celebrate the small wins!

It's hard to believe that we are already five days into the new year. We are starting 2022 off with an inventory crisis. Sellers - where you at?! If you needed a sign to get your house in the market, this is it. Buyer are hungry, and there is very little competition for you. Get that house cleaned up and stick a sign on your front yard (or call me and I can do it for you... yknow, whichever sounds easier to you).