Up, up, up! That's the direction that most of the real estate market is headed. If the real estate market was a roller coaster, then it seems we've been climbing upward forever and haven't turned down for the plunge yet. We are in the fourth month in a row that the market has been tighter than we saw last spring - and we thought it was crazy back then! Sellers have been seizing the moment and listing their homes for sale so there were more new listings compared to last month but the overwhelming demand still puts sellers in a favourable position for negotiations. Benchmark pricing for all four property types trended up in February; the benchmark price for Calgary as a whole increased by almost 6% this month. Let's see how the different property types performed in February.
DETACHED
The detached segment is the big culprit behind the rising benchmark price in Calgary. The remarkable right market conditions seem to be going strong. The months of supply for detached homes is under 1 month for the third month in a row. The benchmark of $596,400 is almost $50,000 high than what it was at the end of 2021. If you go back even further, we've come more than $90,000 higher than the benchmark price in February of last year. The strongest sales growth so far in 2022, happened in the $600,000-$1000,000 price range since there were the most new listings in this range.
SEMI-DETACHED
The pressure is (still) on! February saw a record number of new semi-detached listings. But the inventory was quickly scooped up by eager buyers. More new listings, more sales! Compared to January, there were almost 50% more sales in February. Pretty much every 3 in 4 new listings were sold within the month. The months of supply for semi-detached homes dropped below 1 month - that hasn't happened since in February 2006. Thanks to the tight market conditions across the board, the benchmark price rose almost 5% this month to hit $461,400.
ROWS & TOWNS
It's slightly cooler but the temperature is still pretty warm in the townhome world. The low inventory levels & competitive buyer environment in the first two property types are leading some buyers to venture into the townhome market. I like to call this the "spillover" - when buyers have to pivot their search and start entertaining homes in slightly less competitive markets. The increased demand for townhomes pushed sales up by 76% from January. Compared to this time last year, sales are up more than 106%! The biggest price gains this February took place in Calgary's North, West, and NE districts.
APARTMENTS
We back baby! At least for this month. The condo sector saw a 59% surge in sales in February! Zooming out and taking a look at sales levels same time last year, we are 109% higher. The sales to new listings ratio hit almost 82% and months of supply dipped below 2 months - that's the tightest market we've seen for condos since 2007. This helped push the benchmark price in February to $257,500. Obviously, the condo sector has not been facing the same kind of supply challenges as the other property types but if conditions continue tightening up, we just might see the light pointing towards price recovery.
February is the shortest month of the year but there was no shortage of action across all property types. Sales activity & benchmark prices trended up for all four sectors. It's a tricky market for both buyers & sellers (yes, sellers have challenges too). It is so so SO important to be proactive & prepared in these tight market conditions so you can make quick decisions when opportunities come around the corner. Talk to your neighbourhood real estate agent to work together to come up with a game plan!
Source: creb.com
