CREB’s market update title says it all – “Sellers’ market in February leads to rising prices” Spread the wealth and the activity! Both sales activity and prices saw an increase across all product lines in the month of February, making this the best February since 2014! With overall months of supply of less than three months Calgary is seeing strong sellers market conditions. The detached sector still leads the charge, especially at price points below 600K as most markets have less than 2 months of inventory. February’s residential benchmark price is just over 4% above last years pricing.
“Despite continued COVID-19 restrictions, housing activity continues to improve. Much of the strong sales activity is expected to be driven by exceptionally low mortgage rates,” said CREB® chief economist Ann-Marie Lurie.
“Confidence is also likely improving as vaccine rollouts are underway. Additionally, some of the worst fears concerning the energy sector are easing with recent gains in energy prices.”
Detached home sales activity improved across every price range last month. The market is being fed by bottom pressure moving upwards through all product ranges. The lack of inventory in the lower priced market is still being met by increased demand. I do believe as word about the changing market starts to spread and as Covid restrictions ease that buyers should see an increase in new listings as spring approaches.
Semi-detached sales in February had significant gains and saw the highest levels in over a decade. There wasn’t quite the uptick in new listings in this sector as detached and activity levels varied between the different market areas of the city with the West leading in price improvements year over year of around 2%. Row homes however had both an increase to new listings as well as sales last month. Months of supply continues to fall and is reflective of seller’s market conditions.
Apartments have had a significant uptick in sales and that activity in this sector has been driven in the lower price ranges. That said, inventory levels still remain higher than long-term averages. This market across the city and in all price ranges is still a buyers market but inventory levels are trending in the right direction.
Around the city our neighbouring towns had record sales activity! Airdrie and Cochrane put it down in their record books as the best February ever and Okotoks had their best February since 2007.
You will notice that just recently we saw small increases to mortgage rates across the board. But rates are still extremely low compared to long-term averages. Buyers will want to make sure they are preapproved and prepared with a plan to act quickly when new listings come up and to strategically present competitive offers. Sellers, if you have been thinking of selling in the last year, waste no more time. Lets get this conversation started! We can prepare your home valuation and put together a plan to ready your home for listing in this market!