The showings for CIR Realty’s listings week over week have continued to climb. They have risen 20% week over week, which is up over 31% compared to the same week last year! The largest increase in activity has been in the price points below $500,000. Due to this we can anticipate the higher price points to see increased activity in the weeks to come.

With the inventory continuing to decline with the heightened sales activity, the markets continue to tighten, and are getting more competitive. While some markets are beginning to move into sellers markets, many remain in busy balanced territory. The signs to watch for are when we start seeing months of inventory drop below 2 months, prices increasing and days on markets lowering, then markets have shifted to the sellers territory.

Keep in mind that even with the multiple offers, and the back up offers occurring in the markets, it is still important to price properly as buyers recognise the over priced inventory, and it will sit on the market if not properly priced.

-Steve Phillips, CIR Realty

The showings for CIR Realty’s listings week over week have continued to climb. They have risen 20% week over week, which is up over 31% compared to the same week last year! The largest increase in activity has been in the price points below $500,000.  Due to this we can anticipate the higher price points to see increased activity in the weeks to come.

With the inventory continuing to decline with the heightened sales activity, the markets continue to tighten, and are getting more competitive. While some markets are beginning to move into sellers markets, many remain in busy balanced territory. The signs to watch for are when we start seeing months of inventory drop below 2 months, prices increasing and days on markets lowering, then markets have shifted to the sellers territory.

Keep in mind that even with the multiple offers, and the back up offers occurring in the markets, it is still important to price properly as buyers recognize the over priced inventory, and it will sit on the market if not properly priced.

-Steve Phillips, CIR Realty

January sales were the highest they have been for the month since 2014, as housing market momentum from the end of 2020 carried over into the start of 2021.

Sales activity improved across all product types and across all price ranges.

“Discount lending rates are exceptionally low, which is likely attracting all types of buyers back into the market,” said CREB^® chief economist Ann-Marie Lurie.

“New listings in the market were also slightly higher than what was available over the past two months, which is providing more options to purchasers.”

January’s new listings were 2,246 relative to the 1,208 sales in the market, causing inventories to edge up over December levels. These types of movements are typical for January, but 2021 is starting the year with 4,035 units in inventory. This is far lower than the past six years.

Benchmark prices remained at levels relatively consistent with prices recorded at the end of 2020, but they reflect a year-over-year gain just below two per cent.

Average and median prices recorded higher year-over-year gains, likely due to larger gains in sales in the higher end of the market. Those segments do not have the same inventory constraints as  lower-priced product.

HOUSING MARKET FACTS

Detached

January sales activity improved across most prices ranges. However, limited inventories for homes priced below $500,000 ensured conditions in those segments remained firmly in sellers’ market territory. This likely prevented stronger sales improvements in this portion of the market.

However, with better supply options at the upper end of the market, sales activity improved.

The citywide months of supply was just over two months, a significant drop from last January where levels were nearly five months. The tighter conditions in this segment supported further gains in prices, which currently sit nearly three per cent above last year’s levels.

Year-over-year price gains range significantly throughout the districts of the city. The largest gains occurred in the North and South East districts. Prices remained relatively unchanged over the previous year in the City Centre and West districts.

Semi-Detached

January sales activity rose over last year’s levels due to gains across most districts. The West end district continues to see slower activity than the previous year.

New listings improved from December levels. This is causing some monthly gains in inventories, but inventory remains well below levels seen last year and the months of supply remained below three months.

Price activity did vary depending on location. Year over year, prices remain over one per cent higher than last year’s levels thanks to strong gains in the North and South East districts. However, persistently high levels of inventory compared to sales contributed to the significant price decline occurring in the West district.

Row

Thanks to gains across nearly every district, sales activity improved compared to the previous year. Unlike the detached and semi-detached sectors, row new listings trended up relative to last month and levels recorded last year.

The rise did result in some monthly gains in inventory levels and caused the months of supply to rise to nearly five months. This is not entirely unusual activity for January. The months of supply remains well below last year’s levels at nearly seven months.

Citywide row pricing remained relatively stable compared to last year and last month. However, there was significant variation depending on location. Year-over-year price gains exceeded four per cent in the City Centre, West and East districts.  Meanwhile, prices eased by over three per cent in the North and South East districts.

Apartment Condominium

For the third month in a row, apartment condominium sales rose above levels recorded in the previous year. January levels are the best we have seen since 2014. While new listings have eased compared to last year, they recorded a significant jump over December levels, keeping inventories elevated relative to sales activity.

While prices remain well below previous highs, there were some districts that recorded year-over-year gains. The strongest gains occurred in the North East, East and South districts. However, prices continue to fall in the City Centre, West and South East districts.

REGIONAL MARKET FACTS

Airdrie

Sales activity stayed strong in January. With 103 sales, this was the best January since 2007. New listings improved compared to last month, resulting in some monthly gains in inventory levels. However, the months of supply has remained relatively tight.

With conditions continuing to favour the seller, benchmark prices trended up relative to last month. At $349,100, benchmark prices are over five per cent higher than levels recorded last January. The strongest year-over-year price gains occurred in the detached and semi-detached sectors.

Cochrane

Cochrane sales improved from last January’s levels, but we also saw a notable rise in new listings. This caused the sales-to-new-listings ratio to ease to 63 per cent.

This is a significant improvement over last month, which saw sales levels exceed the level of new listings in the market. Overall, conditions remain relatively tight, with the months of supply staying below three months.

Benchmark prices recorded year-over-year gains across all property types. Overall, benchmark prices remained over four per cent higher than last January’s levels.

Okotoks

After several months of relatively weak new listings, January saw some pickup in new listings relative to the last quarter of 2020.

Sales remained relatively consistent with last year’s levels, causing the months of supply to trend up to three months. This is higher than the extremely tight levels seen at the end of 2020, but it is still significantly lower than the six-plus months recorded in January of last year.

Benchmark prices remained stable compared to last month, but they are over three per cent higher than last January. The gains were driven by the detached sector, as prices continue to ease in the semi-detached, row and apartment sectors.

-CREB

Here is a great graph showing a reason why the real estate market is so strong despite the downward trend of the rest of the ecomony. ⬆️⬆️

$30/hr jobs are up almost 10% from the start of the pandemic. With low interest rates, this gives a great opportunity for these people to get into the housing market. The decline in low income jobs matters for many sectors, but this is having less of an impact on real estate.📈

-Lindsey Smith, CIR Realty

The start to the year has been a busy one with the sales activity across Alberta hitting levels that we have not seen in over a decade!  With an uptick of 43.6% compared to January 2020,  climbing to a total of 4,045 sales across the Province. This was experienced across all price ranges, from under $200,000 to over $1,000,000+.

Some of the hottest markets in the Province year over year for January were Canmore (+220%), Brooks (+66.7%), Red Deer (+43.5%), Calgary (+40.7%), and Airdrie (+39.2%). While other markets in Cochrane, Crowsnest, Lethbridge and Camrose all continue to outperform years past as well. The real surprise was in Fort Mcmurray where sales jumped but were primarily in the lower price ranges. The coolest markets for the month were Grande Prairie, Rocky Mountain House and Sundre but each of these markets had consistent numbers compared to years past in their areas..

With the unemployment rate dropping in Alberta to 10.7%, and disposable income savings continuing to remain strong at 14.6% through the last quarter of 2020, combined with low interest rates there is no signs of slowing down in the near future (pending any unpredictable World events).  With the first time home buyers markets doing well in most areas, it has opened up the markets in the price point above and the full property ladder is in effect in most area across the Province.

As always, there are many variations and conditions within each market that help determine what is happening in each “micro” market.  Understanding these variances are critical in proper pricing to achieve the best results for our clients.

CIR’s overall start to the year has been a busy one, in fact, the third busiest in company history!  Given that showings are up +59% over December, and +45% over January 2019’s showings, we don’t anticipate a slow down any time soon.

Calgary’s months of supply of inventory has lowered to 3.06 months after seeing a 40% increase in sales year over year, and a decline in inventory by 20%.  This big push in December brought sales just under -1% less transactions ytd than 2019. The market conditions are shaping up for more competitive conditions in 2021.

Airdrie hit a new record for the number of transactions in the month of December!  With inventory continuing to decline combined with record sales, it continues to lower the months of supply on the market.  With teh bulk of the sales activity in the $300,000 to $500,000 price range, it is proving to be an ideal move up market.

-Steve Phillips, CIR Realty

The market continues to heat up but showings are down??

​The last week in January saw the showings taper offer from the busy week prior. Our current rate of showing sis more comparable to this time of year in 2019, down slightly from the same time period in 2020. This appears to not be due to lack of demand, but rather to the lack of inventory that is currently available.

​The active listing inventory across the Province is down -23% from 2020, and down -29% form the same time in 2019!  Even with the drop in inventory, the sales outpace  last years numbers by +44%!  This has caused our months of inventory to drop to 4.6 months across Alberta. 

​Due to this decrease in inventory, buyers are competing for the properly priced inventory, and sales are up in all price ranges year over year. 

CIR Realty