The first two months of 2021 rival even the busiest of markets that Alberta has ever experienced!
With sales in February rising 56% year over year, and new inventory selling faster than it can come onto the market, the conditions are quickly changing to favour sellers in many markets across the Province.
The hot spots in the Province continue to be Cochane, Canmore, Okotoks and Airdrie. With notable mentions to Camrose, Brooks, Rocky Mountain House and Sundre who all had strong months compared to February’s past. The slowest markets continue to be our more Northern communities like Grand Prairie and Fort McMurray.
Over the past few years most of the buyers that wanted to buy, also had a home they needed to sell. With many first time buyers finding improved buying power and entering the markets, due to low interest rates, the disposable income savings rate remaining around 13%, strengthening confidence in the energy sector and other areas of employment, along with a new appreciation for home they continue to feed the property ladder as homeowners are now able to move up.
Another real challenge for the Alberta Real Estate Market over the past six years has been consumer confidence. With other major Canadian cities price points rapidly climbing, and buyers being priced out of the markets, we are seeing investors shifting their focus to Alberta. Whether it is in the energy sector or the pandemic, there is returning confidence and consumers are once again seeing value in Alberta’s market.
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 Realty’s activity continues to skyrocket! With the showing activity increasing 31% month over month, and over 42% higher than February of 2020, it continues to improve the markets. The activity increased across all price ranges month over month, and we are seeing a larger percentage of showings occuring in the middle and upper price ranges. The activity has led to higher transaction counts as our Brokerage exceeded February of 2020 sales numbers by 69% and has set a new company record for February, as well as being the fourth highest sales volume for any month in our company history! This sales activity is carrying over into the first week of March exceeding sales by 85% compared to the same week last year. This marks a 34% increase in transactions over any other year for the first week of March .|
Airdrie experienced an incredible month in having the largest amount of sales recorded for the month of February! This marks one of the top five months over all in the past decade! With the months of supply dropping into sellers markets across all sectors with the exception of the Apartment sector, which has moved into a balanced market, the Benchmark price is now rising and the average days on market is lowering.
The sales in Brooks have been strong for the month of February, and have continued to outpace new inventory coming onto the market. This has helped continue to lower the months of supply as the market edges closer to a balanced market.
Calgary’s market is one of the most affordable major Cities in Canada, and buyers from across the country are recognizing the value here. The sales activity in all price ranges increased in February, while new inventory once again failed to keep up to the volume of sales. With the detached sector being the most competitive and in a sellers market, prices are edging upwards and days on market are dropping. The Semi-detached and Row sectors are all in competitive balanced markets, while the Apartment sector continues to make large improvements getting closer to balanced territory.
Camrose a big jump in sales activity in February and is on record as one of the strongest February’s in history. With less inventory coming onto the market, and the increase in sales the inventory levels have dropped bringing the market into a healthy balanced market. If continued, these trends will improve pricing and lower days on market.
Canmore is on the verge of all sectors moving into a sellers market as the months of inventory continue to drop across the board. With sales over $700,000 having the largest jump in activity the Median and Average prices are moving up but the Benchmark price for the area remains relatively stable for the time being.
Cochrane’s market has had dramatic upticks in sales across all price points with the exception of under $200,000 year over year for the month of February. With the continued hot streak, and the strongest sales for February in history, the days on market for listings continue to drop, and price points are rising.
Crowsnest Pass had a large jump in activity in the under $200,000 price point in February. With the steady sales activity continuing, the balanced market conditions persist.
Lethbridge’s markets between $200,000 – $400,000 continue to move at a fast pace. Due to the increased sales activity thedetached and semi-detached markets are continuing to get closer to sellers market conditions while the Row and Apartment sectors remain in a buyers market.
The Row sector in Okotoks is the only sector that remains in a buyers market and has signs of continued challenges ahead. The Detached and Semi-detached sectors are in sellers markets with prices increasing and days on market dropping, while the Apartment sector remains in a balanced market but has signs of moving closer to a sellers market.
Olds continues to have a strong start to the year. With sales outpacing the new listing inventory coming onto the market, the overall markets are edging closer to a healthy balanced market.
Red Deer’s market was largely carried by the sales in the $200,000 – $400,000 prince ranges. This has led to solid improvements year over year in the higher price points as well. The increased sales activity, and tightening inventory levels has led to much more balanced conditions across the market but the Row and Apartment sectors remain in buyers markets. The overall market is seeing price improvements and lowering days on market.
Rocky Mountain House continues to have a strong start to the year. The increase in sales activity, and lower amount of inventory has led to the lowest months of inventory in over two years. This should lead to further balancing of the markets providing more stabilized prices.
The Strathmore market continues to show signs of strength after a brief slow doesn in January. The detached sector is the strongest sector in the area, and edges to more competitive conditions of a seller’s market.
Sundre had a pretty standard month as far as February goes. The market conditions remain in a buyers market but if sales continue, and inventory remains in check there should be more balanced conditions on the horizon.
-Steve Phillips, CIR Realty