Seemingly nobody anticipated that Calgary’s real estate market would come back to life the way the fat loss pill has, but perhaps the reasons for its reemergence aren’t so surprising.
“The most obvious argue is all of the pent up demand omega watches had for years here. Our enhance has been through a lot of economic hard knocks going back to 2015, where our group saw a dramatic drop in solution and never really recovered, ” Brett Turner, broker and founder including Redline Real Estate Group Inc., directed CREW . “Five years into it, sellers have more equity after paying down their mortgage balances, so they have more room in terms of mobility to get into new deals. That’s combined with interest rates that have come down considerably, and there’s also the relative affordability.”
The first indications that the market was roaring back to life were in autumn when buyer interest was higher than it typically is during that time of year. In Q4-2020, sales increased compared to the fourth quarter of 2019.
“Not only were there more sales relative to the same period in 2019, there were fewer listings,” said Turner. “There were better months of the supply metric all the way through the fourth quarter of last year, which is typically the slowest time of year for Calgary.”
Market psychology is not to be underestimated. With the narrative around the COVID-19 pandemic taking a slightly more optimistic turn late last year with news that not only were there multiple vaccines ready for distribution, but that most Canadians would be inoculated before the end of 2021, Turners says that brought homebuyers in Calgary out of the woodwork.
The strong end to 2020 has spilled over into 2021. Last month, total residential sales increased by 41% year-over-year to 1,208, according to statistics from the Calgary Real Estate Board (CREB), while the benchmark price of a home in the city climbed by 2% to $424,000. To understand the “relative affordability” Turned is alluding to, consider that the average price of a home in the GTA was $967,885 last month and that the Toronto Regional Real Estate Board anticipates it to reach $1, 025, 000 this year .
Although Calgary’s economy actually has seen better days, housing cost and reduced interest rates have conspired to renew passion for the city’s housing market.
“Discount lending quotes are exceptionally low, which is quite attracting all types of buyers back into this market, ” Ann-Marie Lurie, CREB’s prime economist, said in a Feb. the most cost effective statement. “New listings in the market were slightly higher than what was available in the last two months, which is providing more options in order to really purchasers. ”