Calgary's autumn estimates are mostly unchanged, with prices expected to remain flat or increase by 1%. RE/MAX brokers in Edmonton and Calgary have witnessed this trend, where buyers are taking advantage of increased purchasing power as a result of local house affordability and lower borrowing rates.
October sales totalled 2,186, a monthly high and approximately 35% higher than long-term norms. Year-to-date sales are already 61% higher than the previous five-year average.
According to local RE/MAX agents, this is projected to continue for the remainder of 2021. This can be credited to market changes, where oil prices are reverting to 2014 levels, which corresponds to a rise in Calgary condominiums.
Re/Max recently issued its Canada 2021 Condominium Report, which examined activity in five major locations and discovered that Calgary had the strongest growth, with sales increasing by more than 80 percent year over year from January to August.
Demand for lower-priced condominiums is being driven by relative affordability: Calgary is one of the few cities in Canada where a sub-$300,000 condo unit in a desirable location is available.
Condo sales plummet because they compete with single-family detached and semi-detached homes in the $400,000 to $500,000 price range.
According to brokers, there are two types of condominium buyers. First-time homebuyers who cannot afford a single-family home but want to get into the market being the first kind, the second would be customers looking for high-end urban options in their lifestyle.
Breaking down the numbers
While new listings climbed over last year, higher sales reduced inventory levels, which were 16% lower than last year and longer-term averages for the month. Although high sales have contributed to the decline in months of supply, supply has failed to keep up with demand. The supply was little over two months in October.
Because of the tight market conditions, benchmark prices increased this month. October's benchmark price of $460,100 was slightly higher than last month's and more than 9% more than the previous October's price of $422,600.