Calgary’s real estate market has shed its pandemic inhibitions and roared into life and how! The Stampede City had the hottest real estate summer in years, with home sales tumbling previous records and property prices zooming to new highs.
Calgary’s spring hopes were in the throes of a downward trend with the eruption of the pandemic. The merry preparations for spring went down the drain with the nationwide lockdown devised to flatten the pandemic curve.
Home sales tanked to a record low of 63% in April as real estate businesses were shuttered and homebuyers stayed away from the real estate market. The picture improved in May to 43% as the economy reopened and by June home sales picked up pace.
With the increase in GDP by 6.5% in June, up from 4.8% in May, the Canadian economy showed flickers of hope. This loosened the pent-up real estate demand in Calgary as homebuyers spilled onto online real estate portals to buy new homes which also lead to an increase in listings.
Is Calgary’s Real Estate Market on an upward curve?
After a disastrous spring and tepid summer, Calgary’s home sales surged exponentially. According to Calgary Real Estate Board, single-family and townhomes registered record sales year-on-year in August. 992 single homes were sold in August alone, up from 945 in the same month a year ago. On the other hand, townhome transactions increased to 216 in August, up from 194 a year ago.
The total home sales for August in Calgary stood at 1573 which is impressive considering the negative impact of the pandemic on the real estate market.
If we take a glance at the property prices in Calgary, there is not much of a dent as the residential benchmark price stood at $420,800, down from one percent. However, the detached home prices remained stable due to tighter market conditions. Though the pandemic is still on a roll, supply levels across home categories have increased significantly as buyers and sellers have started to dip their feet back into the market. This has led to a buyers’ market.
Buyer opportunities galore in Calgary’s real estate market
The record unemployment rate in Calgary towards the end of summer in June worried real estate agents and developers. A mammoth 120,000 jobs were lost in June alone as professional and technical service industries that drive real estate markets took a tumble.
However, the fears got allayed at the start of autumn as 27,000 jobs were added in August, improving the unemployment rate by one percent to 11.8%. Though this is a good sign that the real estate market is making a slow and steady recovery, real estate agents think that the Calgary property market will be on a high only when the employment levels reach pre-pandemic levels.
But, with the home prices sitting at a percentage lower than what they were a year before, and the bank rates still continuing at record low levels, it will trigger a buying opportunity for millennials and young professionals looking to get a property at a good price. Since Calgary has a diversified economy consisting of manufacturing, financial, aerospace, retail, film and television industries, it won’t take much time for the city to make a comeback, something which will be music to the ears of the real estate community.