Calgary real estate market continues strong stretch, demand outpacing supply
As Calgary's economy roars back to life, there are strong signs of recovery, and maybe even some sustained growth, in the city's up-and-down real estate market.
"It's like we haven't seen it in quite some time," said Renzo realtor Michael Montgomery. "We are seeing a lot of interest from outside provinces coming in, and demand is really increasing."
After heating up in late 2020, the market is once again flooded with Canadians aiming to take advantage of low lending rates.
Many are wanting to upgrade after the pandemic shutdowns.
The Calgary Real Estate Board (CREB) counted 27,686 home sales last year.
That's 72 per cent higher than in 2020, and 44 per cent higher than the decade's average.
Detached homes led the way for sales.
It's all leading to a new problem not seen in quite some time.
"The real challenge is there's just not the inventory out there for people to buy," said Montgomery.
Some real estate agents say they are working with buyers who have written 10-plus offers and not been successful.
"And what that ended up doing is causing prices to increase at a far greater pace than anyone had anticipated," said CREB chief economist Ann-Marie Lurie.
Those aren't the only signs of strong market.
The percentage of arrears to the total number of Calgary mortgages has been on a steady decline since the summer of 2020, which is typically a reliable economic indicator.
And though the number is nowhere near where it was in 2014 and 2015, the dip is encouraging.
"If the economy sort of recovers to that level, then you know, 0.3 per cent mortgage arrears rate wouldn't be too surprising," said Michael Mak with CMHC.
And though it's not the best time in the city's history, there is still some good news mixed in with the bad for buyers.
"As we move forward, rates are expected to rise a bit," Lurie said. "So that should take some of the pressure off demand and also give that chance for supply levels to really catch up."
What that will do to prices remains to be seen, but some economists say they expect those record breaking numbers to rise only slightly in 2022.