The Calgary Housing Market Ends 2020 on a high note.
With December sales of 1,199, this is the highest December total since 2007.
"Housing demand in the second half of 2020 was stronger and nearly offset the initial impact caused by the shutdowns in spring. Even with the further restrictions imposed in December, it did not have the same negative impact on housing activity as we saw in the earlier part of the year," said CREB®
Low-interest rates, along with prices that remain a bit lower than several years ago, have likely supported some of the recovery in the second half of the year.
Annual sales activity declined by one percent compared to last year and remain well below long-term averages.
The annual residential benchmark price in Calgary declined by one percent over last year.
The pandemic has resulted in a significant shift in economic conditions, yet the housing market is entering 2021 in far more balanced conditions than we have seen in over five years. This will help provide some cushion for the market moving into 2021, but conditions will continue to vary depending on price range, location, and product type.
CALGARY HOUSING MARKET FACTS
Stronger sales in the second half of the year were enough to offset earlier pullbacks as detached sales totalled 9,950, just slightly higher than last years' levels. Despite the modest gain, detached sales activity remains at the lower levels recorded since the stress test was introduced in 2018.
Supply adjustments are causing sellers' market conditions for detached homes across all districts except the West and City Centre. This has helped support some price recovery in the market over the past several months.
Annual city-wide price remains relatively flat compared to last year, but there were notable annual gains in both the South and South East districts, which recorded price gains of nearly two percent. Despite some of the annual shifts seen, prices remain well below previous highs in all city districts.
Sales growth in the North East, North, West and southeast district were offset by declines in the City Centre, North West, South and East districts. Sales this year of 1,663 were similar to levels recorded last year.
While sales did not improve across each district, there were reductions in supply across all districts and reduced the months of supply.
These reductions are starting to impact prices, but it was not enough to offset earlier pullbacks. City-wide semi-detached prices eased by over one percent in 2020, with the largest declines occurring in the City Centre, North West and West areas.
Slower sales in the west district were not enough to offset the gains recorded in the rest of the city. Row sales totalled 2,145 in 2020, nearly two percent higher than last years' levels. Despite the gains, levels continue to remain below long-term averages for the city.
Rising sales were generally met with a reduction in supply. This is causing the months of supply to trend down, especially over the second half of the year.
The decline in the months of supply was enough to help support some stability in prices. However, the adjustment did not occur soon enough, and annual prices eased by nearly two percent compared to the previous year and remained nearly 14 percent below previous highs.
Price adjustments did vary depending on location. The steepest decline occurred in the North East, with a year-over-year decline of five percent. The strongest gain occurred in the West district with a two percent rise.
Apartment Condominium Homes
Sales this month was the best December since 2014. However, it was not enough to offset earlier pullbacks as apartment condominium sales eased by ten percent in 2020. This is the slowest year for apartment condo sales since 2001 and the only property type to record a significant annual decline in sales.
Unlike other property types, supply levels have not adjusted in the same way, and this segment remains oversupplied. Prices have trended down over the past two months due to excess supply. On an annual basis, the benchmark price declined by over two percent this year and is over 16 percent below the highs set in 2015.