Nnamdi Elemamba

REALTOR®

I have listed a new property at 5509 11811 Lake Fraser DRIVE SE in Calgary.
Great living, dining and kitchen open concept condo located in popular Lake Bonavista! Well maintained appliances and very bright space. The living room and bedroom are west facing with loads of sunshine pouring in. The building is popular with first time home buyers, investors and empty nesters. It has a gym, rec room and guest suites.
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I have sold a property at 5405 11811 Lake Fraser DRIVE SE in Calgary.
This building is one of the best in its class - Game room, entertainment place, guest suites and gym! It uses solar panels and under-ground thermal heating for its utilities. Inside the unit the tiled entrance and kitchen are very easy to maintain, and the kitchen is very well designed and includes stainless steel appliances, tiled backsplash, granite counter tops, beautiful cabinetry, and the right amount of cupboard space. The bedrooms are separated by the living space, and the primary is connected to the carpeted den, and includes a walk-through closet to the 4 piece ensuite bathroom. Titled underground parking plus additional storage.
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I have listed a new property at 302 1311 15 AVENUE SW in Calgary.
You wouldn't want to miss this large unit, if you want to live in the heart of Calgary at less than a fraction of typical price. Close to the vibrant 17 Ave SW and 14 St SW, yet about two blocks away to ensure you have quiet and restful nights. This unit has two good size bedrooms, one full bathroom and a half bath. underground parking and storage plus walking distance to almost everything! Bring your interior design hat, update the unit to taste and create your own million-dollar home in Downtown Calgary!
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I have sold a property at 65 Autumn TERRACE SE in Calgary.
This 2011 built 1504 sf Belvedere model by Brookfield is situated on a quiet cul de sac and has a south exposed, sunny, fully decked backyard. The 4 bedroom home is beautifully finished and will make for a great home for the next owners. On the main floor, the sunken living room has large windows, a gas fireplace, and built-in shelving coming off the kitchen island. As you step up to the kitchen with the vinyl plank flooring beneath you, the large kitchen stone-topped island is the centre piece. The kitchen has stainless steel appliances throughout with a gas range, refrigerator with a water spout, microwave with attached hood fan, and dishwasher. The dining room is towards the back of the house which provides great natural light coming in from the large rear window. At the back vestibule entrance another cloak closet complements the entrance/exit and the main floor half bath is also found there. Upstairs, upgraded carpet is laid that starts at the base of the steps that run along the staircases spindled handrail. The staircase to the upstairs is well illuminated from natural lighting during the day because of the large skylight located on the upper floor. The main floor also benefits from this skylight because of the open to below feature located above the kitchen. The upstairs has a common 4-piece bathroom, 2 large sized bedrooms, as well as the primary bedroom that is accompanied by a 4-piece en-suite. The primary bedroom also has a good-sized walk-in closet. The basement is fully finished with a bedroom, a 4-piece bathroom and a recreation room that has been finished with lots of pot light in the 9-foot ceilings. Out the back door, the composite deck finish is a great place to relax and enjoy a beverage morning or night. The garage comes with a number or built-ins and shelving and is oversized to allow for ample room to park vehicles or store and work with your tools. Come check out this amazing property located in the amazing lake community of Auburn Bay.
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I have sold a property at 1502 1100 8 Avenue SW in Calgary.
This spacious, bright, and beautiful condo in the heart of Downtown Westend, draws sunshine from east, south and west! Its on the 15th floor and overlooks most of Downtown and the Bow River. Open floor plan, large living room and dining, spacious two bedrooms, and two and a half bathrooms. The kitchen is an ideal U-shape and invites anyone to cook a great meal while providing all the space to entertain and enjoy the morning sunshine. In the evening, you can relax in the large primary bedroom ensuite jetted tub, or watch the sunset from the bedroom balcony, or on your bed. Built-in vacuum and loads of storage in the in-unit laundry and dedicated storage space. There’s one underground parking stall assigned and lots of visitors parking nearby. Fast elevator system. Very secure building with 24-hour concierge. In short, this unit shows like a penthouse, only that you are not on the topmost floor. The building has many enjoyable amenities such as a three-lane pool, two racquetball or squash courts, billiards, a gym, and many friendly neighbors. The C-train, groceries, coffee shops, pubs and parks/paths are all located within walking distance.
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I have sold a property at 56 Arbour Butte WAY NW in Calgary.
This is a nicely renovated house in the sought after and established neighborhood of Arbour Lake. The neighborhood has everything your family needs, all within minutes away - Schools, shopping, parks, playgrounds, and all-season lake access! The interior is fully renovated for entertaining friends and family – fresh wall paint, brand new Samsung kitchen appliances, brand new carpet upstairs and in basement, and luxury vinyl planks throughout the main floor. Open concept main floor. Upstairs has two good sized bedrooms, 4-piece main bathroom and a large primary bedroom with WIC and ensuite bathroom. Basement is fully finished with a bedroom, full bathroom, and a family room. The exterior wasn’t left out! Roof was replaced in December 2019.
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I have listed a new property at 56 Arbour Butte WAY NW in Calgary.
This is a nicely renovated house in the sought after and established neighborhood of Arbour Lake. The neighborhood has everything your family needs, all within minutes away - Schools, shopping, parks, playgrounds, and all-season lake access! The interior is fully renovated for entertaining friends and family – fresh wall paint, brand new Samsung kitchen appliances, brand new carpet upstairs and in basement, and luxury vinyl planks throughout the main floor. Open concept main floor. Upstairs has two good sized bedrooms, 4-piece main bathroom and a large primary bedroom with WIC and ensuite bathroom. Basement is fully finished with a bedroom, full bathroom, and a family room. The exterior wasn’t left out! Roof was replaced in December 2019.
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I have listed a new property at 1502 1100 8 Avenue SW in Calgary.
This spacious, bright, and beautiful condo in the heart of Downtown Westend, draws sunshine from east, south and west! Its on the 15th floor and overlooks most of Downtown and the Bow River. Open floor plan, large living room and dining, spacious two bedrooms, and two and a half bathrooms. The kitchen is an ideal U-shape and invites anyone to cook a great meal while providing all the space to entertain and enjoy the morning sunshine. In the evening, you can relax in the large primary bedroom ensuite jetted tub, or watch the sunset from the bedroom balcony, or on your bed. Built-in vacuum and loads of storage in the in-unit laundry and dedicated storage space. There’s one underground parking stall assigned and lots of visitors parking nearby. Fast elevator system. Very secure building with 24-hour concierge. In short, this unit shows like a penthouse, only that you are not on the topmost floor. The building has many enjoyable amenities such as a three-lane pool, two racquetball or squash courts, billiards, a gym, and many friendly neighbors. The C-train, groceries, coffee shops, pubs and parks/paths are all located within walking distance.
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I have sold a property at 444 Legacy BOULEVARD SE in Calgary.
No showings Saturday March 19.Luxurious 6 bedroom home in Legacy. Over 3100 square feet of developed living space. 2nd storey has 4 bedrooms including a large master and a beautiful 5 piece ensuite where you can realax after a long day in the jetted tub. Laundry is convienently located on the upper floor. Main floor office perfect for working from home. The main floor boasts an open layout complete with an upgraded kitchen and open living room great for entertaining. While we are talking about entertaining have a look at the large composite deck off the dining room. Lots of room for a BBQ not to mention the Arctic Spa hot tub that is included. The basement is fully finished with 2 more bedrooms, a full bathroom and a rec space. Here is your chance to get into your new home for the summer, book your viewing today.
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I have listed a new property at 323 5201 Dalhousie Drive NW in Calgary.
Well maintained unit in a great location. Next to Dalhousie Transit Park n Ride, next to shopping malls, and minutes to downtown! The unit was recently renovated with engineered hardwood flooring throughout, and fresh paints. It has two large bedrooms with good size walk-in closets. Ensuite bathroom, in suite laundry and an oversized powder room (this can easily be converted to a full bathroom). The kitchen has stainless steel appliances. Titled underground parking stall and assigned storage. This unit is priced to sell.
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I have sold a property at 91 Chaparral Valley COMMON SE in Calgary.
This is the home you have been waiting for! This fantastic home will impress you with 9ft ceilings, and a gorgeous and inviting layout on the main floor which features a large open kitchen overlooking the main floor living room and dining perfect for entertaining every season. This beautifully upgraded living space is flooded with sunlight throughout the day inside and off the dining room, you will find an oversized beautifully landscaped, and south-facing backyard that backs onto fish creek park. The kitchen is upgraded with granite countertops, subway tile backsplashes, water filtration, garburator, and an ample amount of cabinets including the breakfast bar overlooking the living space. Upstairs there are 3 good size bedrooms including the large primary with full ensuite and walk-in closet, and a great bonus room perfect for the home office or media room. The basement is unspoiled and awaiting your creative touches. Do not miss your chance to check this beauty out for yourself!
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I have sold a property at 87 Panamount STREET NW in Calgary.
Never been on the market! This well-maintained property has ample space, location, and the right neighborhood. Open floor concept - check! Hardwood flooring – check! Main floor den - check! Large living room with large west facing windows - check! Gourmet kitchen - check! Upper floor laundry - check! Large size primary bedroom – check! En-suite and WIC – check! For a 2006 built home, this property checks all the boxes. You only need to paint the walls with an off-white colour and develop the over 850 SF basement space to your taste, and you have a “2021 home”. Great location on one of the most desirable streets in Panorama Hills. Close to schools, parks, playgrounds, and shopping malls.
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I have listed a new property at 413 Bayside PLACE SW in Airdrie.
Great opportunity to get into a detached home on a budget! This 3-bed, 2.5-bath home on a cul-de-sac has tons of lights pouring in and has a large pie-shaped lush green lot. On the main floor you have open concept living with hardwood flooring, kitchen with well maintained appliances and dining area overlooking the backyard and large deck for summer BBQs. Upstairs there are 3 bedrooms, 2 bathrooms and a bonus room. The primary bedroom is quite large and has a walk-in-closet and ensuite 4-piece bathroom. The basement is partially finished with an extra bedroom requiring drywall finish and a rough-in bathroom.
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I have sold a property at 3710 11811 Lake Fraser DRIVE SE in Calgary.
Great living, dining and kitchen open concept condo located in popular Lake Bonavista! Fresh paint, well maintained appliances and very bright space. The living room and bedroom are east facing with loads of morning sunshine pouring in. The building is popular with first time home buyers, investors and has a gym, rec room and guest suite.
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I have listed a new property at 87 Panamount STREET NW in Calgary.
Never been on the market! This well-maintained property has ample space, location, and the right neighborhood. Open floor concept - check! Hardwood flooring – check! Main floor den - check! Large living room with large west facing windows - check! Gourmet kitchen - check! Upper floor laundry - check! Large size primary bedroom – check! En-suite and WIC – check! For a 2006 built home, this property checks all the boxes. You only need to paint the walls with an off-white colour and develop the over 850 SF basement space to your taste, and you have a “2021 home”. Great location on one of the most desirable streets in Panorama Hills. Close to schools, parks, playgrounds, and shopping malls.
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I have listed a new property at 3710 11811 Lake Fraser DRIVE SE in Calgary.
Great living, dining and kitchen open concept condo located in popular Lake Bonavista! Fresh paint, well maintained appliances and very bright space. The living room and bedroom are east facing with loads of morning sunshine pouring in. The building is popular with first time home buyers, investors and has a gym, rec room and guest suite.
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I have listed a new property at 7619 16 STREET SE in Calgary.
Extensive renovations! plumbing, electric breakers, switches, flooring, roofing, and deck! Main floor of this well-maintained home is fully updated with modern kitchen cabinets, appliances, and vinyl flooring. The primary bedroom and another good-sized bedroom are on the main floor, together with the bright living space, kitchen, and dining, facing a large rear deck, and overlooking the backyard with mature willow tree and fire-pit for BBQ summer nights! Downstairs there are three additional bedrooms plus a family/bonus room, all on a very quiet street with matured trees.
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I have sold a property at 324 60 Royal Oak PLAZA NW in Calgary.
Titled parking and titled storage! This third floor, 2 bedroom, 2 bathroom Condo is perfectly located in the NW Royal Oak Community. It has an open concept floor plan, with a breakfast bar, kitchen and black appliances. A good size Primary Bedroom with a walk-through closet and a 4 piece en-suite bathroom. The unit is complete with an in suite laundry room (washer and dryer), 4 piece guest bathroom and a 2nd bedroom. The 9 foot ceilings provide a comfortable sense of space. Outside is a good sized deck that includes a gas BBQ line. Title comes with titled single underground parking spot and titled storage. Visitors parking is not an issue in the complex. The Plaza is conveniently located with super easy access to all the main roads, where you can quickly escape to the mountains, or your route to work, and public transportation. A huge shopping Centre is located right across the street, which includes Walmart, Sobeys, HomeSense, and many more.
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I have sold a property at 64 Hawkside CLOSE NW in Calgary.
Not very often do you find on the market, a custom built and well-maintained home, perched on a hillside large cornet lot, in the executive neighbourhood of The Uplands in Hawkwood. This home with over 3,600 SF finished space, will impress you from the entrance. The curb appeal features mature trees, front yard garden and an oversize 24 ft x 24 ft double car garage. Inside you are greeted by an 18 ft high foyer, bright lights, large windows, and open concept main floor. The living room and formal dining area are on the left, the marble finished kitchen with wood cabinets is behind, including a nook and family room overlooking the large backyard deck. A well-lit den/office space, half bath and main floor laundry/mud room completes this level. Upstairs there are 3 large bedrooms. The Primary bedroom has a large French door grand opening with a 5-piece ensuite and a walk-in closet. The other bedrooms share another 5-piece Jack & Jill bathroom. On the walk-out basement level, you have another large size bedroom and a 3-piece bathroom. A rec room that can easily host a ball room dance and a dedicated room for an oversized hot tub. The hot tub requires some repairs. Sellers are willing to remove the tub if buyers are not interested or would give a $500 rebate for repairs. The backyard is a small oasis with mature trees, play areas and a de-commissioned Koi Pond. All this will be all yours plus exclusive membership in the prestigious Uplands Recreation Centre! Walking distance to shops, schools, club house and walking paths.
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CREB® Media Release

Amidst economic challenges, housing market ends 2020 on a high note


City of Calgary, January 4, 2021 –

With December sales of 1,199, this is the highest December total since 2007.

"Housing demand over the second-half of 2020 was far stronger than anticipated 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 like we saw in the earlier part of the year," said CREB® chief economist Ann-Marie Lurie.

Attractive interest rates along with prices that remain lower than several years ago have likely supported some of the recovery in the second half of the year. However, it is important to note that annual sales activity declined by one per cent compared to last year and remain well below long-term averages.

New listings in December increased by 11 per cent. However, the number of sales exceeded the number of new listings in December contributing to further declines in inventory.

Reductions in supply and improving demand in the second half of the year have contributed to some of the recent price improvements in the market. However, the recent gain in the benchmark price was not enough to offset earlier pullbacks as the annual residential benchmark price in Calgary declined by one per cent 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.

More information about the 2021 housing market forecast for Calgary will be available at the CREB® Forecast on Tuesday, January 26, 2021.

For more event details, please visit crebforecast.com.


HOUSING MARKET FACTS


Detached

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 is 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 both recorded price gains of nearly two per cent. Despite some of the annual shifts seen, prices remain well below previous highs in all districts of the city.


Semi-Detached

Sales growth in the North East, North, West and South East 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 is helping to reduce 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 per cent in 2020, with the largest declines occurring in the City Centre, North West and West areas.


Row

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 per cent 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 per cent compared to the previous year and remain nearly 14 per cent 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 per cent. The strongest gain occurred in the West district with a two per cent rise.


Apartment Condominium

Sales this month were the best December since 2014. However, it was not enough to offset earlier pullbacks as apartment condominium sales eased by ten per cent 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 per cent this year and is over 16 per cent below the highs set in 2015.


REGIONAL MARKET FACTS


Airdrie

December sales reached a new record high for the month. Improving sales throughout the second half of the year contributed to the annual sales of 1,407, a year-over-year gain of 18 per cent. 

New listings also rose in December and is likely contributing to some of the monthly gains in sales. Overall, new listings have remained well below last year. Along with improving sales, this is causing inventories to decline.

Months of supply has remained below three months since June and prices have trended up. By December, the benchmark price had risen by nearly five per cent compared to last year.

On an annual basis, the gains in price were enough to offset the earlier pullbacks and is creating stability in prices. However, this was not the case for all product types. Detached prices rose by nearly two per cent on an annual basis. Benchmark prices for row and apartment style product eased by a respective seven and one per cent compared to last year.


Cochrane

Record sales in December contributed to the annual gain of 16 per cent, making it the best year of sales compared to the past five years. New listings in 2020 also eased compared to last year. Rising sales and less new listings on the market caused inventories to ease to the lowest levels recorded since 2014.

With months of supply of only two months, prices continued to trend up. December benchmark price was $419,900 and is a 5 per cent gain over last year. Prices have trended up over that past six months but remain relatively stable compared to last year. This is due to easing prices for higher density products offsetting gains in the detached sector.


Okotoks

Despite further declines in new listings, December sales improved. Year-to-date sales increased by nearly eight per cent. The lack of new listings and stronger sales caused inventories to drop to 63 homes in December, the lowest level for any month seen since 2006.

The lack of inventory and high demand has supported increasing prices for the second half of the year. As of December, the benchmark price was $434,700, nearly two per cent above last years' levels. Despite the recent gains, 2020 benchmark prices remain over one per cent below last years' levels.

However, this could be due to steeper price declines for semi, row and apartment style product.

 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.



For more information, please contact: 

Economic Analysis 
Email: stats@creb.ca
Phone: 403-263-0530

October’s Housing Marketing Snapshot: The Numbers Aren’t Slowing Down

Canadian neighbourhood
October was another busy month for Canadian home buyers and sellers! Housing activity across the country continued to increase from September into October, begging the question: is this trend here to stay? 

Check out October’s stats and share the info with your clients to help them along their home buying journey.
Download Now
CREB® Media Release

Detached homes drive Calgary sales growth in October


City of Calgary, November 1, 2020 –

With strong gains in the detached sector, October sales in the city reached 1,764 units. This is a 23 per cent increase over last year and well above longer-term averages.

The gain in citywide residential sales outpaced the growth in new listings, supporting tighter market conditions and improving prices.

“Over the past several years, higher lending rates and the stress test pushed many out of the detached housing market. However, recent declines in rates, combined with prices that are lower than several years ago, have brought back some of that demand,” said CREB® chief economist Ann-Marie Lurie.

“This is helping support more balanced conditions and price improvements in the market. However, price improvements are not occurring across all product type and price ranges and downside risk still hangs over future conditions.”

Improving sales over the past four months were not enough to offset the pullbacks in the second quarter, leaving year-to-date sales nearly six per cent below last year’s levels.

The same is also true for prices. Benchmark prices have trended up over the past four months and October prices were slightly higher than 2019. On a year-to-date basis, prices are one per cent lower than last year’s levels and nearly 10 per cent below previous highs.


HOUSING MARKET FACTS


Detached

Detached sales totalled 1,139 in October, a year-over-year gain of 35 per cent. Unlike earlier this year, October’s largest gains in sales occurred for homes priced above $600,000. Easing prices for more expensive homes could be supporting this rise in sales.

There were more new listings this month than levels recorded last year, but inventories still eased, causing the months of supply to drop below three months. This is a significant improvement from the four-plus months recorded over the past several years.

There is, however, significant variation by location and price range. Detached homes priced under $500,000 are reporting less than two months of supply, supporting some price gains depending on location.

When looking at price movements by district, the only city district to record further price declines was the City Centre. The South and South East districts recorded year-over-year price gains of around four per cent. Despite recent price movements, prices in all districts remain far from recovery and are well below previous highs.


Semi-Detached

Sales activity trended up over the last month and new listings eased. This is causing inventories to decline and the months of supply to fall to just above three months.

The tighter market conditions continued to support some monthly gains in prices. Despite these gains, the October benchmark price remained nearly one per cent below last year’s levels. However, activity varies significantly based on location. Year-over-year prices eased in the City Centre, North West and West districts, offsetting the price gains in the other districts.

Despite improvements over the past several months, year-to-date sales remain over six per cent below last year’s levels and over seven per cent below long-term averages. Slower sales activity has been mostly driven by pullbacks in the City Centre, North West, South, West and East districts of the city.


Row

There were significant year-over-year declines in the City Centre and West districts, but citywide row sales improved over last year’s levels and year-to-date activity sits only two per cent below last year.

Inventory remained relatively stable this month, keeping the months of supply around four months.

Citywide benchmark prices were $274,400 in October. This is a slight improvement over last month, but nearly six per cent below last year’s levels. The price decline was mostly caused by the significant drop in row prices in the West district of the city.


Apartment Condominium

For the seventh consecutive month, apartment condominium sales eased compared to last year’s levels, resulting in year-to-date sales of 1,999 units.

This represents a 15 per cent decline from last year and is nearly 30 per cent below longer-term averages. The only sector of this market showing signs of improvement is the under-$200,000 segment. Sales have improved in this segment, but it has not been enough to offset declines in all other price ranges.

Citywide sales have been easing, but new listings have been on the rise. This is causing year-over-year inventory gains and is halting positive momentum in prices. As of October, the benchmark price totalled $248,600, similar to last month and over one per cent below last year’s levels.

Overall, apartment condominium prices remain over 17 per cent below previous highs.


Airdrie

With significant gains in the detached sector, sales once again improved this month compared to last year. The increased activity contributed to the year-to-date sales of 1,199 units. This is a 13 per cent increase over last year’s levels.

The year-over-year gain in new listings was not enough to outpace the sales gains. As a result, inventories continue to trend down compared to the previous month and remain well below last year’s levels. This caused the months of supply to remain just above two months.

Citywide year-to-date benchmark prices remained relatively stable compared to last year. However, activity does vary by product type. Detached year-to-date benchmark prices have increased by one per cent, while prices in all the other sectors remain below the previous year’s levels.


Cochrane

Sales activity this month rose compared to last year’s levels, contributing to a year-to-date increase of nearly ten per cent. Meanwhile, new listings have not kept pace with sales, causing reductions in inventory and the months of supply, which dropped to three months.

Tighter housing market conditions are supporting price gains. Benchmark prices trended up for the fourth consecutive month and, as of October, were over two per cent higher than last year’s levels. Despite the recent gains, year-to-date prices remain one per cent below last year’s levels.


Okotoks

Improving sales in October were enough to push year-to-date sales up by one per cent. However, new listings contracted by a significant amount, causing inventory levels to ease and the months of supply to fall below two months.

Persistent tightness in this market is supporting further monthly gains in prices. After five consecutive months of rising prices, October benchmark prices rose above last year’s levels. However, price gains have been driven by improvements in the detached market.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

-30-


For more information, please contact: 

Economic Analysis 
Email: stats@creb.ca
Phone: 403-263-0530


November 1st, 2020

Calgary Long Term


While the realist and the optimist argued about whether the glass was half empty or half full, the opportunist drank the water. 


I am frequently asked by clients “what do I think the long term prospects for Calgary’s Real Estate Market are?”


In the short term, two-to-three years, Calgary is in for a rough ride. There is no avoiding it, our downtown commercial office space has a 25-30% vacancy rate. There are continued layoffs in the oil and gas sector, most recently the merger between Cenovus and Husky is expected to result in a 25% reduction in their workforce, adding to Calgary’s 12.6% unemployment rate. World wide demand for oil is expected to remain below normal due to the pandemic. Gathering and travel restrictions are putting extreme pressure on the hospitality and tourism industries.  We have a federal government that if not openly hostile to our primary industry, is at least not supportive of it. And finally, we are at the end of the mortgage deferrals offered by most major banks. The above will make a housing recovery in the short term unlikely for the following reasons: 1) when facing financial uncertainty people do not make major purchases like houses. 2) One in five mortgages was deferred in Alberta, a significant proportion of those will likely not be able to resume making payments and will fall into foreclosure. 3) The pandemic has caused people to use up personal savings and this combined with high unemployment/underemployment makes it difficult for buyers to qualify for mortgages. 


But what happens four to five years from now? Can Calgary bounce back? Are we destined to be the next Detroit, a failed one industry city with a hollowed out downtown, or are we the next Boulder Colorado, a destination city with a diversified economy where people come to live for the exceptional and affordable quality of life?


I would argue the latter. Calgary consistently ranks among the top places in the world to live, we have a young well educated population, we are a key logistics hub, and we are among the most affordable places to live in Canada in terms of percentage of income required to own a house (35% compared to Toronto 64.5% and Vancouver 74.7%).


 With some of the lowest income and corporate tax rates in Canada, a well educated workforce, and thanks to the above mentioned commercial vacancy rate, Calgary is an attractive place for businesses to set-up shop. As a result, in spite of the pandemic, there have been several recent announcements of technology companies investing in Calgary, Suncor is relocating the head office of Petro Canada to Calgary, many of Calgary’s biggest oil and gas companies are transitioning to become “energy” companies as they shift capital to investments in wind and solar power, and there is a surge in demand for natural gas (as more wind and solar projects are built, you need natural gas plants to provide back-up power for when there is no wind/sun). None of the above are in the near-term, these investments likely won’t bear fruit for several years, but they are laying the foundation for what will be a significant recovery for Calgary. 


So in the next two to three years with house prices depressed, a continued demand for rental properties, and record low interest rates there lies a lot of opportunity to accumulate real estate. Will you sit and debate how good or bad things might get, or will you take this opportunity and drink the glass of water?


Sincerely,

Jamie Palmer

President

Power Properties


CREB Media Release


Home sales rise along with supply


City of Calgary, October 1, 2020 –

September sales activity jumped to 1,702 units, the strongest September total since 2014.

New listings in September improved over last month, but levels remained comparable to the previous year. The increase in sales relative to new listings did prevent any monthly gains in inventory levels, but supply in the market is still down 12 per cent compared to last year.

"The recent rise in new listings, combined with low lending rates and softness in prices, has helped support some of the recent upward trend in sales," said CREB® chief economist Ann-Marie Lurie.

"However, conditions vary significantly based on the price range and property type."

The adjustment in supply relative to demand has caused the housing market to move toward more balanced conditions. The current 3.7 months of supply represents the most balanced conditions seen for September in over five years. This has helped support some of the recent monthly gains in prices.

Total residential benchmark prices have trended up over the past three months, resulting in September prices that are similar to prices recorded at the same time last year.  

Despite some of the recent improvements, the impact of COVID-19 is still present. Year-to-date sales remain nearly nine per cent below last year's levels, while city-wide prices are still over one per cent lower than last year. Considerable risk also weighs on the housing market due to economic uncertainty and a struggling labour market.


HOUSING MARKET FACTS

Detached

With significant gains in the $400,000 - $600,000 range, September sales are the highest they have been since 2014.

Improving sales and easing new listings resulted in further reductions in inventory levels and caused the months of supply to ease to balanced territory. Recent improvements in the supply/demand balance have supported some upward price movements. As of September, the benchmark price was nearly one per cent higher than last year.

However, the year-over-year gains have been driven by the more affordable end of the market, as prices remain well below last year's levels in both the City Centre and West districts of the city.

Semi-Detached

Given some recent monthly gains in new listings, sales in this sector improved in September, but at a slower pace than both the detached and row sectors. This could be related to the significant pullback in inventory.

September inventory levels were nearly 21 per cent lower than last year, the largest percentage decline in inventory among all property types. This shift in supply, along with improving sales, has started to help reduce the oversupply in this sector and ease the downward pressure on prices.

September prices remain nearly two per cent lower than last year's levels, but prices have started to improve in the South, South East and East districts of the city.

Row

Sales in this sector have continued to trend up for the past several months and September sales were significantly higher than last year's levels.

While it was not enough to offset the pullback that occurred during the COVID-19 shutdown, row sales activity is four per cent lower than last year's levels. The growth in sales could be related to the significant price adjustment that has occurred in this sector.

Prices in this sector have eased by seven per cent compared to last year and remain nearly 17 per cent below previous highs.

Apartment Condominium

All other sectors have seen some recent year-over-year gains in sales, but this sector continues to trend in the other direction. Year-to-date sales declined by 16 per cent, the largest decline among all property types.

At the same time, new listings continue to rise, which is causing further inventory gains. This is keeping the months of supply above seven months.

There have been some districts showing signs of price stabilization, but overall, year-to-date prices have eased by more than two per cent, amounting to a total adjustment from 2014 highs of over 18 per cent.


REGIONAL MARKET FACTS

Airdrie

For the fourth consecutive month, year-over-year sales improved. As a result, year-to-date sales for the city total 1,055 units, a nine per cent increase over the previous year.

While new listings did rise this month, the improvement in sales outpaced the gains in new listings, preventing any significant shift in monthly inventory levels.  However, inventory levels are over 20 per cent lower than last year's levels. And the months of supply has fallen to levels not seen since 2015. While prices remain below previous highs, tighter market conditions over the past four months have supported several months of price growth and September price levels are nearly one per cent higher than last year. These price gains were enough to cause year-to-date levels to stabilize relative to last year.

Cochrane

A reduction in new listings limited sales growth in September compared to August. However, September sales remain higher than last year and contributed to a year-to-date gain of nearly nine per cent.

Rising sales and easing inventories have kept the months of supply below four months, the lowest level seen since 2014. Tighter market conditions have supported an upward trend in prices over the past three months. The recent price gains did translate to year-over-year gains in September, but were not enough to offset earlier pullbacks, as year-to-date prices remain nearly two per cent lower than last year's levels.

Okotoks

September sales continued to improve from the low levels recorded earlier in the year and levels recorded last September.

However, recent improvements were not enough to offset earlier pullbacks. Sales remain three per cent lower than last year's levels, but this could be related to reduced inventory in the market.

Reductions in supply relative to demand have caused the months of supply to decline to three months. The tighter market conditions have caused prices to trend up over the past four months. However, both September and year-to-date prices remain lower than previous year's levels.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

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For more information, please contact: 

Economic Analysis 
Email: stats@creb.ca
Phone: 403-263-0530

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