Experts have revealed that the Calgary housing market 2021 is likely to continue as a balanced market throughout the year, however we are presently in a dynamic sellers market, something Calgary hasn't witnessed for quite some time. The pressures of the pandemic are keeping inventory at persistently low levels, while low interest rates and those looking to move up out of smaller living situations are driving demand.
Some of the factors that will impact the housing market are economic issues that have struck the gas and oil sectors. Besides, the global pandemic has caused lockdowns and increased unemployment among other issues. For example this has led to the abolition of open houses.
In 2020, the Calgary housing market experienced a small rise in house prices. In 2021, the price is expected to record a 3 per cent rise in average prices. However, it is a great season for anyone who wants to purchase a new house. There are various factors which have made houses affordable. Currently, the prices are reasonable, and it is okay to purchase a house if you are in a good position to do so.
What is the average cost of a house in Calgary?
In the Calgary real estate market, the price of homes is influenced by the size, age, amenities, location and the property's condition. You'll often find our agents providing clients with a price per square foot calculation, this can give you a good idea of how two similar homes in style and size can vary on price based on their finishes / upgrades / location.
Check out our weekly blog to find current Calgary real estate market statistics we also include a breakdown of the 2020 real estate market and much more!
As you can see from our infographic above, the cost of an average home in Calgary was just under $540,000 in 2020 There were 9,950 detached homes sold, with an average days on market (DOM) of 50 with a median price of $467,500.
While Semi detached homes saw a total of 1,663 sales, 61 DOM, and an average price of $458,252 and a median price of $366,850.
Row Homes saw a total of 2,145 sales, 61 DOM, and they commanded an average price of $310,652 and a median price of $285,000
Finally condominiums saw a total of 2,394 sales with an average of 66 days on the market, and these properties saw a total average price at $252,157 and a median price of $227,000
The cost of living in Calgary is fair. Thus, anyone looking for a nice city to live finds Calgary a great choice. Right now, in the general landscape of the Canadian real estate market, it is a nice time to buy a house in Calgary. This is because the current prices of houses are very low.
Are House Prices Dropping in the Calgary Real Estate Market?
The Canada Mortgage and Housing Corporation (CMHC) warned late in 2020 that the average cost of a house may drop in the next 2 years. As per the Calgary real estate predictions, price is anticipated to drop by 2022, this will be the impact of the current pandemic which had already shaken economy. The economy has faced many challenges, while many people have had their income hit hard by the current lockdowns. There has been loss of jobs, salary reduction, stall of startups, and closure of some big businesses. Besides, migration has faced stalls and the local private sector has faced many challenges and is yet to fully recover from the recession. While we write this blog though, none of this has been realized, our belief is that while interest rates remain lower, this market will likely continue to move, and with prices in Ontario and British Columbia sky rocketing throughout, we're seeing a lot of migration into the city posing Calgary potentially as the next big boom city in Canada.
Is it a good time to buy a house in our Calgary Housing Market?
Real estate is one of the realms, where timing is an essential aspect. Timing in the Calgary housing market has a huge impact on:
- Home options to choose from
- The current prices in the Calgary market
- The possibility and ease in moving in at the moment
But timing can really be personal as well. As mentioned numerous times the market is booming right now for sellers looking to move, homes aren't lasting very long presently (Feb 2021) but this could change, it could change a few ways, the market could continue to drive upwards, it could crash (we believe this to be less likely) or it could remain stable and stagnant (most likely) Timing and getting in at the perfect point is nearly impossible, unless you have a crystal ball, so we recommend looking at it from a personal perspective, and asking yourself whether it's good timing for you. How are your financial reserves, what are your goals, where do you want to live, do you want to be tied to a home, how much can you afford, etc. Asking and answering these and other questions is important to really understand your own timing and whether it's the right time for you to buy.
If you intend to buy a house in Calgary, you will need to consider a few factors that will help you find the right property...
Factors to Consider When Buying in Calgary
The following are some of the various factors to keep in mind when you need to determine the right time for you to buy a home in the housing market in Calgary:
- Inventory: If you have a bit of info on the inventory levels in your community, you will be able to know when is the best time to buy and sell. Typically, if the inventory levels are high, the sales are lower and there's more competition and room to negotiate.
- Prices: There are various factors that determine the price of a home. Indeed, the list price of a home is dependent on the seller. However, if you utilize our experience and knowledge with housing market trends and data, we'll be able to take a strategic approach that addresses price ranges and differences. It's a similar approach we take with sellers when identifying the best price for their home to list at.
- New Listings: Every home buyer wants to take a look at various houses before they could opt for the best. Some seasons / quarters will have few listings while others there are many. It is advisable to look for a house when there are more listings in the market. Presently in this sellers market, homes are receiving multiple offers in the first day on the market, in fact in 2021 we've sold multiple homes above list price, with multiple offers, and back up offers.
- Sales: One of the best ways to demonstrate what is happening on the market is through past and recent sales. In a slower buyers market, this becomes a negotiation piece as we can leverage past sales to create a case for our price and offer.
- Interest Rates: When interest rates are low, the pool of buyers increases, and their buying power increases, this means segments of the market are more readily available and therefore demand goes up which typically results in prices going up and adversely prices would go down as interest rates go up and less people are able to purchase.
When Is The Best Time to Buy a House in Calgary?
Now that we've established that timing the market as a whole is tough and often impossible to get in at the perfect time, we are often asked when is time to purchase a home when you're ready to buy? This comes down to a few factors, where do you see interest rates going, how stable is your job / career, do you want to move in the winter. But in general, you're going to have more options from March through to September / October with more competition (buyers) while the months of November through to February we see less inventory and less competition typically making it a better time for buyers to negotiate. All of this is situational and dependent on various factors, including the current market trends. We recommend booking a coffee with one of our REALTORS® we can chat about your goals, needs, plans and can put together a best plan of action for you specifically. For example, a buyer who is ready to go, approved, and has a lease expiring at the end of April may want to look at shopping / purchasing in January, depending on what they're looking for, it could take weeks to find that perfect home and with the buyers due diligence period and a 60 day possession they could time it where they take possession in the middle of April giving them ample time to move from their rental and find the right property.
Should I sell my house in Calgary?
In this current market? Yes. Prices are going up, with an unforeseeable pandemic impact still to be seen, it's a great time to sell your home. We wrote earlier about homes selling above list price, many multiple offer situations happening every week for the past few months, and inventory low, it's a great time to sell, but this advice won't remain consistent a year from now, and is why you should obtain a free home evaluation. This will give you insight into your homes current market value and where the market is presently sitting.
The Calgary housing market is yet to stabilize, but this may happen sooner than many anticipate. However, with the current market and interest rates, it is likely a good time for you to make a move. You can buy your new home now to live in or rent out. Calgary is an incredible city with many amazing neighbourhoods, it is well run, friendly, and continues to mature and evolve as one of the best cities in the world to call home.
Posted by Calgary Homes Real Estate Partners Team on