The Calgary real estate market, like many others, faced unprecedented challenges during the COVID-19 pandemic. In April 2020, sales plummeted to just 573 units, significantly lower than the previous year, as the pandemic and associated restrictions took a toll on the market. The average price of a detached home also saw a decline during this period.
However, 2021 marked a dramatic turnaround. By March 2021, sales surged to 2,903 homes, nearly 150% more than the previous year, hitting a high not seen since 2007. This rebound was driven by lower interest rates and increased disposable income, alongside a jump in new listings. The benchmark home price in March 2021 rose by 6% to $441,900, signaling a strong recovery.
April 2021 set a new record for the month, with 3,209 homes sold, and the benchmark housing price climbed to $451,400, a significant increase from the previous year. This recovery extended to the condominium and apartment market, which saw the strongest sales level in six years.
This rebound demonstrates the resilience of the Calgary housing market. For potential buyers and sellers, this presents both opportunities and challenges.
Advice for Buyers
Capitalize on Low Interest Rates: With interest rates still relatively low, it’s a prime time for buyers to secure a mortgage.
Be Prepared for Competition: Increased sales activity means more competition. Buyers should be pre-approved for mortgages and ready to make decisive offers.
Consider the Long-Term: Look for properties in areas with potential for future growth, particularly those benefitting from economic diversification beyond the oil and gas sector.
Advice for Sellers:
Price Competitively: While the market is recovering, overpricing can deter potential buyers. Price your property competitively to attract interest.
Focus on Presentation: Well-maintained and staged homes tend to sell faster and for better prices.
Understand the Market: Keep abreast of market trends, and consider timing your sale to coincide with high-demand periods.
Commercial Real Estate:
The commercial sector also faced challenges but is gradually recovering. For investors, it’s essential to assess the long-term viability of commercial properties, considering trends like remote work and online retail. Diversification in property types and careful market analysis remain key strategies.
In conclusion, while the Calgary real estate market faced significant hurdles due to the pandemic, its strong recovery is a testament to its resilience. Both buyers and sellers can find opportunities in this market, provided they stay informed and adapt to the evolving landscape. For those interested in commercial real estate, a strategic, well-researched approach will be crucial in navigating post-pandemic challenges and capitalizing on emerging opportunities.
References
- CTV News. (2021). “Calgary overcomes COVID-19 real estate slump with flurry of sales in March.” Retrieved from https://calgary.ctvnews.ca.
- Global News. (2021). “Calgary home sales up 462 per cent, reach hit record high in April: CREB.” Retrieved from https://globalnews.ca.
- CTV News. (2020). “Calgary home sales in April drop by 63 per cent since last year.” Retrieved from https://calgary.ctvnews.ca.
