RedLion Group
#168, 8060 Silver Springs Blvd. N.W. Calgary, AB, Canada

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10 THINGS I LEARNED FROM THE CREB FORECAST THIS WEEK 1. A strong 2nd half of 2020 in strongest sales in past 5 years lend to the same momentum in 2021 with exceptional low lending rates and pent up demand. We anticipate a rise in sales by 5%. 2. Reduction in supply relative to sales is the primary reason the Calgary housing market returned to more balanced conditions. New listings will start to rise as Covid restrictions begin to lesson. ... 3. 2021 annual prices are forecasted to improve by over 1%. 4. Combined with lower rates and previous price declines, could support stronger-than-expected demand growth from first-time homebuyers. 5. Consolidation in the energy sector is expected to continue, which could impact employment and housing activity, especially in the higher price ranges. 6. Given the global magnitude of the Covid crisis, full economic recovery is not expected until late 2022 at the earliest. Alberta GDP forecasted to be 4.5% recovering from a -8.3% from 2020. 7. Alberta's population growth was the highest among the provinces and above the national average and will continue to grow. As these numbers are still lower than what it was in the past, vacancy rates remain relatively higher; lessoning the demand for renters tp move into home ownership. As this may be true, I personally are seeing more renters pursuing their 1st home purchase. 8. Five year discounted mortgage rates offered in the market are just above 1%, half the discounted rates offered just 2 years ago. The bank of Canada has indicted rates will remain low for the next several years. 9. Job loss in the professional sector (Oil & Gas) is worrisome, as these are typically higher paid positions. Having said that, the employment rate dropped at the beginning of the shutdown, but it quickly recovered at each end of the shutdown. 10. The Detached home market remain the strongest amongst the home products. Much of the price gains attribute to the low to mid-priced products. Currently homes, under the $550,000 price range are selling over night with many in multiple offer scenarios. 2nd to detached home sales would be in Row homes due to its affordability pushing it into more of a balanced market, with sales expected to improve. Rising supply levels in Semi-Detached homes will somewhat offset the gains, but this segment is expected to remain relatively balanced with the modest price growth. The resale of condominium apartment sector has struggled with too much supply relative to demand for several years, resulting in price adjustments of 16% since 2014. Slower apartment starts in the new-home sector will help slow supply gains in 2021, but we still expect listings to rise. At the same time, fewer options for low-priced product in other property types could start to support sales improvements in this sector.

COMING SOON! 1935 SF 6 bedroom, +Den. 3.5 bath. Walkout Basement. Recently renovated. Newer roof, eaves, skylight, furnace. EDGEBANK CIRCLE NW. $625,000

Media release: Modest gains in Calgary housing market expected in 2021 Calgary, Jan. 26, 2021 In 2020, housing markets across the country surprised many with a stronger-than-expected rebound in the second half of the year despite record-high unemployment rates and significant job losses. Calgary did not hit record-high sales or prices in the third or fourth quarters, but still posted some of the strongest sales relative to the past five years. This was nearly enough to of...fset the initial losses recorded during the first shutdown caused by the pandemic. It is expected some of the momentum recorded at the end of 2020 will continue into 2021, fueled by exceptionally low lending rates and pent-up demand, said Ann-Marie Lurie, CREB Chief Economist. While sales are expected to rise by nearly five per cent on an annual basis in 2021, persistent economic challenges are expected to prevent stronger growth in our housing market. Reduction in supply relative to sales is the primary reason the Calgary housing market returned to more balanced conditions by the end of 2020. The pullback in new listings relative to sales activity resulted in inventory levels falling to the lowest levels seen in the past several years. As we move into 2021, we anticipate new listings will start to rise, as COVID-19 likely caused many homeowners to delay listing their homes. We could start to see some supply come back in 2021, as concerns regarding the spread of the virus ease. Persistently high unemployment rates could also weigh on some existing homeowners who may need to sell their homes. Growth in supply is expected to offset some of the gains in sales, pushing our market to the upper bounds of balanced conditions and slowing price recovery. However, the price gains that occurred at the end of 2020 are not expected to be eroded and 2021 annual prices are forecasted to improve by over one per cent. This year has been filled with twists and turns all over the world. The Calgary housing market was no exception, said Alan Tennant, CREB President and CEO. However, our local REALTORS continued to serve at a high level by connecting homebuyers and sellers through this difficult period in a safe and timely manner. See more

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