Market fundamentals continue to support growth in demand
Calgary’s home sales are likely to remain above historical levels in 2022 after a record-breaking 2021, according to the Calgary Real Estate Board.
Total home sales in the market reached 27,686 units last year, spiking by 72% annually and ending up 44% higher than the 10-year average, the CREB said.
“Concerns over inflation and rising lending rates likely created more urgency with buyers over the past few months. However, as is the case in many other cities, the supply has not kept pace with the demand, causing strong price growth,” said Ann-Marie Lurie, chief economist at the CREB.
Read more: Calgary’s luxury market remains listless amid economic struggles
The benchmark home sales price grew by around 8% annually to reach $451,567, just a little below the end-year record high established in 2015.
“We are entering 2022 with some of the tightest conditions seen in over a decade,” Lurie said. “As of December, inventory levels are nearly 25% lower than long-term averages for the month.”
Lurie added that this robustness would impart significant momentum on the market during the first few months of this year.
“We expect sales activity will come off of those record levels but remain relatively strong,” Lurie said. “There’s a lot of factors that are still supporting that sales activity and that demand growth.”
