A strong start: January home resale figures posts best activity in past six years

Monday, February 1, 2021   /   by Sergey Korostensky

A strong start: January home resale figures posts best activity in past six years

The strong end to 2020 continued into the first month of 2021 with home resales the strongest since January 2014.

Sales were up more than 40 per cent year over year last month in the city, Calgary Real Estate Board figures show.

At the same time, inventory fell by almost 22 per cent while months of supply dropped nearly 45 per cent, year over year. As well, new listings fell by 4.6 per cent.

Growing demand coupled with falling supply led to an increase of 1.9 per cent in the benchmark price of a home in the city to $423,800.

Activity in the single-detached homes segment continued to drive the market, with the benchmark price rising by almost three per cent, year over year, to $492,900.

Only the apartment segment saw a decrease in its benchmark price by 0.4 per cent to $245,100.

CREB chief economist Ann-Marie Lurie stated in a news release growing activity in the market is driven by favourable lending conditions.

Sales grew in every segment, but semi-detached saw the biggest jump over January last year at 68 per cent — though, with 141 transactions, it makes up the smallest share of all housing types.

Detached homes saw a 42 per cent rise with 731 transactions; row sales grew by 33 per cent with 150 resales, and apartment activity increased by 27 per cent with 186 condominiums changing ownership.

Demand remains strongest in the city’s south and east with prices rising between 0.7 and 1.3 per cent compared to the same month last year, reflecting a preference among buyers for low to mid-price homes. In contrast, prices fell in the city centre and west, falling by between two and 4.5 per cent, where the benchmark prices are significantly higher ($479,900 in the centre, and $506,100 in the west).