Affordability drives demand growth in communities near Calgary

Sunday, February 14, 2021   /   by Sergey Korostensky

Affordability drives demand growth in communities near Calgary

Home sales continued to grow last month in Calgary’s bedroom communities, recent figures show. Calgary Real Estate Board resale statistics released earlier this month show sales in communities including Airdrie, Cochrane and Okotoks among others posted significantly higher sales, year over year for the first month of 2021.

“These markets are quite tight and facing very similar trends” to Calgary, which saw its sales rise by more than 40 per cent last month, says Ann-Marie Lurie, chief economist with CREB

Only High River saw a decline of 22 per cent with 12 sales occurring last month.

Demand for single-family homes — the predominant housing type in these markets — has driven sales. Lurie adds this housing type often comes with a lower price point than in the city.

Most communities show signs of being in sellers’ market territory, she says. Like Calgary, many communities also feature low inventory leading to price gains. Airdrie, the largest bedroom market, saw 103 sales last month, up almost 40 per cent over last year, while inventory dropped more than 31 per cent.

The benchmark price of an Airdrie home also grew by nearly six per cent to $349,100. Among single-detached homes, prices grew by seven per cent to $387,800.

Only Strathmore saw its benchmark price for a single-family home fall, a drop of almost 11 per cent to $285,000. Still, sales were up about nine per cent, year over year, in January (12 total) while inventory fell by about 34 per cent — though supply remains high at more than six months.

By comparison, the most active markets — Okotoks, Canmore, Airdrie and Cochrane — have supply levels below three months.