Calgary Real Estate Forecast

Any setbacks witnessed in the first half of 2020 in the Calgary housing market due to Pandemic were recovered in the second half of the year. 2020 ended with higher home sales than 2019. Monthly sales in December were the highest since 2007.

Who’s Driving Demand for Calgary Real Estate? Move-up buyers and first-time home buyers are currently driving demand in the Calgary real estate market, which is expected to continue into 2021. The most popular property type among these Buyers is single-detached homes. According to the Re / Max forecast, in 2021 the average price will see an increase of 3% or from $458,742 to $472,504. 

 First-time home buyers in Calgary are typically single and young couples, looking for single-detached homes. The market segment ranging from $300,000 to $499,000 had a share of over 50% of total sales. Move-up buyers in the Calgary housing market are typically families who have been in their home for a number of years, and whose jobs haven’t been affected by COVID-19 or the economy. There has been no real hesitation from move-up buyers who are looking to purchase a new home due to the current climate in 2020. Many of those who are buying have gone through a 5-year recession and have jobs that have been un-impacted by COVID-19. Calgary’s luxury market is currently driven by move-up buyers with the average starting price for a luxury home in Calgary being $750,00. While COVID-19 has not directly impacted the luxury market in Calgary, it has impacted the economy, which is expected to be a long-term impact. Calgary’s Hottest Neighbourhoods Calgary’s top-selling neighbourhoods in 2020 were North Central, South Central and North West/Central West. North Central is popular due to its proximity to both the airport and downtown, while South Central is a newer area that is close to the hospitals. These neighbourhoods are expected to continue to be in-demand in 2021 because of their access to amenities and transit.

Calgary New-Home Construction Calgary’s new-home construction sales are down currently, with many developers currently looking for land to build on. There was a project that was turned down a few months ago, as the developers did not want to take on more expenses due to COVID-19 and the current economy. The number of homes currently being built in Calgary is sufficient to meet the current demand, and new-home sale prices are very competitive compared to the resale market.