Housing Market Smashes Records

Aggregate price of a home in Calgary rose 9.9% year-over-year in the third
quarter

CALGARY, October 15, 2021 – According to the Royal LePage House Price Survey released today, the aggregate price of a home in Calgary increased 9.9 per cent year-over-year to $572,200 in the third quarter of 2021. Broken out by housing type, the median price of a single family detached home increased 11.3 per cent to $643,700, while the median price of a condominium increased 2.9 per cent to $225,800 during the same period.  “Sales activity remains high while inventory is low because as soon as good listings come on the market, they sell quickly. We haven’t seen a September with sales as strong as this year since
2005,” said Corinne Lyall, broker and owner, Royal LePage Benchmark. “Inventory is only modestly outpacing sales and buyers are continuing to push themselves financially to be competitive and make the transaction.”  Lyall added that significantly low inventory in the entry-level market has put upward pressure on
middle market home prices.  “During the second quarter, we began to see much stronger demand for larger homes as entry level home prices appreciated at a faster pace and this trend has continued through the third quarter. However, the first-time buyer market will likely continue to be the most active
segment,” added Lyall. “As home prices increase at the lower levels, buyers are realizing that for only a relatively modest amount more, they can shop in a very different home category.”

Royal LePage is forecasting that the aggregate price of a home in Calgary will increase 8.0 percent in the fourth quarter of 2021, compared to the same quarter last year. The previous forecast, released in July, 2021, has been revised upward to reflect the current state of the market.  “We are continuing to see buyers, especially young families, relocate from the GTA. If parents can do their same job or find a new career in Calgary, they will relocate for a better lifestyle.
With half of what they would pay in the GTA, they can afford a large family home in a popular neighbourhood,” said Lyall.

Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions and includes both resale and new build. Nationally, the aggregate price of a home in Canada increased 21.4 per cent year-over-year to $749,800 in the third quarter of 2021. Market activity slowed as a result of a chronic lack of inventory, a persisting challenge for housing markets from coast-to-coast, coupled with the
seasonal summer slowdown. “During the third quarter, the torrid pace of home price appreciation moderated as both demand
and inventory waned, a typical summer market trend in a very atypical year. With easing pandemic restrictions, there was finally something to talk about other than real estate, and people began travelling and socializing again,” said Phil Soper, president and CEO of Royal LePage. “In addition, a year of relentless competition for too few properties drove some would-be purchasers to the sidelines as buyer fatigue set in. Yet their fundamental need or desire for a new
home remains and we are seeing pent-up demand grow. We expect another unusually busy winter season building to a brisk 2022 spring market.”

The Royal LePage National House Price Composite is compiled from proprietary property data,  nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home rose 25.2 per cent year-over-year to $790,000, while the median price of a condominium increased 13.0 per cent year-over-year to $533,600. Price data, which includes both resale and new build, is provided by Royal LePage’s
sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.  Royal LePage is forecasting that the aggregate price of a home in Canada will increase 16.0 percent to $771,500 in the fourth quarter of 2021, compared to the same quarter last year. This forecast is consistent with the company’s previous update in July, 2021.  “Looking back to the late spring of 2020, the Royal LePage benchmark value of a home was $580,000. The subsequent ‘Covid-catalyst’ which drove legions of Canadians to upgrade their living situations, has created a period of exceptional home price growth with real estate values on
track to grow 33 per cent by year end,” concluded Soper.

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