by Jared Chamberlain
Calgary Real Estate News - September 2020 Market Update - Are Houses Even Selling? September was an interesting month for a lot of reasons. It was full for many parents who need to decide if they will put their kids in the classroom or learn virtually. For real estate, it was the busiest market we've seen since 2014. So, let's talk about the Calgary real estate market. What's happening? Are houses even selling anymore? All Condos & Houses The benchmark selling price of all condos and houses was down 0.2%. But the actual number of transactions went up 25% compared to last year. People are not taking holidays anymore. All the benchmarks that we usually live in life are gone. Going away for the summer, having kids in school, having people over for Thanksgiving, all of these are not happening because of the pandemic. Thus, people are trying to change their four walls, which have resulted in moving. They might have lived in a condo, and they're now thinking of renting it out because they used to spend a lot more time in the office. Some people aren't even slated to be back in the office for another year. How do you even prepare for that? New Listings It was almost the same amount of new listings coming on the market. It went up by 0.1% only. But the actual inventory or number of homes for sale has dropped by 12%. In our brokerage, we've seen a lot of multiple offer scenarios. There are a lot of backup offers being submitted. I think buyers have been used to having a lot of time to watch a house and wait for price decreases. Then all of a sudden, they were just disappearing. There are houses on the market for quite a while. All of a sudden, buyers popped up.
There is an exciting push in the market that hadn't been there for a time. Detached Houses The numbers for detached houses is crazy. The number of year-over-year sales went up 28%. That's ridiculous. I wonder how many resale homes versus new homes are. Construction costs are going up. They can't drop their prices or adjust their prices. We do not see prices drop yet. We do not see things change like crazy in terms of value. For sellers who are thinking of making that move, it can be a fantastic time because there's a lack of inventory out there. The power is now in your hands. Semi-detached Houses Semi-detached has also increased. It's up by 22%. Though there were only 152 sales last month, it's still a lot. Year-over-year prices have only dropped by 1.8%. There are some details tied to that. People are looking at the semi-detached product instead of condo options. If they can afford that and have dogs or kids, it can be a little bit friendlier. Row Houses (Townhouse) This one is crazy. The year-over-year increase was 48%. There are a total of 256 townhouses sold this month. But, what happened there was a 7% decrease in the benchmark selling price. Because of that 7% decrease, more people were coming to the market. It could be those first-time buyers coming out of rentals. If the interest rate is at 1.6, 1.8, 1.9, or anything below two, it is flipping free money. Buyers can take advantage of it. Again, if you work from home, you want a little more space and a basement. We're just doing so much more at home.
Space is always something nice to have when there's more than one of you in a house. Apartments This is the only segment of the market that dropped this month in terms of sales. Everything else increased by 20% to 48%. Condos have the only number of sales that dropped year-over-year. We've all seen the cranes. We've all seen the continued condo development in Calgary. Calgary's size is like New York. We just don't have the density. Condo construction is with the city council. That's been on their plans for a long time. We've seen an abundance of supply. Some people are selling their condo this year and moving back home. The whole world is in chaos, so four condo walls have felt pretty small for people as we weather this storm. If we want to buy a condo, bear in mind that every apartment is managed very differently. Some buildings are managed better than others. There have been more special assessments over the last little while. There are still some great condo opportunities in well-run buildings. There are some fantastic deals, generous square footage and just opportunities to live more inner-city without a million-dollar price tag. You just need to dig deeper into those details. It was a record September! For October, it will be interesting. I think everyone is making plans for the future but in smaller increments. No one knows what Christmas will look like. Let's hope that things continue to get back to normal. It's an interesting time, but you have to live somewhere. And it's important to love where you live. If you have questions about the market or anything about real estate, reach out to us at firstname.lastname@example.org.