Calgary had its strongest third quarter for housing sales since the price of oil plummeted in 2014, according to the latest report by the Calgary Real Estate Board (CREB).
There were 6,628 sales in the third quarter of this year, a sign that even as the pandemic is continuing to dampen the local economy, Calgary's housing market remains resilient, says CREB's quarterly update report released on Wednesday.
The report says much of the growth in demand has been driven by the low interest rates and the fact that many buyers' incomes were not impacted by the pandemic and in fact saw their savings grow.
Overall, residential prices in Calgary rose by one per cent over the previous quarter and are about nine per cent higher than prices recorded in the third quarter of last year, the report said.
CREB's chief economist, Ann-Marie Lurie, says much of the upswing in activity was driven by detached and semi-detached home sales. And she said while supply has risen, it's still somewhat of a seller's market in Calgary.
"Supply-demand balances improved for buyers compared to what we saw in the spring, but the market continued to favour the seller in the third quarter," she said.
The report says the benchmark price is $538,700 for detached homes. That's up 10.5 per cent from last year.
In the semi-detached market, the benchmark price is $427,767. That's up 9.3 per cent from 2020.
For row housing, the benchmark price is $299,933 — 8.5 per cent higher than last year.
And in the apartment-condo market, demand rose in the third quarter, but to a lesser extent, the report says.
"The condominium market never entered sellers' market conditions like other property types, but at five months of supply, this market is considered relatively balanced," the report said.
The benchmark price in this sector is $253,533. That's up by roughly 2.5 per cent year over year.
CREB also notes that, aside from strong resale figures, the newly built side of the market is also doing well, with housing starts up by more than 70 per cent in Calgary.
CREB says in its report that the boost in the local housing market activity is contributing to an economic recovery that's also being driven by the uptick in oil and gas prices.
"This has contributed to employment growth in not only the finance, insurance and real estate sectors, but also the construction industry," the report said.