Fuelled by sustained buyer demand, Calgary’s new multi-family home market closed out 2021 by recording its highest annual sales total since 2014.
According to Zonda Urban’s Q4-2021 Calgary Multi-Family Take, 849 quarterly sales pushed the annual total to 3,505 — 25 per cent higher than 2020 and 21 per cent higher than the total recorded in 2019.
While sales decreased nine per cent from the previous quarter, the fourth quarter saw the third-highest quarterly total posted during the last four years.
Historically, fourth quarter sales totals have shifted by as much as 20 per cent from third quarter figures, although the Calgary market has seen single-digit quarter-over-quarter fluctuations during the last three years.
“The stabilizing of fourth quarter sales totals provides further evidence of stability and strengthening of Calgary’s new multi-family home market,” the report stated. “This is further supported by the increase in investors from in and out-of-province who are looking to capitalize on the affordable pricing amid strengthening market conditions.”
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The overall average unit price increased by 1.8 per cent to $386,879 during the fourth quarter. Concrete condominiums saw the largest average price increase, surging from $567,838 to $604,715, while townhome prices rose from $355,092 to $360,437.
The market saw balanced demand across product types, with townhomes accounting for 51 per cent of total quarterly sales and condominiums making up 49 per cent.
Elevated sales totals significantly reduced Calgary’s inventory levels during 2021. Total move-in ready inventory decreased by 52 per cent from the previous year, with 402 current move-in ready units representing the lowest total since 2015. Total released and unsold inventory levels also decreased by 31 per cent year-over-year.
Total inventory levels have remained under 3,000 units for three consecutive quarters for the first time since Zonda Urban began tracking the numbers, reflecting sustained buyer demand.
“Factors that have contributed to higher sales and lower inventory include the continued presence of out-of-province investors, more active entry level buyers, and supply chain shortages,” said the report.
Calgary’s outer sub-markets continue to attract the most buyer demand. The Outer South recorded the most sales of all sub-markets during the fourth quarter with 315, accounting for 37 per cent of total quarterly sales.
Inner sub-markets made up 27 per cent of total quarterly sales, and finished the year by recording over 200 sales combined in three consecutive quarters for the first time since 2014.
“Considering the substantial expected job gains in Alberta over the next five to 10 years in sectors such as tech and clean energy, the inner sub-markets will continue to be an attractive option for potential buyers and investors,” the report said.
According to Zonda Urban, with Alberta attracting investment dollars and newcomers drawn to the province by affordable housing, Calgary’s new multi-family home market doesn’t show any signs of slowing down in the new year.
“Given Alberta’s positive inter-provincial migration gains in late 2021 and increased investment in the province’s economy, current demand levels are expected to continue into 2022,” the report stated.