Calgary Housing Market Maintains Rebound

In 2020, as housing markets across the country surprised many with a stronger-than-expected rebound in the second half of the year despite record-high unemployment rates and significant job losses, Calgary, AB, did not hit record-high sales in the third or fourth quarters, but still posted some of the strongest sales relative to the past five years, says the Calgary Real Estate Board. This was nearly enough to offset the initial losses recorded during the first shutdown caused by the pandemic. “It is expected some of the momentum recorded at the end of 2020 will continue into 2021, fueled by exceptionally low lending rates and pent-up demand,” says Ann-Marie Lurie, its chief economist. “While sales are expected to rise by nearly five per cent on an annual basis in 2021, persistent economic challenges are expected to prevent stronger growth in our housing market.” Reduction in supply relative to sales is the primary reason the Calgary housing market returned to more balanced conditions by the end of 2020. The pullback in new listings relative to sales activity resulted in inventory levels falling to the lowest levels seen in the past several years.