By Ryan Wyse, Manager, Analytics | October 23, 2020

The Calgary new home market has shown resilience as it continues to deal with challenges surrounding the COVID-19 pandemic. Since the relaxation of the pandemic restrictions during the spring, demand for single-family homes has been comparatively robust, with new homes sales exceeding volumes noted during the summer months in 2019. This trend has been noted in most of the major markets in Canada, where sales of townhouse, semi-detached, and detached housing has recovered more quickly than multi-family built forms.

Calgary new home sales vs spec home sales August 2020
According to BILD Calgary and Altus Group’s latest Calgary Single-Family New Home Report, sales during the summer months have been strong, and activity in August was the highest reported since 2018, when Altus Group began collecting single-family activity in Calgary. The higher level of sales during the summer likely reflects the fact that some of the buyers that would have been active during the spring pushed back decisions to later in the year, as well as low interest rates attracting buyers into the market. The elevated sales volumes seen over the summer have meant the total year-to-date sales are almost at the same volumes as they were in 2019, despite losing two months to COVID-19-related restrictions. Recent momentum is expected to continue in the short term, with September results anticipated to be comparable in volume.
Calgary completed new home inventory August 2020
Demand has been elevated for pre-sale homes, as sales increased 23% month-over-month, and 43% year-over-year. The growth in pre-sales activity comes as completed home inventory has declined. Since March, construction starts for single-family homes have declined and with the uptick in sales, more of the sales activity is occurring within the pre-sale product.

Looking ahead, the Calgary single-family new home market will continue to face challenges through the end of 2020 and into 2021. While there will continue to be some demand for new single-family homes, the potential for further disruption from a second wave of COVID-19 as well as ongoing challenges in the economy will continue to create headwinds for the market.

 

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