My name is Matt Halladay and I am a local real estate agent in the Calgary area. Calgary has been in a strong seller’s market during 2021. 2022 poises to continue this trend in the Calgary area (known as Census 6 which includes Airdrie, Cochrane, Okotoks, High River, Chestermere, etc.). As a real estate agent, I was able to watch real estate prices over the course of 2021 increase by an average of around 10%. The 2021 statistics show how a number of factors like the pandemic, low interest rates, and economic recovery have grown the value of our real estate. Similar trends may continue in the 2022 markets and the industry outlook is very positive. This past year was one of the strongest years in the real estate industry and has developed an opportunity for individuals and families to create more equity and consider upgrading into a new home, finance new opportunities, and pay down their debts faster.

WHAT HAPPENED IN 2021?

The past year was a wild ride for the real estate industry. I am focusing on the Calgary area where I hold my business. We have seen one of the busiest years on record. In total, home prices were up 10.5% there has been 33,323 home sales in the Census 6 region by the end of November. For reference there were only a little over   20,000 sales in each of the previous three years with static pricing. This is the largest annual number of properties sold in the Census 6 area, and it doesn't include December sales.

WHAT CATALYSTS DID WE SEE?

When the market reacts like this, it's always in accordance with certain key catalysts. Some of those which I thought most influential are displayed in the sections below:

Interest rates

As many of us are aware, interest rates in Canada are historically at extreme lows with the potential for variable rates below 1% (which is mind blowing) and 5 year fixed rates in to sub 2% range.

Recovering Economy

Canadian jobs had reached pre-pandemic levels in 2021, along with recovering oil prices. Oil and Gas was amidst a recovery just before the pandemic hit, which delayed rising oil prices, but in 2021 we saw prices upwards of $85/barrel. Although Calgary is diversifying, this still contributes to a large portion on the local economy.