Last month, the city’s benchmark price for a home rose to $473,400, which is nearly 10 per cent higher than last month, according to the Calgary Real Estate Board (CREB®).
Ann-Marie Lurie, the chief economist for the organization said that Airdrie has seen exceptionally strong sales activity, but that supply hasn't really been keeping pace.
“It's a seller's market and has been for the majority of 2021 and it's been a seller market for several consecutive quarters,” she said. “This is why it's causing the price kind of gains that we've seen.”
According to data from CREB, Airdrie had 362 sales in March 2022, the second-highest, beat out by Calgary. Airdrie’s sales made up 7 per cent of total sales for the month in the region. While the benchmark price was $473,400, the average price for a home in Airdrie was $503,017. When asked if these prices might indicate a sudden bubble bursting in real estate, Lurie said there are several factors that should be considered.
“Some of what we're seeing is because there has been a lack of supply. I think some context is important because prices really just recovered,” Lurie said. “That being said, when you have this type of price growth, it does create that concern.”
However, when forecasting the future of the regional real estate market, she said that whether or not a bubble has been made and whether or not that bubble will crash will depend on supply and demand.
“It's going to take some time before this market even returns to balanced conditions, but as it does, I do expect that price growth will start to slow,” she said. “At the same time for a full price adjustment; we would need to see a really drastic change in either supply or demand conditions, which isn't on the near horizon.”
Detached homes continued to be the most sought-after real estate commodity, with well over 200 sales.
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