The housing market in Cochrane is slim pickings, but despite low levels of new listings, sales reached record levels in 2021.
The sales-to-new-listings ratio exceeded 100 per cent for four of the past six months causing inventories to drop to the lowest levels seen in more than a decade, said the Calgary Real Estate Board (CREB)
"We've seen sales have been extremely strong while supply has been really tight," said CREB chief economist Ann-Marie Lurie.
Homes, specifically detached or semi-detached homes, are going quickly, Lurie said, and that demand is driving up prices.
As of December, the benchmark price was nearly 10 per cent higher than reported this time last year, CREB said. Overall, on an annual basis, the benchmark price increased seven per cent, reflecting a new record high for the town of Cochrane.
"We haven't seen inventory this low for some time," Lurie said.
This trend is not all that surprising, though, she said, noting sales were really strong beginning the latter half of 2020.
Lurie points to lower interest rates introduced around that time as a main driver.
"Rates that low brings a lot of people back," she said.
"Through the pandemic, savings have improved for people who weren't impacted," she said, identifying the potential contributing factor to higher sales.
The COVID-19 pandemic also seemed to push buyers outside the city limits, Lurie said. This, she said, was likely due to more affordable housing options typically associated with satellite communities.
"In general, prices for detached homes tend to be more affordable in outlying areas or they offer more," she said.
Changes in lifestyles introduced by lockdowns and work-from-home orders are also considered a factor.
"That commute time is less of an issue and that's something we're seeing play out."
But, Lurie said, the demand should cool a bit as higher rates expected in 2022.
"Outlying areas remain relatively strong because there's been such a lack of supply and people are still looking to get into that market."
