Whatever "new normal" is coming, the COVID-19 pandemic has reshaped many aspects of the real estate industry in Calgary and across Canada. From changes to the way homes are built, bought and sold, to shifts in buyer priorities and the economic forces at play, it's been a wild ride for REALTORS^®, builders, homebuyers and everyone in between.

Anyone who has walked into a hardware store lately is aware of the current price of lumber, a situation that is creating issues for the homebuilding and renovation industries in Calgary and across the country.

More than a year after it began, the COVID-19 pandemic continues to spark increased interest in Alberta's recreational property market, as homebuyers seek an escape from congested cities.

Long-term remote work, which has been a reality for many Albertans for the last 12-plus months, has also made people realize that if they can work from anywhere, why not work from a cottage, cabin or waterfront property?

With many people trading in their downtown commute for a home office due to the COVID-19 pandemic, proximity to the city centre has been less of a priority for house hunters this year.

In fact, a new emphasis on creating comfortable, productive workspaces within the home and the reduced importance of living anywhere near the office have increased buyer interest in areas just outside Calgary's city limits – where prices are lower and space is plentiful.

Total residential sales in August were relatively stable compared to last year with year-over-year gains in the detached and row sectors.

The second quarter of 2020 marked the first full quarter since COVID-19 began to weigh on the economy.

Calgary housing sales slowed by 35 per cent compared to the previous year. This is better than original expectations, thanks to June figures that were far stronger than initial estimates. The pullback in new listings in the second quarter caused inventories to trend down, preventing a more significant decline in prices.

May sales activity continued to ease, with the largest declines occurring in the detached sector. Additional gains in new listings continued to increase inventory levels.

Citywide sales activity in May totalled 1,726 units, 19 per cent below last year's levels and 24 per cent below longer-term averages. Sales activity in the detached sector declined to levels not seen in over a decade.

"The impact of rising lending rates and stricter qualification levels is causing demand to ease across all product types," said CREB® chief economist Ann-Marie Lurie.

Reality starting to sink in, says board president

Calgarians looking to sell their homes are slowly coming to the realization that it's a buyers' market and are beginning to manage their price expectations, says CREB® president Cliff Stevenson.

"I think there's still something to the fact that sellers are still adjusting to this – to the fact the pendulum has definitely swung in the buyers' favour. I think you've got some sellers that are obviously taking a bit longer to figure this out than others," said Stevenson, noting CREB® officially labelled it a buyers' market in November 2015 after three consecutive months of inventory increases.

Calgary market is hot, hot, hot

Unlike Calgary's weather for most of this year, the city's condo market is scorching hot, said Matthew Boukall, director of residential advisory services with industry analyst Altus Group.

"We're coming off the best year we've had last year and demand remains strong," he said. "There's a lot of pent-up demand for new housing. So from an inventory perspective we're basically absorbing product as it's coming to market. We don't have an oversupply situation whatsoever."