Okotoks followed many of the same trends as other markets in 2020.

However, there was a dramatic shift by the end of the year where significant improvements in sales were met with large pullbacks in new listings.

By October, the sales-to-new-listings ratio rose above 100 per cent. Inventories ended the year at half of the previous year’s levels, with a month of supply that represents the tightest conditions since 2014.

The sudden increase in sales could be related to the significant pullback in prices recorded earlier in the year and the low interest rate environment. The tighter market conditions did support some price recovery from earlier in the year, but on a year-to-date basis, prices remained nearly two per cent lower than last year’s levels.

Moving forward, activity in this market will be dictated by the shifts in supply. Both sales and new listings are expected to rise this year, but if conditions remain this tight into the spring, prices will continue to trend up at a faster pace.