Thanks to a recent bump in new listings, Okotoks sales activity in the first quarter rose to the best levels recorded in over a decade.
Over the past several quarters, demand was somewhat restricted by the lack of new listings coming onto the market. New listings did rise this quarter, but the strong sales response did little to change the persistent sellers’ market conditions.
Inventory levels have been exceptionally low for the town, remaining over 40 per cent lower than levels typically seen in the first quarter. Low inventory levels and strong sales caused the months of supply to average less than two months. This is significantly lower than longer-term trends that have seen an average of just over five months.
Tight market conditions have persisted for the past three quarters. Sellers’ market conditions have placed significant upward pressure on benchmark prices, which climbed from $414,000 in the second quarter of 2020 to over $442,000 in the first quarter of this year.
Prices currently sit over five per cent higher than last year’s levels and are comparable to previous highs. However, there are differences depending on product type, with most of the gains coming from the detached sector of the market.
There have been some improvements in the prices for higher-density product, but those sectors still have prices that remain well below previous highs.