Record real estate sales in 2021 further reduced inventory levels and increased competition for available properties in the Cochrane area.

It has been putting upward pressure on housing prices that is expected to continue at least through 2022 until more houses come on to the market.

In its year-end report, the Calgary Real Estate Board (CREB) says Cochrane sales have reached a record high, and inventory levels have dropped to less than a 30-day supply, the lowest levels in over a decade.

Nicole Henson, of CIR Realty, says there were 1,235 houses sold in Cochrane last year, a 71.8 per cent increase over 2020. The average price rose 7.1 per cent to $438,958 on all forms of housing. The average price of a single-detached home rose 9.2 per cent to $519,420.

Rocky View County (RVC) experienced astronomical growth, with sales 80.7 per cent above 2020. They had an average sale price of $1.15 million, a 16.5 per cent increase over the previous year.

Henson says it was a record-breaking year for real estate sales in the rural market, fuelled by enormous provincial, interprovincial, and even international pressure.

That has dropped the supply of homes in RVC to 4.35 months, compared to 9.82 months in 2020. Prior to that, it was in the mid-teens.

She says the pandemic has played a major role in the high demand.

“People don’t need to work from an office and more and more people are working from home, and it appears more will be able to do so permanently,” she explains.

“They’re living in places where lifestyle considerations are a big driving factor, so Cochrane is a wonderful place to raise a family, it’s close to the mountains, it’s close to an international airport, you have all the services in place and Calgary is close by. That makes it really desirable.”

She says the preference is for single-detached homes in Cochrane because of their affordability.

Right now, there are just over 20 on the market. That’s an extremely short supply, considering Cochrane now has an estimated population of over 32,000.

It's not just Calgarians relocated here. Over the last two years, Kendra Watt, also of CIR Realty, says she’s noticed a significant change in the demographics.

“Prices have gone up in Cochrane significantly and the whole Calgary region, but we’re still far, far below the national average, so we’re seeing a lot of people from Ontario and B.C. coming here because it’s so much more affordable for them.”

The COVID crunch has drastically impacted the supply of new builds. Homebuilders stalled the construction of new homes early in the pandemic until they could understand which way was up. Now with more assurance in the market, the industry is dealing with labour and supply issues, and rising costs.

“Normally, the builders will all have a number of spec homes that are available to throw on to the MLS system, but they don’t have anything,” says Watt. “So anybody that wants to move to Cochrane, unless you want a year for your new home to be built, will have to buy something on the resell market.”

Henson agrees.

“What you’re seeing right now is the minute something that’s brand new finished goes on the market, it’s gone in a heartbeat,” says Henson.

There are currently about 47 active listings from one-bedroom condos to million-dollar estates in the market, says Watts, and some of them already have received offers.

With that pressure, offers are coming in, even before all the paperwork is finalized. The day some houses officially hit the market, there’s already a “sold” or “pending” banner on the sign.

Some are being purchased sight unseen by out-of-province buyers with only a virtual viewing. The first time they enter the home is when they get the key.

Multiple offers aren’t uncommon in this seller’s market. That typically means the house will sell above its listed price.

Watt says when there are multiple offers, it means buyers can typically expect to pay $5,000 to $15,000 above the list price.

She says reports from the Toronto market, indicate multiple offers lead to bidding wars in $100,000 increments.

Watt says the preference is for a balanced market, where you have about three months' worth of inventory, coupled with a strong market.

She points out the real estate market is cyclical.

“I don’t think this is going to last forever,” says Watt, “but until those builders and the cost of labour and supplies can get back in check, we’re not going to have enough resell inventory to balance the market again.”