Alberta Real Estate Market Update: April 2021
May 18, 2021
Alberta’s real estate market is heating up as provincial sales broke the record for April!
In both the City of Calgary and the Greater Edmonton Area, sales more than tripled from the ultra-low numbers recorded during the first-wave lockdown in April 2020. A shorter-range view also reveals that demand is trending up, as both regions posted sales increases of more than 10% from March 2021.
Naturally, growing buyer demand has attracted more sellers to the market. According to the Alberta Real Estate Association (AREA’s) report, “the province has seen the number of new listings trend up as sellers look to take advantage of the lack of supply.” However, strong sales kept months of inventory below three months (78% lower than in April 2020), leading to what AREA calls “the tightest market conditions recorded for April since 2007.”
With sales on the rise, prices have increased dramatically from last year, though they’ve remained fairly consistent with last month. Across the province, the average selling price for all home types was up 25% year over year and down less than half a percent at $439,440.
April brought record-breaking sales in Calgary as high buyer demand continued! With sales getting quicker and prices headed upwards, it’s still a seller’s game.
The Calgary Real Estate Board (CREB®) reports 3,209 residential sales in the city, representing an increase of 462% compared to April 2020 and 11% compared to March. While the year-over-year comparison yields skewed results owing to low numbers during the first-wave lockdown, this month’s sales broke the record for the month of April, leaving no doubt that homeownership is in high demand.
Like buyers, sellers were eager to enter the market, with new listings totalling 4,670 for a gain of 228% over April of last year and 5% over March. Nevertheless, the high volume of sales brought the sales-to-new-listings ratio up from 65% the month prior to 69% (meaning that for every 100 new listings in April, 69 homes sold), while the average days on market fell from 35 to 33 days over the same period – well below last April’s 55 days.
Though inventory appears to be headed upwards, energetic sales are keeping the markets tipped in sellers’ favour. At the close of April, there were 6,070 active listings (i.e., available homes) on the market, up 8% year over year and 12% month over month. However, months of inventory – which is a measure of how long it would take to sell all available homes at the current rate of sales – remained unchanged from March at 1.9 months.
As such, prices didn’t see drastic changes from the previous month, but they continue to soar above last year. In April, the average selling price for detached homes rose 19% year over year and fell by just $16 month over month to $594,791. For semi-detached homes, the average was up 23% year over year and 10% month over month at $537,761. For rowhouses, it advanced 11% year over year and 1% month over month to $329,931. For condos, it grew 8% and 2% over the same periods to $265,229.
For all home types, the average selling price came in at $509,294 – up 20% from last year owing to more homes being sold in the $600,000+ price range (25% of sales in April 2021 versus 12% a year ago). Compared to last month, prices went up by just under 1%.
The market continued to pick up steam this April as energetic sales were met by a current of new listings!
Comparing this April’s sales to April 2020 yields skewed results owing to low numbers during the first-wave lockdown, but according to Tom Shearer, RAE President, “while we need to keep in mind the drastic difference between this April and last, we are still witnessing a strong spring market so far.”
Indeed, selling conditions appeared to improve in April despite an uptick in new listings: at 4,408, they were up 140% over the same month last year and up 10% from March. But because sales grew at a faster pace, the sales-to-new-listings ratio increased from 60% last month to 65% – this means that for every 100 new listings, 65 homes sold.
With an increasing demand for homeownership, the average days on market fell from 42 days in March to 37 (down considerably from 64 days last April), while the inventory of available homes dropped 3% from last year and rose 12% from last month.
As the law of supply and demand dictates, a larger inventory levelled off price growth on a month-to-month basis; however, prices are still strong compared to April 2020. For single-family detached homes, the average selling price was up 12% year over year and up less than a quarter of a percent month over month to $458,444. For duplexes and rowhouses, it rose 5% year over year and fell less than a quarter-percent month over month to $347,561. For condos, the average price was up 3% year over year and down less than half a percent month over month to $228,741.
For all residential homes, the average selling price saw an increase of 10% year over year and a decrease of less than half a percent month over month to $389,773.
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