Alberta Real Estate Market Update: August 2021
Despite market slowdowns experienced across the country due to limited supply, Alberta is still on pace to reach record sales levels this year. Alberta’s real estate market continued to favour the seller in August. Average price, the number of homes sold, and new listings all went up year-over-year. However, the same categories went down by 10% or less compared to last month showing some typical seasonality where the market slows in the summer months.
The sales-to-new-listing ratio in Alberta remained relatively consistent from last month, only increasing by 2% in August. New listings are up 5% year over year but did experience a 10% decline from last month. Still, the number of homes sold is 18% higher than last year.
Though sales across the province dropped by 7% compared to July, August’s total of 6,890 keeps Alberta on pace for a record-setting year. According to the Alberta Real Estate Association (AREA), “While this is not an uncommon activity for August, it is important to note that the Alberta sales are still on pace to reach record levels this year. Any adjustments occurring in supply were not enough to offset the demand, and the market continues to favour the seller.”
Average selling prices held steady in August. Across the province, the average selling price for all home types grew 4% year over year and decreased only 2% month over month to $417,321.
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Calgary is still in a seller’s market with the number of sales increasing 37% year over year, and on a year-to-date basis this is the hottest market Calgary has seen in over six years. Most home types saw sizeable month-over-month average selling prices gains, while new listings were up 14% compared to July. This is indicative of sellers wanting to capitalize on these favourable market conditions.
The Calgary Real Estate Board (CREB) reports:
- Market: Seller's Market
- Sales: 2,151 (up 37% year over year and down 7% month over month)
- New listings: 2,822 (up 10% year over year and down 14% month over month)
- Active listings: 6,053 (down 7% year over year and down 9% month over month)
- Sales-to-new-listings ratio: 76% (previous month was 70%)
- Average price for a detached home: $590,784 (up 7% year over year and up 9% month over month)
- Average price for a semi-detached home: $490,464 (down 1% year over year and up 14% month over month)
- Average price for a townhouse: $318,977 (up 4% year over year and up 6% month over month)
- Average price for a condo: $258,609 (up 3% year over year and up 2% month over month)
- Overall average price for a home: $488,043 (up 4% year over year and at parmonth over month)
Comments from CREB® Chief Economist Ann-Marie Lurie: “Sales have far exceeded expectations throughout most of the pandemic, driven mostly by demand for detached homes. At the same time, supply could not keep pace and conditions shifted to favour the seller, something that has not happened in over six years.”
Though the city is still in a seller’s market, we are finally seeing some balance to residential unit sales and pricing. The average residential selling price is up only 3% year over year and is down 1% month over month. Slight decreases in month-to-month activity could signal a balanced market is on the horizon.
The REALTORS® Association of Edmonton (RAE) reports:
- Market: Seller's Market
- Sales: 2,056 (up 10% year over year and down 7% month over month)
- New listings: 3,177 (up 13% year over year and down 6% month over month)
- Active listings: 7,689 (down 2% year over year and down 4% month over month)
- Sales-to-new-listings ratio: 65% (previous month was 64%)
- Average days on market: 42 (down 19% year over year and up 8% month over month)
- Average detached selling price: $460,963 (up 5% year over year and down 1% month over month)
- Average duplex selling price: $355,326 (up 4% year over year and down 1% month over month)
- Average condo selling price: $227,559 (down 1% year over year and down 5% month over month)
- Average residential selling price: $384,874 (up 3% year over year and down 1% month over month)
Comments from RAE Chair Tom Shearer: "The year-over-year residential unit sales in the GEA were higher than August of last year, while we have started to see slight decreases in the month-to-month activity. The market is starting to balance out after a very busy 18 months with pricing increasing a nominal amount year over year.”
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