Alberta Real Estate Market Update: December 2021
December home sales increased substantially year over year, contributing to a record year for Alberta. Inventory on the market decreased further month over month which drove the sales-to-new-listings (STNL) ratio up to 116%.
Looking at 2021, the STNL ratio was 70%, which is the highest it has been since 2006. Many record sales months demonstrate that demand has been high in the province all year, and December was no different. Homes sales increased 27% year over year and fell 21% month over month. However, the month over month decrease is typical as the holiday season approaches. In total, Alberta sales reached a record high of 84,481 units for 2021. To put that in context, in the last five years, sales have averaged around 55,000 units per year.
Record-high sales were not met with record-high listings. Despite new listings being at par year over year, overall inventory is down 23%, resulting in months of inventory coming in at 2.93 months. This means that it would take just under three months to sell all homes currently on the market, down a whopping 39% compared to the same time last year.1
Everywhere in the province is affected by strong sales activity and low levels of supply. This has created seller’s market conditions in all areas of the province.
Like the previous month, average selling prices did not spike or drop considerably in December. Across the province, the average selling price for all home types grew 7% year over year and fell by 2% month over month, now sitting at $420,842.
In a seller’s market like Alberta's, the guidance of experienced REALTORS® is an invaluable asset for both buyers and sellers. Speak to a local FairSquare Group Realty agent to learn about the latest trends in your region and discover how we can help you reach your real estate goals.
December sales were up 45% year over year, which capped a record year for the Calgary region. With new and active listings shrinking 38% and 34%, respectively, from November, and sales only decreasing 18% month over month, the sales-to-new-listings (STNL) ratio increased to a whopping 141% in December, an increase of more than 30 percentage points. Demand for housing is high.
The Calgary Real Estate Board (CREB) reports2 3:
- Market: Seller's Market
- Sales: 1,737 (up 45% year over year and down 18% month over month)
- New listings: 1,230 (up 5% year over year and down 38% month over month)
- Active listings: 2,608 (down 29% year over year and down 34% month over month)
- Sales-to-new-listings ratio: 141% (previous month was 106%)
- Average price for a detached home: $587,413 (up 10% year over year and at par month over month)
- Average price for a semi-detached home: $496,114 (up 10% year over year and down 1% month over month)
- Average price for a townhouse: $317,282 (up 7% year over year and down 4% month over month)
- Average price for a condo: $261,785 (up 7% year over year and down 8% month over month)
- Overall average price for a home: $477,977 (up 7% year over year and down 3% month over month)
Comments from CREB® Chief Economist Ann-Marie Lurie: “Concerns over inflation and rising lending rates likely created more urgency with buyers over the past few months. However, as is the case in many other cities, the supply has not kept pace with the demand causing strong price growth.”
Homes sold in Edmonton increased 20% year over year in December, marking the end to an extremely active real estate market in 2021. The sales-to-new-listings (STNL) ratio increased slightly from 86% to 93% in December, which means more listings were sold than what was replaced with new listings. Despite inventory decreasing month over month, average selling prices remained essentially at par compared to November.
The REALTORS® Association of Edmonton (RAE) reports4:
- Market: Seller's Market
- Sales: 1,319 (up 20% year over year and down 28% month over month)
- New listings: 1,411 (up 10% year over year and down 34% month over month)
- Active listings: 4,495 (down 14% year over year and down 23% month over month)
- Sales-to-new-listings ratio: 93% (previous month was 86%)
- Average days on market: 52 (down 10% year over year and up 6% month over month)
- Average detached selling price: $462,110 (up 8% year over year and up 1% month over month)
- Average duplex selling price: $362,906 (up 10% year over year and up 4% month over month)
- Average condo selling price: $217,065 (at par year over year and down 4% month over month)
- Average residential selling price: $381,868 (up 5% year over year and down 1% month over month)
Comments from RAE Chair Tom Shearer: “2021 was an incredible year for the Edmonton real estate market, including a record-breaking month in November. While we saw some substantial changes in the month-to-month activity, the year-over-year stats for residential unit sales and listings in the GEA were significantly higher than December of last year.”
If you need to sell or buy a home, a local FairSquare Group Realty agent can help you navigate the market safely and with professional insight. FairSquare Group Realty supports Canadians by providing exceptional real estate experiences with incredible rewards: sellers save thousands in commission and buyers receive $2,000 cash back* when they purchase a home with one of our REALTORS®. Call 1-877-888-3131 to learn more.