Alberta Real Estate Market Update: July 2021
Alberta’s real estate market continued to favour sellers in July, though some typical seasonal cooling off is taking place. Average selling prices, number of homes sold and the volume of new listings coming onto the market saw year-over-year increases, while month over month there were declines, indicating a more typical summer market.
Though sales across the province dropped by 20% compared to June,1 July’s total of 7,378 was the strongest activity for the month in over 6 years. According to the Alberta Real Estate Association (AREA), “Over the past year, housing markets have been exceptionally strong despite the job loss and economic slowdown caused by COVID-19. Moving forward, we could start to see housing markets return to levels more traditional with longer term trends.”
Favourable conditions also drew Albertan homeowners to the market in higher numbers than is usual for June. Though new listings lagged June’s tally by 20% at 10,680, months of inventory increased from 2.99 to 3.66 months.
Average selling prices held steady in July. Across the province, the average selling price for all home types grew 7% year over year and decreased 1% month over month to $426,036.
Calgary experienced the hottest sales month in its history with 2,319 homes sold, making it the best July on record. The pace of new listings is starting to even out, even as supply is up above averages across the country. Experts expect more balanced conditions in the future.
The Calgary Real Estate Board (CREB) reports: 2
- Market: Seller's Market
- Sales: 2,319 (up 26% year over year and down 20% month over month)
- New listings: 3,296 (up 9% year over year and down 20% month over month)
- Active listings: 6,678 (up 1% year over year and down 3% month over month)
- Sales-to-new-listings ratio: 70% (previous month was 70%)
- Benchmark price for a detached home: $539,900 (up 11% year over year and up 1% month over month)
- Benchmark price for a semi-detached home: $428,400 (up 10% year over year and down 3% month over month)
- Benchmark price for a townhouse: $299,600 (up 11% year over year and up 0.1% month over month)
- Benchmark price for a condo: $254,100 (up 4% year over year and up 4% month over month)
- Overall benchmark price for a home: $460,100 (up 10% year over year and up 4% month over month)
Comments from CREB® Chief Economist Ann-Marie Lurie: “Over the past several months, we have seen housing market conditions trend toward more balanced conditions. This eased some of the upward pressure on prices, as prices are starting to stabilize following steep gains that occurred in the first half of the year.”
Residential sales in Edmonton we’re only slightly higher than last July, indicating a return to more balanced levels of activity. The market is still holding strong in favour of sellers, but pricing is starting to level out with less volatility.
The REALTORS® Association of Edmonton (RAE) reports: 3
- Market: Seller's Market
- Sales: 2,208 (up 2% year over year and down 19% month over month)
- New listings: 3,446 (up 9% year over year and up down 18% month over month)
- Active listings: 8,015 (down 5% year over year and down 0.1% month over month)
- Sales-to-new-listings ratio: 64% (previous month was 65%)
- Average days on market: 39(down 28% year over year and up 8% month over month)
- Average detached selling price: $466,091 (up 7% year over year and down 1% month over month)
- Average duplex selling price: $357,064 (up 8% year over year and down 3% month over month)
- Average condo selling price: $240,096 (up 7% year over year and down 1% month over month)
- Average residential selling price: $389,756 (up 5% year over year and down 2% month over month)
Comments from RAE Chair Tom Shearer: "The year-over-year residential unit sales were only slightly higher than July of last year, while we have started to see the monthly activity cool as we get later into the summer season. Pricing has also begun to balance – with nominal year-over-year increases and little change in month-over-month figures. We are still witnessing a strong market, with some balanced activity for July.”
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