Alberta Real Estate Market Update: June 2021
Alberta’s real estate market continued to favour sellers in June, 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 double-digit increases, while month over month there were decreases upwards of 5%.
Though sales across the province ebbed by 2% compared to May,1 June’s 9,192 transactions set a new record for the month.2 According to the Alberta Real Estate Association (AREA), “low lending rates and pent-up demand stemming from years of low activity are driving resale demand growth across most regions of the province.”
Favourable conditions also drew Albertan home owners to the market in higher numbers than is usual for June. Though new listings lagged May’s tally by 5% at 13,260, months of inventory increased from 2.87 to 2.99 months. Despite this, this is the lowest amount of inventory Alberta has seen since June 2006.
Average selling prices held steady in June. Across the province, the average selling price for all home types grew 13% year over year and decreased 2% month over month to $432,138.
Record high sales for the month of June kept the Calgary market hot in June. New listings came in at almost record-breaking numbers for the month, though buyers were eager to scoop up new listings, keeping the months of inventory at just 2.4 months. As supply trends upward, the pace of the market is slowing down causing average selling prices to decrease month over month. This reflects a more typical summer market and likely an indication that Calgary is moving towards more balanced conditions.
The Calgary Real Estate Board (CREB) reports3 4:
- Market: Seller's Market
- Sales: 2,915 (up 65% year over year and down 2% month over month)
- New listings: 4,135 (up 24% year over year and down 9% month over month)
- Active listings: 6,918 (up 7% year over year and up 2% month over month)
- Sales-to-new-listings ratio: 70% (previous month was 66%)
- Average detached selling price: $537,200 (up 13% year over year and down 10% month over month)
- Average semi-detached selling price: $427,000 (up 11% year over year and down 15% month over month)
- Average townhouse selling price: $299,300 (up 9% year over year and down 8% month over month)
- Average condo selling price: $253,000 (up 5% year over year and down 13% month over month)
- Average residential selling price: $458,300 (up 11% year over year and down 10% month over month)
Comments from CREB® Chief Economist Ann-Marie Lurie: "Through the early spring market, many buyers did not have a lot of choice, but the recent improvements in supply are providing more options for those purchasers and supporting the strong sales we continue to see in June. At the same time, gains in inventory are taking some pressure off the market as it starts to trend towards more balanced conditions.”
Average selling prices and sales remained steady in June, while new listings got a small boost resulting in active listings increasing month-over-month. Though sales of all property types decreased compared to May, all experienced double-digit year-over-year growth and are selling in about one months time versus two months last year, showing that the seller’s market in Edmonton is still there, but likely cooling down for the summer months.
The REALTORS® Association of Edmonton (RAE) reports5:
- Market: Seller's Market
- Sales: 2,729 (up 33% year over year and down 0.3% month over month)
- New listings: 4,219 (up 20% year over year and up 1% month over month)
- Active listings: 8,023 (down 1% year over year and up 6% month over month)
- Sales-to-new-listings ratio: 65% (previous month was 64%)
- Average days on market: 36 (down 39% year over year and up 9% month over month)
- Average detached selling price: $472,637 (up 12% year over year and up 2% month over month)
- Average duplex selling price: $356,085 (up 8% year over year and down 1% month over month)
- Average condo selling price: $241,808 (up 10% year over year and down 0.03% month over month)
- Average residential selling price: $398,229 (up 11% year over year and down 1% month over month)
Comments from RAE Chair Tom Shearer: "The Edmonton market in June saw an increase in year-over-year residential unit sales. There have also been more sales of single-family homes, condos and duplexes compared to June of last year, while month-over-month activity has started to cool off in some markets compared to May.”
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