Alberta Real Estate Market Update: May 2021
Alberta’s real estate market continues to favour sellers as prices rise!
Though sales across the province ebbed by 4% compared to the highs of April, May’s 9,331 transactions set a new record for the month. According to the Alberta Real Estate Association (AREA), this is the result of several years’ worth of pent-up buyer demand and ultra-low interest rates making homeownership a more attractive option.
Favourable conditions also drew Albertan home owners to the market in higher numbers than is usual for May. Though new listings lagged April’s tally by 3% at 13,881, overall inventory is up 7% at 26,785 active listings. According to AREA, the upward trend in supply “should help support more balanced conditions as we move through the second half of 2021.”
Despite increased inventory, prices remained strong in May. Across the province, the average selling price for all home types grew 22% year over year and just over three-quarters of a per cent month over month to $442,808.
The Calgary market was hot in May! As strong buyer demand continues, record-breaking sales are helping to keep the city in a seller’s market.
The Calgary Real Estate Board (CREB®) reports 2,989 residential sales in the city, a new record for the month of May. Compared to May 2020 – when the first wave of the pandemic greatly reduced activity in the real estate market – sales were up 177%, while compared to record-breaking numbers in April 2021, sales were down 7%.
The number of new listings coming onto the market was also well above last year’s number but below last month’s. At 4,562, new listings were up 89% year over year and down 2% month over month. But with sales decreasing at a faster rate, the sales-to-new-listings ratio (which indicates how many homes were sold per 100 new listings) eased down from 69% in April to 66%, while active listings (i.e., available homes) rose 12% month over month to 6,782. Nevertheless, the average days on market fell by one day from April to 32.
“The recent gains in prices have encouraged more homeowners to list their homes and take advantage of the current market situation," notes CREB® Chief Economist Ann-Marie Lurie. “However, the inventory gains are still not enough to offset the demand growth and the market continues to favour the seller.”
In May, the average selling price for detached homes rose 16% year over year and under a quarter-per cent month over month to $595,881. For semi-detached homes, the average was up 18% year over year and down 6% month over month at $505,043. For rowhouses, it advanced 15% year over year and slid back 1% month over month to $327,091. For condos, it grew 22% and 9% over the same periods to $289,538.
For all home types, the average selling price came in at $510,908 – up 16% from last May, with a larger-than-usual share of homes sold in the $600,000+ price range (26% of sales in May 2021 versus 16% a year ago). Compared to last month, prices went up by a little under half a per cent.
May was another strong month in the Edmonton real estate market! Though sales ebbed slightly from the highs of April, prices continued to climb.
The REALTORS® Association of Edmonton (RAE) reports 2,741 residential sales in the Greater Edmonton Area (GEA) in May. This was an increase of 137% compared to May 2020, when the first wave of the pandemic greatly reduced activity in the real estate market. Compared to April 2021, sales were down 4%.
The number of new listings coming onto the market was also well above last year’s number but below last month’s. At 4,251, new listings were up 46% from last May and down 2% from April. With sales and new listings decreasing at the same rate, the sales-to-new-listings ratio (which indicates how many homes were sold per 100 new listings) shifted marginally from 65% in April to 64%. Nevertheless, the pace of the market has picked up, with the average days on market falling from 37 days to 33 over the same period.
“There have […] been more sales of single-family homes, condos and duplexes compared to May of last year, while month-over-month activity has started to cool off compared to April,” notes REA Chair Tom Shearer. “While we need to keep in mind the drastic difference between 2020 and 2021, we are witnessing a strong market heading into summer.”
In May, the average selling price for single-family detached homes rose 13% year over year and 2% month over month to $465,551. For duplexes and rowhouses, it rose 10% year over year and 3% month over month to $358,195. For condos, the average price was up 18% year over year and 6% month over month at $241,885.
For all residential homes, the average selling price saw an increase of 13% year over year and 3% month over month to $401,390.
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