Alberta Real Estate Market Update: May 2022
The 9,409 sales across Alberta in May were record highs for the month,1 despite sales decreasing 4% month over month. After a substantial boost in new listings in , new listings have continued to remain essentially on par both year over year and month over month in both April and May; in May, new listings were up 4% year over year and 1% month over month. Months of inventory increased from 2.03 months to 2.38 months of inventory, which is welcome news for buyers in this market. The increase in new listings helped increase active listings to 13% month over month, also welcome news for buyers.
Average selling prices increased 3% month over month and are still up year over year to the tune of 8%. In May, the average price for a home in Alberta was $477,009. The consistency in average selling price and tight inventory levels are testaments to the seller’s market Alberta is experiencing, though there are preliminary signs the later half of 2022 may see more balanced market conditions.
Sales activity slowed in May compared to April and the record highs of March. Despite this, sales were still up 3% year over year, and the market continues to favour sellers. New listings fell by 6% month over month, while active listings continued their upward trajectory, up 7% month over month. All product types, with the exception of condos, saw average selling prices fall compared to April, though are still up year over year.
The Calgary Real Estate Board (CREB) reports2 3:
- Market: Seller's Market
- Sales: 3,071 (up 3% year over year and down 10% month over month)
- New listings: 4,294 (down 6% year over year and down 6% month over month)
- Active listings: 5,200 (down 23% year over year and up 7% month over month)
- Sales-to-new-listings ratio: 72% (previous month was 74%)
- Average price for a detached home: $660,124 (up 11% year over year and down 1% month over month)
- Average price for a semi-detached home: $542,025 (up 8% year over year and down 4% month over month)
- Average price for a townhouse: $363,655 (up 11% year over year and down 1% month over month)
- Average price for a condo: $288,580 (at par year over year and up 6% month over month)
- Overall average price for a home: $520,013 (up 2% year over year and down 2% month over month)
Comments from CREB® Chief Economist Ann-Marie Lurie: "It's not a surprise to see sales ease from the exceptionally strong levels seen earlier in the year. Many buyers were eager to get into the market ahead of the rate gains that we are now seeing. While higher lending rates are weighing on sales activity, the market is still struggling with supply levels and rising prices which could also be contributing to slower sales, especially in the detached market. Nonetheless, if this shift continues, we could begin to see more balanced conditions in the market over the next several months, slowing the pace of price growth in the market."
The Edmonton market teetered between balanced market and buyer’s market conditions in May as sales and new listings decreased month over month by 2% each. Despite the 17% increase in active listings at month end, homes were selling two days faster compared to April. Demand still appears to be high in Edmonton, though average selling prices decreased by 2% month over month and are up 2% year over year.
- Market: Seller's Market
- Sales: 2,857 (up 4% year over year and down 2% month over month)
- New listings: 4,711 (up 13% year over year and up 2% month over month)
- Active listings: 7,546 (down 6% year over year and up 17% month over month)
- Sales-to-new-listings ratio: 61% (previous month was 62%)
- Average days on market: 29 (down 12% year over year and down 7% month over month)
- Average detached selling price: $492,037 (up 6% year over year and down 4% month over month)
- Average duplex selling price: $395,783 (up 11% year over year and down 3% month over month)
- Average condo selling price: $241,886 (down 1% year over year and up 1% month over month)
- Average residential selling price: $410,276 (up 2% year over year and down 2% month over month)
Comments from RAE Chair Paul Gravelle: “We’re starting to see a slow down of the real estate market in the Greater Edmonton Area as we head into the early days of summer. While we continue to see a lot of activity in the market, we’re not seeing as big of month-to-month changes for pricing, sales and days-on-market that we did earlier this year.”
If you need to sell or buy a home, an experienced 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.