Alberta Real Estate Market Update: November 2020
Alberta’s major real estate markets continue to enjoy improved selling conditions, despite seasonal slowdowns and ongoing pandemic restrictions.
Both Calgary and Edmonton are seeing strong year-over-year sales numbers and fewer new listings being added to the market. With a reduction in overall inventory levels, home buyers still wanting to take advantage of low borrowing rates have fewer options to pick from – particularly in the detached home category. With low supply and high demand, prices in both regions have been given a boost.
Calgary is seeing more balanced market conditions this month.
The Calgary Real Estate Board (CREB®) reports1 that the city’s total residential sales totalled 1,437, for an increase of 25% compared to November 2019 and a decrease of 19% from October of this year.2 New listings are down 7% year over year and 30% month over month at 1,724 – the lowest level since 2001, which is helping reduce the oversupply of listings that has caused an imbalance in the market for the last five years.
According to CREB® Chief Economist Ann-Marie Lurie, “it is important to note that the shift to more balanced conditions has been mostly driven by the reduction of supply.” Strong sales and fewer new listings brought the sales-to-new-listings ratio to a healthier 83%, well up from last November’s 62%.
With tighter market conditions, the average price for all residential homes rose 3% year over year to $455,584, despite a month-over-month decrease of 4%.
However, trends differ considerably across home types and price ranges. In the detached market, sales rose 26% over the same month last year for a total of 883 homes sold and an average price of $537,746 (up 3% year over year and down 3% month over month). Increased demand for homes priced below $500,000 has depleted inventory to the extent that the market currently favours sellers, while a greater supply of homes priced above $500,000 has led to a market favouring buyers.
Sales in the semi-detached market saw the most gains this month with a 50% year-over-year increase in sales and an average price of $464,048 – up 11% from last November and 1% from October, making it the only category to see a month-over-month price increase.
Sales of rowhouses grew by 24% year over year, but a larger inventory in this category has not supported upward price growth. In fact, this month’s average price of $312,655 is down 4% from November 2019 and down 2% from October 2020.
Similarly, apartment condo sales posted moderate year-over-year sales growth and a decreased average price owing to a larger inventory: sales were up 12% from last November, but the average price of $235,030 came in 7% lower year over year and 3% lower month over month.
The Edmonton Census Metropolitan Area (Edmonton CMA) continues to see strong sales numbers supporting year-over-year price gains.
New listings for all home types numbered 1,858, up 3% year over year and down a substantial 32% from last month. With fewer listings hitting the market, the sales-to-new-listings ratio is at 75%, up from 61% in November 2019 and 62% in October of this year. Overall inventory fell 15% year over year and 11% month over month to 6,205 available listings.
Tighter markets have contributed to faster sales this November: the average days on market is 54, well below last November’s 69 days and just four days longer than in October.
“The Edmonton market has seen an increase in year-over-year unit sales, compared to a decrease in month-to-month sales,” notes RAE Chair Jennifer Lucas. However, she suggests that this easing of market activity is not worrisome: “There have also been more sales of single-family homes, condos and duplexes compared to November of last year, while we’ve seen decreasing month over month sales in all markets, which is typical for this time of year. We’re pleased to see year-over-year increases in pricing across all markets.”
In November, detached homes sold in an average of 49 days for an average price of $439,103, up 4% year over year and down a modest 1% month over month. Condos averaged 63 days on market at $230,688, up 1% year over year and down less than half a per cent month over month. Duplexes averaged 54 days on market at $337,784, up 5% year over year and up just under half a per cent compared to October’s average price. The average price for all residential homes is $376,636, rising 7% compared to November 2019 and falling 1% from last month.
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