Alberta Real Estate Market Update: November 2021
Following a record month in October, November sales almost reached new highs again in Alberta. Activity in regions like Calgary and Edmonton were a whopping 50% higher than long-term trends. Like many other regions in Canada, supply shortages are starting to affect Alberta as well. With levels of availability at their lowest we’ve seen in over a decade, the sales-to-new-listings (STNL) ratio increased to 94% from 80% last month. Though new listings and sales both decreased month over month, new listings saw a more dramatic decrease, which is why the STNL ratio increased substantially.
New listings increased 11% year over year and experienced a 20% decline month over month, which is after October saw a decrease of 14% in new listings.1 Switching over to sales activity, home sales across the province increased a substantial 32% year over year and dropped 6% month over month. Despite downward pressure on inventory and rising prices as inventory levels decrease, November’s total of 6,114 homes sold is just shy of a record month for Alberta.1
Large cities in the province are affected by strong sales activity and low levels of supply. This has created seller’s market conditions in some areas of the province, which is driving prices steadily upwards.
Average selling prices did not spike or drop considerably in November. Across the province, the average selling price for all home types grew 6% year over year and increased by 1% month over month, now sitting at $429,543.
In a seller’s market like Alberta’s, the guidance of experienced REALTORS® is an invaluable asset for both buyers and sellers. Speak to a local FairSquare Group Realty Agent to learn about the latest trends in your region and discover how we can help you reach your real estate goals.
There is high demand for all property types in the Calgary region, driving the number of sales to just under the record for November set in 2005. The sales-to-new-listings (STNL) ratio tightened past 100% as active and new listings fell drastically month over month. Slower sales are typical for this time of year, but sales have remained relatively consistent since August which is keeping average selling prices elevated.
The Calgary Real Estate Board (CREB) reports 2 3:
- Market: Seller's Market
- Sales: 2,110 (up 47% year over year and down 3% month over month)
- New listings: 1,989 (up 15% year over year and down 20% month over month)
- Active listings: 3,922 (down 22% year over year and down 19% month over month)
- Sales-to-new-listings ratio: 106% (previous month was 87%)
- Average price for a detached home: $585,922 (up 9% year over year and up 3% month over month)
- Average price for a semi-detached home: $499,599 (up 7% year over year and up 3% month over month)
- Average price for a townhouse: $330,270 (up 6% year over year and up 1% month over month)
- Average price for a condo: $285,713 (up 21% year over year and down 1% month over month)
- Overall average price for a home: $491,160 (up 8% year over year and up 1% month over month)
Comments from CREB® Chief Economist Ann-Marie Lurie: “Lending rates are expected to increase next year, which has created a sense of urgency among purchasers who want to get into the housing market before rates rise. At the same time, supply levels have struggled to keep pace, causing tight conditions and additional price gains.”
The sales-to-new-listings (STNL) ratio tightened to 86% in the Edmonton region, as new listings could not keep up with sales. Increased year-over-year sales activity was abundant, something that is unusual for the winter months and far outpacing November 2020. Average selling prices remained consistent year over year and month over month. Edmonton continues to be in a seller’s market.
The REALTORS® Association of Edmonton (RAE) reports 4:
- Market: Seller's Market
- Sales: 1,823 (up 31% year over year and down 2% month over month)
- New listings: 2,131 (up 16% year over year and down 19% month over month)
- Active listings: 5,808 (down 10% year over year and down 14% month over month)
- Sales-to-new-listings ratio: 86% (previous month was 70%)
- Average days on market: 49 (down 9% year over year and up 4% month over month)
- Average detached selling price: $456,956 (up 4% year over year and up 2% month over month)
- Average duplex selling price: $348,017 (up 3% year over year and down 4% month over month)
- Average condo selling price: $226,433 (down 2% year over year and at par month over month)
- Average residential selling price: $384,319 (up 2% year over year and up 2% month over month)
Comments from RAE Chair Tom Shearer: “The Edmonton market saw some strong activity in November, which is unusual for this time of year. We also saw an increase in new residential listings compared to November 2020. The year-over-year residential unit sales in the GEA were also significantly higher than November of last year, while we continue to see incremental decreases in month-to-month activity. The market continues to see activity heading into the winter months – a positive sign as we head into a new year.”
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