Alberta Real Estate Market Update: October 2020
Alberta’s major real estate markets continue to enjoy improved selling conditions, despite the colder weather moving in and the ongoing pandemic.
As the province continues to play catch-up after the market downturn this spring, year-over-year upticks in new listings haven’t kept pace with buyer demand, leaving inventory levels 12% lower than last October in both Calgary and Edmonton. With fewer options for home buyers – particularly in the detached home category – prices in both regions have been given a boost, bringing Calgary closer to balanced market conditions than it has been in recent years. All told, it’s been a good month for homeowners looking to sell.
Calgary continues to see more balanced market conditions this month.
The Calgary Real Estate Board (CREB®) reports1 that the city’s total residential sales rose 23% from October of last year, for a total of 1,764 homes sold. Though new listings are also up 4% year over year for a total of 2,461, the high rate of sales means inventory levels are dropping and prices are moving upward.
“Over the past several years, higher lending rates and the stress test pushed many out of the detached housing market,” observes CREB® chief economist Ann-Marie Lurie. “However, recent declines in rates, combined with prices that are lower than several years ago, have brought back some of that demand.”
Still, positive gains are far from consistent across all home types and price ranges. The detached market saw the most improvement this month, with sales rising 35% year over year for a total of 1,139 homes sold. The largest growth in detached home sales occurred in the $600,000+ price range, nudging inventory levels below three months’ supply (meaning it would take just under three months to sell all inventory in that price range at the current rate of sales), while high demand for homes priced under $500,000 has reduced inventory to less than two months. The benchmark price for a detached home is $489,800, up 2% year over year, though that figure is consistent with the year-to-date price and below the highs recorded in previous years.
Sales in the semi-detached market are also trending upward for a year-over-year growth of 21%. Despite the increase in sales and a 1% decrease in new listings, the benchmark price has fallen by 1% year over year to $394,700. Similarly, sales of row homes improved by 9% over last October, though the benchmark price decreased by 6% over the same period to $274,400. The apartment condominium category was the only one to experience year-over-year decreases in both sales and price, with 6% fewer sales and the benchmark price of $248,600 coming in 1% below last October.
The average price for all home types in the City of Calgary is $474,903, representing a growth of 5% year over year. The overall inventory is 5,833 active listings (12% below the levels seen last October), leaving the city with a little over three months of supply.
The Edmonton Census Metropolitan Area (Edmonton CMA) continues to see strong sales numbers supporting steady price gains.
The REALTORS® Association of Edmonton (RAE) reports2 that the Edmonton CMA saw a 26% increase in year-over-year residential sales, despite a slight decrease of 0.2% since September.
As a result of increased buyer demand, inventory levels are falling: at the close of October, there were 6,977 active listings representing a year-over-year decrease of 12%, despite new residential listings increasing 15% year over year to 2,715. The average days on market fell from 65 days in October 2019 to 50 days.
RAE Chair Jennifer Lucas notes, “There have […] been more sales of single-family homes, condos and duplexes compared to October of last year, while we’ve seen stable or decreasing month over month sales in all markets, which is typical for this time of year.”
Detached home sales numbered 1,118 for the month – an impressive 38% increase over October 2019 and a decrease of 6% from September – with an average price of $442,854 representing a year-over-year increase of 5% and a month-over-month decrease of 1%. Condo sale prices averaged $231,608 for a year-over-year increase of 2% and a month-over-month decrease of 1%. Duplex prices averaged $336,314, a year-over-year increase of 2% and a month-over-month decrease of 1%. The average price for all residential homes is $382,060, rising 8% compared to October 2019 and 2% compared to September 2020.
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