Alberta Real Estate Market Update: October 2021
Sales were driven to record highs in October across Alberta. There were many consumers in the market looking for detached properties, and high demand continues to be driven by low lending rates. The sales-to-new-listings (STNL) ratio increased by 10%, now sitting at 80%, placing market conditions firmly in the hands of the sellers.
Like September 2021,1 new listings stayed consistent year-over-year but did experience a 13% decline from last month. Looking at sales activity, home sales across the province increased 15% year over year and dropped 1% month over month. Despite downward pressure on inventory and rising prices, October’s total of 6,494 homes sold is still a record for Alberta.
With inventories decreasing and record sales numbers, the months of supply remained just over three months. Again, this is an unusual level for this time of year. It’s becoming even more evident that the number of new listings has not been at the level needed to impact supply.
Average selling prices did not spike or drop considerable amounts in October. Across the province, the average selling price for all home types grew 4% year over year and increased by 3% month over month, now sitting at $426,926.
Calgary’s 2,186 sales in October set a record high for the month and is 35% above long-term averages. The sales-to-new-listings (STNL) ratio increased dramatically by 13 percentage points, driving the market further into the hands of the sellers. Tighter market conditions pushed the average selling price up by 2% both month over month and year over year. Notably, the average condo apartment price increased a substantial 19% compared to October 2020, showing increased desire in this product type.
The Calgary Real Estate Board (CREB) reports2 3 :
- Market: Seller's Market
- Sales: 2,186 (up 24% year over year and up 1% month over month)
- New listings: 2,500 (up 2% year over year and down 14% month over month)
- Active listings: 4,870 (down 16% year over year and down 13% month over month)
- Sales-to-new-listings ratio: 87% (previous month was 74%)
- Average price for a detached home: $571,258 (up 3% year over year and down 2% month over month)
- Average price for a semi-detached home: $484,213 (up 5% year over year and up 4% month over month)
- Average price for a townhouse: $326,783 (up 3% year over year and up 3% month over month)
- Average price for a condo: $288,118 (up 19% year over year and up 12% month over month)
- Overall average price for a home: $485,482 (up 2% year over year and up 2% month over month)
Comments from CREB® Chief Economist Ann-Marie Lurie: "Moving into the fourth quarter, the pace of housing demand continues to exceed expectations in the city. Much of the persistent strength is likely related to improving confidence in future economic prospects, as well as a sense of urgency among consumers to take advantage of the low-lending-rate environment.”
Normalization is the key word when it comes to the Edmonton real estate market, as the market is trending towards more balanced conditions heading into the winter months. Nevertheless, the market did tighten due to sales outpacing new listings month over month. This is demonstrated by the sales-to-new-listings (STNL) ratio which increased by nine percentage points into the hands of the sellers, now sitting at 70%.
The REALTORS® Association of Edmonton (RAE) reports4 :
- Market: Seller's Market
- Sales: 1,866 (up 12% year over year and down 1% month over month)
- New listings: 2,676 (at par year over year and down 6% month over month)
- Active listings: 6,821 (down 6% year over year and down 4% month over month)
- Sales-to-new-listings ratio: 70% (previous month was 61%)
- Average days on market: 47 (down 6% year over year and up 7% month over month)
- Average detached selling price: $450,306 (up 2% year over year and down 1% month over month)
- Average duplex selling price: $361,827 (up 8% year over year and up 7% month over month)
- Average condo selling price: $225,449 (down 3% year over year and up 1% month over month)
- Average residential selling price: $377,848 (down 1% year over year and at par month over month)
Comments from RAE Chair Tom Shearer: "The Edmonton market in October saw only a nominal increase in new residential listings as compared to October 2020. The year-over-year residential unit sales in the GEA were higher than October of last year, while we have continued to see small decreases in the month-to-month activity. The market continues to see a normalization as we head into the winter months.”
Need to sell or buy a home? FairSquare Group Realty can help.
We’re the real estate brokerage that offers a smart, modern choice for Canadians. With thousands in commission savings for sellers, $2,000 cash back* for buyers, and experienced professional support every step of the way, it’s the new way home. Yours. Call 1-855-999-9740 to learn more.