Alberta Real Estate Market Update: August 2020
Six months past the first pandemic lockdowns, Alberta’s major real estate markets saw average prices for detached homes edging slightly upward as overall sales activity leveled off. Amidst concern over a second wave of COVID-19 this fall, demand for detached homes may be strengthened by buyers’ desire for more space, though this housing type has traditionally seen stronger numbers than semi-detached houses, townhouses, and condos. New listings decreased year over year in both Calgary and Edmonton, which may help keep prices stable as we head toward fall.
If you need to sell or buy a home during the pandemic, rest assured a Purplebricks REALTOR® can help you navigate the market with safety and professional insight. We saved our home sellers an average of $13,500 in commission last year†, and we give buyers $2,000 cash back* when they use a Purplebricks REALTOR® to buy their home!
Edmonton Census Metropolitan Area
Edmonton Census Metropolitan Area’s (Edmonton CMA) average home price is on a slow-but-steady rise since April.
The REALTORS® Association of Edmonton (RAE) reports1 that the Edmonton CMA saw a 20% year-over-year increase in residential sales, despite a 13% month-over-month decrease. Nevertheless, the average home price rose to $374,409, a 2% increase from August 2019 and a 1% increase from July 2020.
RAE Chair Jennifer Lucas points out that the increases are mostly driven by the single-family homes market, stating that there have been “more sales of single-family homes compared to August of last year, while we’ve seen less sales in the condo and duplex market.” Moreover, “[s]ingle family home pricing increased 1.01%, duplexes are down 3.48%, and condos are down 2.23% year-over-year.”
The average price of single-family detached home was $439,000 in August, while condos landed at $229,000 and duplexes/town houses came in at $342,0002. New listings of all residential types are down 4% year over year, spending an average of 52 days on market – a 16% drop from August 2019.
Calgary’s average selling price is still climbing despite increased inventory.
The Calgary Real Estate Board (CREB®) reports3 the City of Calgary’s residential sales remained consistent with numbers for the last five years, with 1,573 homes sold in August – a decrease of only 0.4% year-over-year4.
CREB® chief economist Ann-Marie Lurie observes, “[r]ecent national reports have shown a bounce back to new record levels over the past several months. Calgary has seen improvements over the lows recorded during the lockdowns but is far from record levels.” This, she points out, has a lot to do with disproportionate unemployment in the city due to COVID-19: “There have been more than 100,000 jobs lost since last year and Calgary’s unemployment rate sits at 15 per cent. This is well above the national average of 11 per cent.”
Nevertheless, the improvements she mentions can be seen in the numbers. The average selling price for a home in Calgary increased slightly to $469,612 this August, a year-over-year increase of 4% and a month-over-month increase of 0.7% - this in spite of the fact that inventory rose from 3.6 months’ supply in July to 4.1 in August.
If you need to sell your home or buy a home during the outbreak, rest assured that a Purplebricks REALTOR® can help you navigate the market.
Purplebricks is here to support Canadians by providing them with a full-service real estate experience while saving them thousands in commission when selling their home. As for homebuyers, we share the commission by giving buyers $2,000 in cash back* when they buy a home with us. Call 1-877-888-3131 to learn more.
Randall Weese is the Director of Compliance and Brokerage Services at Purplebricks, where he is also the licensed Broker of Record for Ontario, Broker for Alberta, and Associate Broker for Manitoba. A REALTOR® with 14 years’ experience in Ontario, Randall has worked in a variety of business models within the real estate industry. He has been a REALTOR® at one of the largest brokerages in Canada, managed a boutique brokerage, and founded and operated his own brokerage in the Greater Toronto Area. Throughout his career, he has acted as a listing agent on thousands of homes across the country.