Alberta Real Estate Market Update: September 2020
Despite concern over a second wave of COVID-19, home sales in Alberta are seeing major growth, revealing a resurgence in buyer demand since late summer. Strong sales are bringing Calgary closer to a balanced market for the first time in five years, while in Edmonton, an increase in sales is putting upward pressure on year-over-year prices. Inventory levels in both regions have dropped by more than 12% compared to the same time last year, and overall home prices are fairly consistent with those seen in August. While the pandemic is still having an impact on the economy, selling conditions have improved.
If you need to sell or buy a home, 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 purchase a home with one of our REALTORS®.
City of Calgary
Calgary is moving toward a more balanced market and saw the strongest September for home sales since 2014.
The Calgary Real Estate Board (CREB®) reports1 the City of Calgary’s residential sales jumped 25% from September of last year for a total of 1,702 homes sold. This growth in buyer demand has reduced inventory to the current 6,225 homes for sale – 12% lower than in September 2019 – and bumped month’s supply down from 4.1 months in August to 3.6 (meaning it would take 3.6 months to sell all available homes at the current rate of sale).
CREB® chief economist Ann-Marie Lurie observes, “[t]he recent rise in new listings, combined with low lending rates and softness in prices, has helped support some of the recent upward trend in sales.”
After three months of upward-trending prices, the average price for all homes in September is $467,625, for a marginal growth of 1% year over year and a 0.4% decrease month over month.2
The average price for a detached home in the City of Calgary is $547,693, up 1% year over year and down half a percent since August. The average price for a semi-detached home is $478,870, up 1.5% year over year and down 3% month over month. The average price for a town/row home is $328,990, up 2% year over year and 7% month over month.3
The Edmonton Census Metropolitan Area (Edmonton CMA) is enjoying improved selling conditions with decreasing inventory and growing sales.
The REALTORS® Association of Edmonton (RAE) reports4 that the Edmonton CMA saw a massive 36% increase in year-over-year residential sales, despite a slight decrease of 0.2% since August.
RAE Chair Jennifer Lucas points out that the main drivers of year-over-year growth are increased sales of single-family homes, condos and duplexes, and that, “while we’ve seen stable or decreasing month-over-month sales in all markets,” the trend “is typical for this time of year.”
Detached home sales are on par with August’s at 1,188, representing a stunning 43% increase over the same month last year. The average price is $440,020, which represents a growth of 5% over September 2019 and 0.1% over August 2020. Meanwhile, condo sale prices average $232,237 for a year-over-year increase of 7% and a month-over-month increase of 1%. Duplex prices average $341,519 for a decrease of just under 1% year over year and 0.6% month over month.
The average home price for all residential homes is $376,571, resulting in a growth of 7% compared to September 2019 and a 0.5% increase from August 2020. Meanwhile the inventory of available homes fell 15% year over year to 7,248.
If you need to sell or buy a home this fall, a local Purplebricks REALTOR® can help you navigate the market with safety and professional insight. Purplebricks supports Canadians by providing them with full-service real estate experiences that put thousands more in their pockets: our sellers save thousands in commission with our low fixed fee, and our buyers receive $2,000 in cash back* when they purchase a home with one of our REALTORS®. Call 1-877-888-3131 to learn more about starting your real estate journey with us.