Edmonton Housing Market Report (November 2021) / Guido Kamanzi - Edmonton Realtor
Sunday Jan 02nd, 2022
Edmonton housing market went up in November 2021
Edmonton is a quiet city and its real estate market is more balanced than most Canadian cities. I have lived in Edmonton since 2002 and have seen the ups and downs of the real estate market. When the housing crisis came from the USA and moved to Canada in 2008 we were not hurt by the crisis because our market was a strong market without many people owning a lot of houses. But the 2014 oil crisis was the one that slapped us because the Alberta economy is dominated by oil and you remember that the oil barrel went from $ 120 to $ 33. People lost jobs and moved out of the province and the real estate market suffered from that. I got to the point where I started thinking about moving out of Edmonton as well but decided to stay as Edmonton had become my home. Today we are in 2022 and the city is in good shape, everyone that I know is working, and owning a house and car, and the overall economy of Alberta is strong. There are also reports that some big tech companies in the United States are going to have their headquarters in Calgary and Edmonton.
Realtors were so busy this year more than any other year. We could not understand how this market emerged during this period of the pandemic. At the beginning of the year, people were asking me do I think houses will rise or fall. And I'm always careful to answer that question because you can mislead someone and our industry regulations ask us to be careful when answering that question because no one can speak about the future other than the ALMIGHTY GOD or nature itself. Would could predict in January 2021 that the spring market will go crazy that way? and we are talking about almost all the cities in Canada, for example, Gatineau. Ottawa etc... . I know we have economic planners or real estate planners whose jobs are to predict how the market will go in the next quarter etc...And appreciate all they do but sometimes those speculations take other directions. But it is still better to have them than not to have them.
Home sales outreached a new record for the month of November 2021 and the average selling price also reached a new all-time high. Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for November 2021 increased by 30.9% compared to November 2020 and decreased by 2.1% from October 2021. New
Residential listings grew 16.1% year-over-year from November 2020. However, new residential listings are down month-over-month, declining 18.9% from October 2021.
All together inventory in the GEA was down 10.2% from November of 2020 and went down 14.9% from October 2021. For November, single-family home unit sales are up 24.2% from November 2020 and down 1.2% from October 2021 at 1,112. Condo unit sales went up 32.5% from November 2020 and went down 9.3% from October 2021.
Duplex/rowhouse unit sales were up 61.8% year-over-year and up 8.1% month-over-month.
All residential average prices are at $384,319, a 2.0% increase from November 2020, and a 1.8% increase from October 2021. Single-family homes averaged $456,956, a 3.9% year-over-year increase and a 1.5% increase from October 2021.
The Condominiums sold for an average of $226,433, a 1.8% decrease year-over-year, and prices are up 0.4% compared to October 2021. Duplex prices increased 3.0% from November 2020, selling at $348,017, a 3.0% decrease from October 2021. The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $341,400,800, a 4.1% increase from November 2020, and down 1.4% from October 2021.
“The Edmonton market saw some strong activity in November, which is not normal for this time of year. We also saw an increase in new residential listings compared to November 2020,” says REALTORS® Association of Edmonton Chair Tom Shearer. “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.”Single-family homes averaged 42 days on the market, a seven-day decrease from November of last year. Condos averaged 61 days on the market, a two-day decrease year-over-year, while duplexes averaged 53 days on the market, a one-day decrease compared to November 2020. Overall, all residential listings averaged 49 days on the market, decreasing by five days year-over-year and increasing by two days compared to October 2021.
So, what do we see in our crystal ball for real estate next year? The Canadian Real Estate Association (CREA) says housing sales will moderate, but prices aren’t expected to ease any time soon. The association said in its 2022 forecast released on Wednesday that it expects tightening supply conditions to push housing costs even higher in 2022. “While price growth is not expected to be as extreme in 2022, many of the conditions that supported it right up until the end of 2021 will still be there on New Year’s Day,” the association said in a release.