Alberta’s resale housing market saw a jump in sales in February compared to February 2019, according to figures released last week by the Alberta Real Estate Association (AREA).
Sales reached 3,561 homes last month, a year-over-year increase of 11 percent, but still in line with activity recorded over the last five years, says Ann-Marie Lurie, AREA chief economist and chief economist of the Calgary Real Estate Board.
“While any improvement in sales is welcome news for our market, the gains need to be put in perspective,” says Lurie. “Last February, sales were among the lowest levels recorded since the late ’90s. This, combined with the extra day in February, contributed to the double-digit gain.”
Also on the rise in February were new listings, preventing any significant changes in both inventory levels and average prices compared to last year, says Lurie.
“While the province continues to face several economic challenges, housing market improvements in the larger cities are generally supporting modest reductions in supply relative to demand, which is starting to generate more stability in prices,” she says.
Here are Lurie’s comments about Alberta’s two largest markets.
Calgary Region
“Following weak activity last year, year-over-year sales growth neared 20 percent. The strong growth helped offset the gains in new listings, ensuring further reductions in inventory levels compared to last year.
“Reductions in supply and improvements in sales helped reduce the oversupply in the market, easing the downward pressure on prices. Nonetheless, prices continue to remain just below last year’s levels.”
Edmonton Region
“Following a slow start to the year, sales activity improved by eight percent in February compared to February last year. The gains in monthly sales was also met with a gain in new listings, but the new listings growth was not enough to derail the trends of year-over-year reductions in inventory that have occurred for 11 consecutive months.
“The reductions in inventory and the improvements in sales are helping reduce the amount of oversupply in the market. While prices have remained relatively flat, year-to-date price gains were likely driven by shifts in distribution with more sales occurring in the highest price ranges.”
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