The sales in October in Alberta had a jump of 22.1% over October 2019 with a total of 5,696 sales. This combined with the listing inventory dropping by 16.3% to 24,867 listings across the Province has helped keep the markets balanced with 4.37 months of supply. The recent sales increase can be attributed to lowering inventory, low interest rates, a decline in household spending and increased savings.
All of the larger markets showed marked improvements year over year with the exception of Grande Prairie and Fort McMurray which both experienced slower months in sales. That being said, even with the uptick in sales over recent months, it hasn't been enough to exceed sales of 2019 except in the case of Lethbridge. The year to date adjustment in sales in the larger markets compared to last year during the same time frame are as follows:
|City||October Y/Y%||Year to date %|
There are many factors that will determine how long the increased sales activity will last but some highlights from the month are:
- The unemployment rate which has now dropped to 10.7% in Alberta, down from 11.7% in September.
- The Oil and Gas sector has had oil production creep back to within 7% of production done in 2019 ytd. The Natural Gas price has also jumped 125% compared to October 2019 but is still down from pre pandemic levels.
- Grain Deliveries are up 96% yr/yr which puts us 2nd in the Nation.
- Soft wood is up 4.7% yr/yr.
When looking at the sales numbers across Alberta, we are incredibly proud of all of the CIR REALTORS® who have gone above and beyond for their clients this year as CIR's sales volume was up 47.2% in October, and 24.3% ahead year to date compared to last year. It remains to be critical to keep a positive outlook, while educating our clients with factual information to help them make the best decisions for their situation.
Some quick numbers from the areas that our offices serve:
After a brief pull back in showing and sales activity in August, the Real Estate Markets picked right back up in September with sales across the Province trending above the ten year average.
- CIR's overall showing activity has begun to slow down coming into the Winter months, with most of the showings still occuring in the mid priced markets. While the sales across the Province were up 22.1% this October compared to last, CIR's sales were up over 47%! We continue to greatly outperform the markets month after month.
- Airdrie's market activity in October was the second busiest it has been in the past ten years, second only to the craziness of 2014! There were 143 sales which is 50.5% higher year over year, and listing inventory continues to drop to 323 listings which is 29.2% below last October. This has led to 2.26 months of supply which is getting very close to sellers market territory. The sales activity in the $300,000 to $999,000 range has greatly outperformed the sales of last year.
- The sales in Brooks rose 54.5% year over year to 17 sales in October. This has jumped the ten year average of 12 deals for the month which has continued to help strengthen the market. That combined with a lower amount of inventory on the market has helped lower the months of supply to 4.59 months, and lowered the average days on market to 81. The biggest improvements have been in the $200,000 to $499,999 price ranges.
- Calgary sales had strong gains through this October compared to last with a 22.7% increase to 1,764 sales year over year. The sales were stronger in all price ranges this year which has helped continue to lower the months of inventory to 3.31 months. With less inventory coming onto the market, we are seeing the days on market drop to 53 days on average. With the balancing market, it has helped rise the benchmark price to $422,600.
- Canmore has had the busiest October in over a decade, with sales rocketing 61.7% higher than last October! With 76 sales, and the months of supply at 2.75 months it remains to be a very competitive market with steady inventory coming onto the market.
- Cochrane's market continues to outperform the 10 year average for total volume of sales, with sales in October exceeding those of the past decade during the same month! WIth the sales remaining strong month over month, and the listing inventory continuing to drop, these conditions will support price increases in the market. We are starting to see that take effect as the total residential benchmark price has risen to $415,6000 which is 2.3% higher than the start of the year.
- Crowsnest Pass has out performed the past decade for sales in October. WIth sales rising to 18 in the month, it is 28.6% higher than last October. This has helped maintain the balanced market conditions in the area which we anticipate to continue through the Winter months.
- Sales in Lethbridge continue to rise with results 34.6% higher than October of last year! With 175 sales in the month, and 21% lower inventory, the months of supply has dropped to 3.34 months helping keep the balanced sales conditions.The single family, detached homes are carrying the bulk of the market and seeing the greatest gains in value.
- The Real Estate market in Okotoks continues to outperform the ten year average for sales, seeing a 40.9% increase in sales this October compared to last. The most noticeable increase year over year has been in the $400,000 to $699,999 price points. As a result, the total residential benchmark price has increased to $430,600 which is 0.5% higher than the beginning of the year.
- The Olds real estate market is one of the few across the Province that saw a slow down in October compared to last year. With 9 sales for the month, it was 18.2% slower year over year but the inventory has also been dropping helping the inventory levels drop to 10.11 months. This continues to be a more challenging market where marketing a home with a compelling sales price is a must.
- Red Deer's Real Estate market had gains of 12.9% in sales this October compared to last. This was due to both the detached and semi detached markets showing noticeable improvement. The Row and Apartment sectors continue to struggle, as is the high priced market. There has been marked improvement in the $200,000 to $399,999 price points, and significant improvement for sales in the $400,000 to $499,999 price points. This activity has helped lower the months of supply to 5.01 months which moves it closer to balanced market conditions.
- Rocky Mountain House had a very comparative month in October compared to the same time last year. With steady sales activity, and declining inventory, we are seeing the months of supply drop to 10.38 months. We are hoping to see this trend continue through the Winter months to bring more balanced markets to the area. Until then, when selling a home in this type of market, having a compelling price is a big component to any marketing strategy.
- The Strathmore market outperformed the ten year average for sales in October. With the higher sales volume, and less inventory coming onto the market, it has edged closer to balanced markets in the area. Most noticeable were the increases in sales in homes priced under $200,000, and the homes in hte $400,000 to $500,000 price range. Overall, the market in Strathmore does appear to be more balanced through 2020 than what was experienced in 2019.
- Sundre had a 60% increase in sales this October compared to last which greatly exceeded the ten year average for sales in the month. With lowering inventory, Sundre has entered into a more balanced market with 4 months of supply of inventory. This is an incredible number as the last time the months of supply was so low was in September 2012 when it was at 3.73 months.