Sales on MLS systems in Alberta in February recorded an overall, year-over-year gain of 11 percent, however, activity varied significantly in various markets across the province, says Ann-Marie Lurie, chief economist for the Alberta Real Estate Association.
Here are some of Lurie’s market observations from her February report.
Central Alberta
Sales pulled back by nearly nine percent, as jobs losses and gains in unemployment levels weigh on the market. New listings increased, preventing any further reductions in inventories for the month and keeping the months of supply elevated.
Despite the persistent oversupply, average prices remain slightly higher than last year, likely due to some gains in higher-priced home sales. However, median prices did trend down.
Fort McMurray
Sales growth continued, resulting in the best sales start of the year since 2014. While sales remain well below longer-term averages, the improvement helped offset a gain in new listings, easing inventories.
At the same time, prices continue to rise, offsetting some of the significant declines that occurred at the start of last year.
Grande Prairie
Gains in new listings contributed to the year-to-date rise of more than 30 percent, far outpacing the sales growth of more than 12 percent. This jump in new listings caused inventories and the months of supply to trend up.
The gain in supply contributed to some of the downward pressure on prices, however, some of the price declines could also be related to distribution changes.
Lethbridge
With year-to-date sales of 332 units, this is at levels not seen since 2008. However, the growth in sales also came with a jump in new listings and inventories rose compared to last year. Despite the gain, the months of supply remains below a year ago. Overall prices continue to remain relatively stable.
Medicine Hat
Year-to-date sales levels are relatively stable compared to last year and are consistent with the lower levels recorded over the previous two years. At the same time, new listings continue to rise, pushing up inventory levels and the months of supply.
Despite indicators showing signs of oversupply in the market, prices have continued to increase. In part this is due to distribution changes as a larger share of the sales are occurring in some of the higher price ranges.
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