Edmonton-area housing prices increased in 2021, demand continuing to outpace supply in 2022

File photo.

Housing prices increased significantly in Edmonton last year, with double-digit gains for detached properties, new data from Royal LePage shows.

According to the real estate firm's annual price index survey, released Friday, Edmonton housing prices increased in 2021, with the median price of a single-family home sitting around $469,900 — an increase of 11.6 per cent.

The aggregate home price in Alberta's capital city increased five per cent year over year to more than $428,000.

All housing types saw increases in prices except for condominiums, which decreased in value by around two per cent to an average of $193,600, Royal LePage says.

Nationally, housing prices soared by 17.1 per cent in 2021, for an average of $779,000.

"The positive momentum of Edmonton's economy, and the relative affordability of the city continues to drive demand from first-time buyers and young professionals looking to move up in the housing market," said Tom Shearer, Royal LePage Noralta Real Estate owner, in a statement.

"As strong demand continues to outpace housing supply, housing prices will remain on their upward trajectory."

Pricing for new developments continues to increase due to supply and labour shortages, and concerns about pandemic recovery, Shearer added.

"The supply shortage remains a major roadblock for would-be buyers, and continues to apply upward pressure to prices," Shearer said.

"I expect we'll see a surge of demand in the first half of 2022, ahead of expected interest rate hikes."

The Realtors Association of Edmonton says residential sales increased in 2021 compared to the year before, with single-family home sales increasing by 16.5 per cent from December 2020 but falling 29 per cent from November 2021.

Despite seeing more sales, overall inventory in the capital region was down by 14.1 per cent compared to last year, the association representing Edmonton-area realtors says.

The Realtors Association of Edmonton says condos and duplexes took longer to sell on average when compared to December 2020.

Single-family homes sat on the market for an average of seven days less than in December 2020, at 46 days.

"2021 was an incredible year for the Edmonton real estate market, including a record-breaking month in November," said Shearer, formerly the Realtors Association of Edmonton chair.

"While we saw some substantial changes in the month-to-month activity, the year-over-year stats for residential unit sales and listings in the Greater Edmonton Region were significantly higher than December of last year."