Grande Prairie, Alberta is witnessing unbelievable market statistics as spring 2021 draws to an end. Located in north-western Alberta in the Peace River Country, Grande Prairie is home to nearly 64,000 residents and is considered to be one of the medium sized cities in the province; a stark difference to areas with the same population in the central provinces of Ontario and Quebec. Sitting nearly 500km northwest of Edmonton, and on the cusp of the Alberta-British Columbia border, Grande Prairie has been drawing in a consistent stream of prospective homeowners due to the vast land available at a more affordable price than would be found in other areas of both the province and the country.
Spring has Sprung in Grande Prairie Real Estate
Coming off a strong first quarter of the year which saw residential property sales increase by 47.8% compared to the first quarter of 2020 with 612 units sold, the city was sure to have a hot spring. After a fairly slow start to the second quarter of 2020, the year-over-year statistics told two starkly different stories!
Due in large part to the introduction of tight COVID-19 restrictions across the country, the spring of 2020 saw tepid real estate activity in most markets across Alberta, effectively pausing the province’s real estate industry. However, 2021 is a totally different story. In May 2021, the number of sales was significantly higher than they were the previous year, with 138 homes sold during the month – a jaw-dropping 151% year-over-year increase. This contributed to a year-to-date sales figure of 606 units for the small, Albertan city.
Compared to long-term trends, the first five months of 2021 have been fairly consistent with historical values, but are not setting any records, which is a shock considering that the majority of local markets from coast to coast are posting record-shattering figures, month after month.
In May, 227 new properties hit the market, a 10.7% increase compared to May 2020. This helped push the inventory left at the end of the month up by 7.1% compared to 12 months ago. However, the new inventory was not enough to counteract the demand that has been running strong for the better part of the last year, and has left only 4.06 months of supply on the market; a 57.3% decrease compared to the same metric last May. This said, the figure is consistent with long-term trends in the market for the month of May.
Prices across the city have varied quite a bit compared to the prices across the rest of Alberta. Come the end of May, the average residential price for the month was $317,195. While this is a 6.1% year-over-year gain, it is led mostly by the increase in price for detached residential homes which had a 9% year-over-year gain. The average year-to-date price of all styles of homes in the city is slightly less than that for the month of May. Coming in at $313,081, the year-to-date average price of all units has remained steady compared to May 2020 values.
What to Expect in the Grande Prairie Housing Market?
The real estate market in Grande Prairie, Alberta has not followed the inflation trend seen across the country. With sale numbers, average prices, and supply remaining fairly consistent to historical trends, it is anticipated that the market will stay relatively the same for the hot summer months of 2021.
With detached homes currently leading the way in unit sales and price increases, those units will remain sought after, and if the new listings fall below the sales, it can only be assumed that the price of these units will continue to increase until it resembles the red hot sellers markets of cities and towns nationwide.
Simply put, whether you are looking to buy a home or sell a home, if you live in Grande Prairie, now is the time to do so. For those from outside the city and outside the province, Grande Prairie could be the next hot spot for an influx of out-of-town buyers, particularly first-time homebuyers who are still grappling with inaccessible, unaffordable, and fiercely competitive markets elsewhere in the country.
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