Alberta Housing Market Report
- April 16, 2025 Update: Today’s Lowest mortgage rate in Alberta is 3.74% for 5-Year Fixed.
Alberta Housing Market Overview
Alberta Housing Market as of February 2025
Alberta's housing market showed continued price strength but sales moderation in February 2025. The average home price in Alberta increased to $509,468, the second-highest price on record, up 1.3% from January 2025's $503,078 and 5.7% higher than February 2024. It’s below October 2024's record of $544,752.
Sales and New Listings
February 2025 saw a significant shift in market dynamics, with sales declining 10% year-over-year to 5,223 transactions. This reverses January's positive trend and suggests growing market caution. The decline was most pronounced in detached homes (down 12%) and apartments (down 17%), while semi-detached homes held steady with sales unchanged from last year.
Regional performance varied considerably, with Calgary showing the sharpest sales decline at 19% year-over-year, while smaller markets like Red Deer (+18%), Medicine Hat (+19%), and Grande Prairie (+8%) continued to see sales growth. This divergence suggests buyers may be seeking more affordable alternatives to the major urban centers.
New listings remained relatively unchanged at 8,138 (up 0.7% year-over-year). Despite the sales decline, inventory levels decreased just 1.6% year-over-year to 12,992 units.
Key Statistics:
- Total Residential Sales: 5,223 (10% decrease year-over-year)
- New Listings: 8,138 (0.7% increase year-over-year)
The sales-to-new listings ratio increased to 64% in February 2025 from January 2025’s 58%, placing Alberta back in the seller's market territory. This appears to contradict the sales decline but reflects the fact that new listings growth has slowed substantially from January 2025's 18% year-over-year increase of 7,775 new listings, while inventory remains tight across most regions.
Red Deer continues to have the tightest market conditions with just 1.32 months of supply, helping to explain their substantial price growth of 17% year-over-year.
Mixed Market Conditions
Inventory trends in Alberta continued to show regional disparities in February 2025. Calgary's inventory increased 75% year-over-year to 4,183 listings, while Edmonton's inventory continued its decline, down 23% year-over-year to 2,425 listings. This divergence is reflected in the months of supply metric, with Calgary rising to 2.41 months (up 118% year-over-year) while Edmonton decreased to 1.90 months (down 16% year-over-year).
Smaller markets continue to experience tight inventory conditions. Red Deer's months of supply fell 43% year-over-year to just 1.32 months, while Grande Prairie decreased 36% to 1.55 months. These tight conditions help explain the strong price growth in these regions.
Inventory Trends:
- Total Residential Inventory: 12,992 (1.6% decrease year-over-year)
- Months of Supply: 2.49 (9.6% increase year-over-year)
Rising Prices Across Property Types: Unlike January, February 2025 saw price increases across all property types, including apartments. The total residential average price in Alberta rose to $509,468, a 5.7% increase compared to February 2024 and a 1.3% increase from January 2025.
Average Prices by Property Type:
- Detached: $603,554 (5.2% increase year-over-year)
- Semi-Detached: $535,759 (9.1% increase year-over-year)
- Row: $391,414 (2.5% increase year-over-year)
- Apartment: $295,501 (6.6% increase year-over-year)
Alberta: Seller’s or Buyer’s Markets?
| City | February 2025 Sales-to-New-Listings Ratio (SNLR) | January 2025 Sales-to-New-Listings Ratio (SNLR) | Change | Market Type |
|---|---|---|---|---|
| Calgary | 61% | 50% | Seller's Market | |
| Edmonton | 67% | 65% | Seller's Market | |
| Red Deer | 90% | 62% | Seller's Market | |
| Lethbridge | 95% | 83% | Seller's Market | |
| Medicine Hat | 89% | 61% | Seller's Market | |
| Grande Prairie | 83% | 89% | Seller's Market | |
| Fort McMurray | 74% | 48% | Seller's Market | |
| Alberta | 64% | 58% | Seller's Market |
The provincial sales-to-new listings ratio (SNLR) increased to 64% in February 2025, shifting from January 2025's balanced market (58%) into the seller's market territory. This means that for every 100 new listings, the market absorbed 64 listings this month. Despite the overall sales decline, the market remains tight due to limited new inventory growth.
Regional Breakdown
Calgary
Calgary's housing market continued to show significant changes, with home sales decreasing by 19% year-over-year in February 2025. Despite this sales slowdown, the average price in Calgary climbed 5% over the past year, reaching $612,838. The sales-to-new listings ratio increased to 61% from January 2025's 50%, moving Calgary back into seller's market territory despite rising inventory. Months of supply more than doubled to 2.41 (up 118% year-over-year), making Calgary the only major Alberta city with such a dramatic increase in supply.
Edmonton
Edmonton's market moderated in February, with sales declining 7% year-over-year, a reversal from January 2025's 11% growth. The average home price in Edmonton was $449,554 in February 2025, a 10% increase compared to February 2024, maintaining strong price growth despite the sales decline. The months of supply in Edmonton continued to decline to 1.90, down 16% year-over-year, supporting the continued price appreciation.
Red Deer
Red Deer experienced the strongest market conditions among major Alberta centers in February, with an 18% year-over-year increase in sales and a 17% increase in average home price to $398,215. The months of supply in Red Deer dropped to 1.32, down 43% year-over-year, making it the tightest market in the province and explaining the substantial price growth.
Lethbridge
Lethbridge's market stabilized, with sales up just 1% year-over-year to 140, with the average price increasing 7% to $402,643. The months of supply fell to 1.73, down 14% year-over-year, maintaining strong seller's market conditions with an SNLR of 95%.
Medicine Hat
Medicine Hat reversed January's trend with a 19% year-over-year increase in sales to 70, with the average price rising 6% to $359,974. Months of supply decreased dramatically to 1.51, down 47% year-over-year, making it one of the tightest markets in the province.
Grande Prairie
Grande Prairie continued its strong performance with an 8% year-over-year increase in sales to 99 and maintained robust price growth with an 11% annual increase to $356,035. The months of supply in Grande Prairie remained low at 1.55, down 36% year-over-year, supporting continued price appreciation.
Fort McMurray
Fort McMurray experienced a 4% year-over-year increase in sales, with the average price increasing 6% to $368,301, reversing January 2025's price decline. The months of supply in Fort McMurray decreased to 3.45, down 23% year-over-year, though it remains higher than other Alberta markets.
| City | Average Home Prices (February 2025) | Population (2021) |
|---|---|---|
| Calgary | 1,481,806 6.4% vs. 2016 | |
| Edmonton | 1,418,118 7.3% vs. 2016 | |
| Red Deer | 100,844 4.0% vs. 2016 | |
| Lethbridge | 123,847 5.5% vs. 2016 | |
| Medicine Hat | 76,376 -0.2% vs. 2016 | |
| Grande Prairie | 64,141 1.5% vs. 2016 | |
| Fort McMurray | 68,002 1.3% vs. 2016 |
Housing Markets of Major Cities in Alberta
Housing Markets Across Canada
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