Alberta Housing Market Report

Alberta Housing Market Overview

View Home Listings in Alberta

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View Home Listings in Alberta

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Alberta’s housing market is heating up as tight inventory levels coupled with strong demand and sales activity are helping to push up Alberta home prices. For May 2024, Alberta’s benchmark home price of $514,200 is the highest it has ever been, and it’s up 9.3% year-over-year. It’s also the fifth consecutive month that Alberta’s benchmark home price has broken an all-time record.

Meanwhile, Alberta’s average home price also broke an all-time high, rising 8% year-over-year to $507,706. That’s the first time Alberta’s average home price has been above the $500,000 mark and the second month in a row that it has broken an all-time record.

Sales and New Listings Surge

May 2024 saw a substantial year-over-year increase in Albertan home sales across all property types, with a respectable 6% rise compared to May 2023. In comparison, home sales in Ontario’s housing market are down 16% year-over-year, while British Columbia’s housing market is seeing a 12% decrease year-over-year.

This increase in Alberta home sales was driven primarily by improving sales in just a few regions, with Edmonton and Red Deer leading the way in terms of growth. Other areas of the province, such as Calgary, Lethbridge, and Medicine Hat, are seeing a decrease in sales year over year. The number of new listings provincewide also increased, reaching 12,921 - an 8% rise year-over-year (YoY).

Key Statistics:

1. Total Residential Sales: 9,283 (6% increase YoY)
2. New Listings: 12,921 (8% increase YoY)

This positive trend in sales, but with a larger influx of new listings, has slightly loosened market conditions. The sales-to-new listings ratio decreased to 72% from the 76% ratio last month in April 2024. The months of supply dropped to 1.79, a 19% decrease year-over-year, but higher than the 1.64 months of supply in April 2024, the lowest since 2007.

The tightening of market conditions is evident across the province. Calgary and Edmonton are reporting the tightest conditions, but cities such as Red Deer and Medicine Hat are also experiencing inventory shortages. Months of supply are falling below two months in all regions except Fort McMurray.

Inventory Trends:

1. Total Residential Inventory: 16,623 (14% decrease YoY)
2. Months of Supply: 1.79 (19% decrease YoY)

These figures highlight the aggressive pace at which properties are absorbed, leading to competitive bidding scenarios and increasing prices.

As market conditions tighten, prices across all property types have grown significantly. The average residential price in Alberta rose to $507,706, reflecting an 8% increase compared to the previous year. This trend is consistent across different property categories, with notable price hikes in detached, semi-detached, row, and apartment properties.

Average Prices by Property Type:

1. Detached: $597,719 (8% increase YoY)
2. Semi-Detached: $511,827 (11% increase YoY)
3. Row: $392,082 (16% increase YoY)
4. Apartment: $296,599 (10% increase YoY)

Alberta: Seller’s or Buyer’s Markets?

The provincial sales-to-new listings ratio (SNLR) was 72% in May 2024, which is in the seller’s market territory. This means that for every 100 new listings, the market absorbed 72 listings this month. This clearly indicates that demand continues to outpace supply in Alberta's housing sector.

The sales-to-new-listings ratio (SNLR) measures the level of demand vs. the level of supply in the market and can be used to indicate whether it is a buyer's or seller's market. A high SNLR above 60% indicates a seller's market, where there are comparatively more buyers than homes available, leading to higher prices and less negotiating power for buyers. On the other hand, a low SNLR below 40% suggests a buyer's market with more homes available than interested buyers, giving buyers more negotiating power and potentially lower prices. Alberta’s major cities, except Fort McMurray, are currently in a seller’s market, which can help push up Alberta home prices.

Calgary's housing market continues to be a hotbed of real estate activity, although sales have decreased by 1% year-over-year. The average price in Calgary climbed 11%, reaching $612,772. The sales-to-new listings ratio stands at 71%, and the months of supply is just 1.1.

Edmonton reported the largest sales growth among all Alberta regions, with an 18% increase year-over-year. The average home price in Edmonton was $441,350 in May 2024, a 5% increase compared to May 2023. The months of supply in Edmonton are at 1.86, down 35% year-over-year, reflecting a rapidly tightening market.

Red Deer saw a 4% increase in sales, with the average price rising by 22%, the largest annual price growth of Alberta’s major cities this month, to $400,990. The months of supply in Red Deer decreased to 1.30, indicating heightened demand and limited availability.

Lethbridge experienced a 4% decrease in sales, with the average price at $381,110, up 10% year-over-year. The months of supply in Lethbridge fell to 1.57, down 22% year-over-year, suggesting a competitive market environment.

Medicine Hat reported a 17% year-over-year decrease in sales, with the average price at $371,734, up 8% year-over-year. The months of supply decreased to 1.44, down 6% year-over-year.

Grande Prairie saw a 5% year-over-year decrease in sales, with the average price increasing 5% year-over-year to $346,490. The months of supply in Grande Prairie dropped to 1.97, down 27% year-over-year.

Fort McMurray reported an 8% year-over-year decrease in sales, with the average price falling by 4% to $363,680. The months of supply in Fort McMurray was 4.44, which has increased by 3% year-over-year.