Alberta Housing Market Report

Alberta Housing Market Overview

Alberta’s housing market might be starting to see some signs of reversal as home prices and sales increase on a monthly basis. For February 2023, the average residential home price in Alberta was $427,694, up 2% compared to last month. It’s also a decline of 11% year-over-year, a more significant drop compared to the -5% year-over-year decline seen last month, but this is partially attributable to home prices in Alberta peaking last winter. A changing market, where detached homes are making up proportionately less sales, is also affecting the province’s average home price.

The 4,563 home sales in Alberta during the month of February 2023 is a 44% decrease year-over-year, but up by 34% compared to last month. New listings are down a milder 32% year-over-year, while inventory has increased by 1% year-over-year. Months of supply are now rising rapidly, increasing 81% compared to this same time last year.

For February 2023, detached home prices are down 8% annually to an average price of $514,653. That’s an increase of 3% compared to last month. Semi-detached homes had an average price of $445,079, down 1% annually, while row/townhouses had an average price of $332,436, up 1% year-over-year and up 7% month-over-month. Condo apartments had an average price of $252,690, unchanged from last year.

Sales of detached homes in Alberta are down 52% year-over-year, while condo apartment sales are down only 14% year-over-year. Meanwhile, sales of semi-detached homes and row houses/townhouses are down 39% year-over-year.

Calgary's housing market continues to be the most expensive in Alberta, with an average home price of $506,685, down 8% annually. Lethbridge has been the best-performing housing market over the past year, with prices up 1% to an average price of $351,783. Fort McMurray home prices are unchanged at $337,842. All other Alberta housing markets have seen a decrease in prices year-over-year.

In other areas of the province for the month of February 2023, Edmonton's housing market saw prices decline a stunning 10% annually to $369,286, while Red Deer experienced an 8% decrease in prices year-over-year to $311,949. Grand Prairie home prices are down 1% year-over-year to $309,240. Average Medicine Hat home prices are down 5% YOY to $298,785.

The housing supply in the province of Alberta remains mixed. There were only 1.58 months of supply in the City of Calgary during the month of February 2023, up 44% YOY, while Edmonton had 4.68 months of supply, up 106% YOY. Looking at housing inventory across the province, Alberta's months of supply is up 81% year-over-year to 3.7 months.