Alberta Housing Market Report

Alberta Housing Market Overview

Alberta’s housing market is seeing some interesting movements in August 2023 as strong sales continue throughout the province. Inventory has decreased to the lowest level seen since 2006 for an August, while home sales reach a record-high. There were 7,527 home sales in Alberta during the month of August 2023, a 20% year-over-year increase. In comparison, the 9,825 new listings is a 4% year-over-year increase.

At a 77% sales-to-new-listings ratio (SNLR), firmly in a seller's market, inventory and months of supply has been falling and an underlying upward pressure on Albertan home prices remains. An SNLR above 60% typically signals a seller’s market, as more buyers are competing for a more limited set of homes. This can cause upwards pressure on Albertan home prices.

Strong sales and comparatively not-as-strong new listings growth has pushed inventory down 24% year-over-year and months of supply in the market down by 37% year-over-year.

Even as interest rates rise, Alberta’s housing market saw home sales reach a new record for August, while the benchmark home price also hit an all-time high. That’s a surprising feat to accomplish in light of two Bank of Canada rate hikes earlier in June and July 2023, and right off the bat after hitting an all-time high just last month as well.

For the month of August 2023, the average home price in Alberta was $445,190, up 4% compared to last year but down 2% from last month. While Alberta’s average home price decreased on a monthly basis, its benchmark home price continued to climb, soaring to a record-high of $485,000. That’s a 2% year-over-year increase.

For August 2023, detached home prices are up 5% annually and down 3% monthly to an average price of $525,641. Semi-detached homes had an average price of $438,831, up 8% annually but down 2% monthly, while row/townhouses had an average price of $348,989, up 15% year-over-year and up 1% from last month. Condo apartments had an average price of $269,862, up 13% compared to last year. That’s also a 1% monthly increase.

While all property types have seen an year-over-year increase equal to or greater than the province’s average price increase of 4%, the difference can be explained through changes in the composition of home sales. More condos are being sold this month compared to the same time last year. This brings down the average home sold price in the province as condos have a lower average home price than other property types.

Condo apartment sales in Alberta are up an astounding 48% year-over-year, even as detached home sales increase 13% year-over-year. Meanwhile, semi-detached home sales are up 10% year-over-year, and townhouse home sales are up 35% year-over-year.

Calgary's housing market is the largest and the most expensive in Alberta, with an average home price of $522,548, up 8% annually. In other areas of the province for the month of August 2023, Edmonton's housing market saw prices increase 7% annually to $397,811.

Besides Calgary and Edmonton, all other urban markets in Alberta are seeing a positive year-over-year change in prices, except for Fort McMurray. Fort McMurray home prices are down 1.5% year-over-year to $353,599.

Red Deer home prices are up 3% year-over-year to $349,999, Lethbridge home prices are up 4% year-over-year to $348,733, and Medicine Hat home prices are up 9% year-over-year to $330,337. Grande Prairie sits tight with an average home price of $330,315, unchanged from last year.

The housing supply in the province of Alberta is tightening. There were 1.19 months of supply in the City of Calgary during the month of August 2023, down 47% YOY, while Edmonton had 2.62 months of supply, also down by 47% YOY. Looking at housing inventory across the province, Alberta's months of supply is down 37% year-over-year to 2.36 months.