Alberta Housing Market Report

Alberta Housing Market Overview

The average price of a home in Alberta was $430,964 in October 2022, a 2% increase year-over-year and a 0.2% decrease compared to last month. Despite high mortgage rates weighing down on the Alberta housing market, the average Alberta home price remains higher than last year’s average price for October. That’s a stark contrast to Canada’s housing market, which has seen the national average home price decrease by 7% year-over-year.

Even so, the effects of subdued demand for homes can be seen as Alberta sales activity continues to trend downwards. The 5,267 home sales in the province of Alberta for October is a 4.5% monthly decrease and a 20% decrease compared to October 2021.

As mortgage affordability becomes an increasingly pressing issue for those looking to buy a home in Alberta, the landscape of Alberta’s housing market is also changing. More Albertan homebuyers are moving towards condo apartments and away from more expensive detached homes. This shift is another factor that is putting downward pressure on the average price of a home in Alberta.

Sales of detached homes in Alberta are down 27% year-over-year, while condo apartment sales are up 3% year-over-year. Semi-detached homes and row homes saw relatively significant gains in sales activity compared to last year, with 11% year-over-year increases in sales for both categories.

For October 2022, detached home prices are up 6% annually to an average price of $508,258. Semi-detached homes had an average price of $416,708, up 4% annually, while row/townhouses had an average price of $307,698, up 3% year-over-year. Apartments were the only property type to see a decrease in average prices compared to last month, however slight, decreasing by $163 from last month’s average price of $264,668 to this month’s average price of $264,505. The average apartment price is up 5% year-over-year.

Calgary's housing market continues to be the most expensive in Alberta, with an average home price of $509,597, up 5% year-over-year and up 2% monthly. Calgary saw the largest annual price growth in the province. Lethbridge saw the second largest annual price growth, up 4% YOY to $329,849.

All other major cities in Calgary are now experiencing lower home prices this year compared to last year. Edmonton's housing market saw prices decline 1% annually to $375,283, while Medicine Hat experienced a 3% decrease in prices year-over-year to $300,593.

In other areas of the province for the month of October 2022, average Red Deer home prices are down 5% YOY to $320,941, average Grande Prairie home prices are down 5% YOY to $308,269, and average Fort McMurray home prices are down a remarkable 18% YOY to $333,992.

The housing supply in the province of Alberta remains mixed. There were only 2.09 months of supply in the City of Calgary during the month of October 2022, down 6% YOY, while Edmonton had 5.32 months of supply, up 22% YOY. Fort McMurray's deteriorating housing market can be seen with a 105% YOY increase to 7.60 months of supply, along with the lowest sales-to-new-listings ratio in the province, the largest YOY inventory gain, and the largest YOY new listings gain.

Looking at the entire Alberta housing market, province-wide sales are down 20% year-over-year to 5,267, while new listings are also down 8% year-over-year to 7,653. Inventory is down 7% year-over-year, and months of supply is up 16% year-over-year.

Due to a high inflation rate in Canada, aggressive Bank of Canada rate hikes have cooled demand from those looking to buy a home in Alberta. Slowing sales and higher inventory levels have softened Alberta’s housing market, and it may result in some moderation in Alberta home prices over the next few months.