Alberta Housing Market Report

Alberta Housing Market Overview

Higher borrowing costs have been weighing on the Alberta housing market as prices continue to drop across the province. For the month of July 2022, the average home price in Alberta was $437,028, up 3% year-over-year but down by 3% month-over-month. At the same time, Alberta home sales dipped to 6,818 for a 7% decrease year-over-year. This is the second time that Alberta’s home sales activity saw a negative year-over-year change in over one year. The other time was last month in June 2022.

Detached homes in Alberta no longer have the largest year-over-year increase out of all property types. For July 2022, detached home prices are up 6% annually to an average price of $510,424, and down 3% monthly. Semi-detached homes had an average price of $408,743, up 3% annually and down 3% monthly, while row/townhouses had an average price of $319,050, up 9% year-over-year and up 2% monthly. Row/townhouses were the only property type to experience a month-over-month increase in the average price. Condo apartments saw the lowest annual price growth in the province, up only 2% year-over-year to $247,727.

Calgary's housing market continues to be the most expensive in Alberta, with an average home price of $491,392, up 1% year-over-year and down 5% monthly. Next up was Edmonton's housing market with a 2% annual gain to $398,198. Lethbridge saw the largest annual price growth, up 8% to $341,853, while Grande Prairie experienced a 5% drop in prices year-over-year to $328,238.

In other areas of the province for the month of July 2022, Red Deer home prices are down 2% YOY to $343,101, Medicine Hat home prices are up 7% YOY to $327,018, and Fort McMurray home prices are up 1% YOY to $377,282.

Housing supply in the province of Alberta remains mixed. There were only 2.4 months of supply in the City of Calgary during the month of July 2022, down 18% YOY, while Edmonton had 4.7 months of supply, up 12% YOY. Fort McMurray's softening housing market can be seen with an 82% YOY increase to 6.08 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 7% year-over-year to 6,818 while new listings are up 2% year-over-year to 10,874. Inventory is down 9% year-over-year and months of supply is down 2% year-over-year, but both inventory and months of supply have been trending upwards over recent months.

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 a continued moderation in Alberta home prices over the next few months.