Edmonton Homes for Sale More Affordable Than Calgary

The Alberta real estate market has enjoyed a healthy performance this year, particularly in the home stretch of 2023. Despite higher interest rates and anemic economic growth, the province has witnessed robust sales activity and a boost in price growth as of late. 

In October, residential property sales surged 16 per cent year-over-year, totalling nearly 6,000 units, according to the Alberta Real Estate Association (AREA). The average selling price for a home in the Alberta housing market advanced five per cent to $455,891. 

But what about Alberta’s two largest cities? Well, for one thing, the Edmonton real estate market is more affordable than the Calgary housing sector. 

State of the Edmonton Housing Market

According to the Realtors Association of Edmonton (REA), the average selling price of Edmonton homes for sale in October slipped 0.7 per cent year-over-year and edged up 0.6 percent month-over-month to $397,000. The median sales price was flat from September to October and declined at an annualized pace of 1.3 per cent to $370,000. 

Here is a look at the average prices for the four primary residential property categories on a month-over-month basis: 

• Detached: -1.4 per cent to $487,000 
• Semi-Detached: +9 per cent to $386,000 
• Townhome: -3.1 per cent to $259,000 
• Apartment Condominium: +11.8 per cent to $204,000 

Residential property sales tumbled 12 percent, with 1,812 units exchanging hands, association data show. 

Supply has been mixed throughout the year. New residential listings dropped nearly nine percent month-over-month, totalling 2,753 units. On a year-to-date basis, new listings advanced close to six per cent, as 31,000 units have been brought to the market. Active listings stand above 6,200 units. 

“We’ve seen in other markets what a low supply of inventory can do to home prices,” said REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles in a statement. “And that applies on a smaller scale to any market during the colder season. There are buyers who can’t wait until spring when more properties become available, and they’re willing to spend more on the right place. But until we see interest rates come down, for many people, those detached homes are still out of reach.” 

A Look at the Calgary Real Estate Market

The benchmark sales price in the Calgary housing market advanced at an annualized rate of nearly ten percent to $571,600 in October, according to the Calgary Real Estate Board (CREB). But how are the rest of the property categories performing compared to the same time a year ago? 

• Detached: +12 per cent to $697,600 
• Semi-Detached: +13 per cent to $628,700 
• Townhome: +19 per cent to $425,200 
• Apartment Condominium: +16 per cent to $316,600 

Meanwhile, sales activity has been active over the past year as transactions increased 17 per cent to 2,171 units. 

Like the Edmonton housing market, the Calgary real estate sector has witnessed mixed inventories. New residential listings soared close to 24 per cent year-over-year, totalling nearly 2,700 units. Active listings declined 18 percent to below 3,200 units. Months of supply, which measures the number of months it would take to exhaust current inventories at the present rate of sales activity, plunged 30 per cent to 1.47—days on the market also plummeted nearly 34 per cent to 27. 

“Despite some recent improvements in new listings, supply levels remain challenging in our market,” said CREB® Chief Economist Ann-Marie Lurie in a statement. “It will take some time to see a shift toward more balanced conditions and ultimately more price stability.” 

Migration Supporting Demand

Alberta might be one of the hottest places in the country right now as the province is attracting more people. 

In October, Statistics Canada reported that Alberta was home to 4.7 million people as of July 1, up 4.1 per cent from the same time last year. This is equal to more than 184,000 people planting new roots in the Western province. 

In the first quarter of 2023 alone, approximately 16,000 people migrated to Alberta from other places in the nation. Plus, roughly 36,000 individuals from outside of Canada situated themselves in the province. 

“The influx of people in Alberta has contributed to the recent surge in housing demand and resilient consumer spending,” said Mark Parsons, vice president and chief economist at ATB Financial, in a report. “It’s also added to the labour force, which is growing at its fastest annual pace since 2007, leaving aside the COVID recovery.” 

He added: “Some sectors are growing more than others, like food and accommodations and construction still have high job vacancy, so migration does provide a steady source of people to fill some of these jobs.” 

As more people relocate to Alberta, some market analysts wonder if Calgary’s affordability issues will venture north into Edmonton. Indeed, Edmonton has maintained its status of being one of the most affordable major urban centres in the country. Will this continue? Time will tell.