Alberta Housing Market 2021 (Updates, Statistics & Forecast)

Alberta Housing Market

Most of the Canadian real estate market experienced huge gains in the breakout of the Coronavirus pandemic.

Hence, most housing markets had record sales and record-breaking prices from urban centers to rural communities.

However, one of the few provinces that missed out on the significant housing boom is Alberta.

As a result of the pandemic, low oil prices, and recession, Alberta was at a disadvantage compared with the rest of the country. However, the story changed along the line.

So what is the current state of the real estate market in Alberta? Is the market going down or higher?

Here I answer these questions and more using real-time data to help you understand the current state of the Alberta housing market and future performance.

About Alberta

The province of Alberta is one of Canada’s thirteen provinces and territories. As one of the three Prairie Provinces, Alberta is part of Western Canada.

Alberta shares borderlands with the Northwest Territories (NWT) on the north, the Montana and US on the south, British Columbia on the west and Saskatchewan on the east.

On the eastern side of Alberta, the Great Plains can be found, while on the western side, the Rocky Mountains ring the province.

Despite the province having a predominantly continental climate, the air aridity makes its temperature change rapidly.

Because of occasional Chinook winds, western Alberta experiences fewer seasonal temperature swings.

With over 4 million populations, Alberta is the 4th most populous province in Canada and the 6th largest province in terms of area.

Calgary is the largest city in Alberta, while Edmonton is its capital city. Both cities have populations exceeding 1 million, making them Alberta’s largest census metropolitan areas (CMAs).

Thus, Edmonton and Calgary are home to more than half of Alberta’s population, leading to constant rivalry between the two cities. The province’s official language is English.

As part of the province’s identity, oil and gas also play a significant role. Agricultural, livestock, petrochemical industries, hydrocarbons, and frontier technologies form the backbone of the Alberta economy.

Due to the discovery of substantial oil deposits at the Leduc No. 1 well in 1947, the oil industry has been a pillar of Alberta’s economy since.

Thus, as Alberta’s hydrocarbon deposits are abundant, it represents 70% of Canada’s oil and natural gas extraction.

In addition to its natural beauty, fossils, and nature reserves, Alberta is home to numerous nature reserves. It houses the UNESCO World Heritage Sites such as:

  • Canadian Rocky Mountain Parks
  • Head-Smashed-In Buffalo Jump
  • Dinosaur Provincial Park
  • Wood Buffalo National Park
  • Waterton–Glacier International Peace Park
  • Writing-on-Stone Provincial Park

Additionally, Alberta is home to the following popular sites:

  • Canmore
  • Banff
  • Jasper
  • Drumheller
  • Lake Louise
  • Sylvan Lake

Moreover, the crime rate in Alberta is among the lowest in all of Canada, making it one of the favourite places to stay in the country.

Overview on Canada Housing Market

To better understand the Alberta housing market, it’s essential first to understand the Canadian housing market as a whole.

In each of its sectors, including its economy, politics, housing, education, and technology, Canada has been growing, attracting people from all over the world.

Consequently, more than 1 million newcomers will enter the country from 2021 to 2023. As a result, residents, businesses, and the country as a whole will have more growth opportunities.

Due to a strong labour market and a high in-migration rate, many parts of Canada were experiencing excess housing demand before the pandemic.

However, the current pandemic has only exacerbated the situation. The rock-bottom interest rates, a growing need for housing, and increasing savings were all factors behind the Canadian housing demand boom.

The current Canadian housing market is solid with low inventory, rapid house prices, and high demand for houses.

However, the Alberta housing market is different from other real estate markets in Canada, leading to serious concerns about real estate agents and home buyers.

Understanding the Current and Future State of Alberta Real Estate Market

First, it’s important to note that Alberta is one of the few Canadian provinces with the lowest cost of living.

That said, Albertans are faced with severe “economic hardship” as a result of low oil prices and high unemployment.

Consequently, there has been a low real estate demand, leading to a surplus of single-family houses in Edmonton and Calgary.

While the rest of the Canadian housing market enjoyed record-setting gains in sales activity and prices at the beginning of COVID-19, the Alberta real estate market lagged behind.

Following the recent national economic recovery and the energy sector boom, Edmonton is now regaining its feet.

The following are the update of the Edmonton housing market as per the first week of September 2021:

Edmonton Real Estate Market 2021

Ratio

63%

New Listings

542

Sales

341

Price Changes

446

Net loss/gain in listings this week

-365

Expired/Off-Market Listings

566

Active condo listings

2806

Active single-family home listings

3213

Condos 4-week running average

$219

Homes 4-week running average

$451

Source: Livrealestate.ca

Thus, with all key metrics pointing to significant growth, Alberta has now caught up to the rest of the country in its considerable increase.

Several jurisdictions across Alberta saw double-digit increases in real estate sales and prices during the first quarter of 2021.

But is it possible to sustain the real estate boom in Alberta, from Edmonton to Calgary? Of course, many people believe that the country’s real estate bubble will burst anytime soon.

Despite the anticipation of price ease sometime this year, Alberta’s homebuyers and homeowners may not experience any crashes.

Let’s have an overview of Calgary’s real estate market to understand Alberta’s future market performance better.

Calgary’s Housing Market 2021

Experts expect Calgary’s housing market to rise this year, based on the high demand for houses across other parts of Canada (Ontario and the West Coast).

However, the increase in Calgary’s housing market may not be the same with other parts of the country, but a low interest rate will likely boost more single-family houses demand in the city.

The Canada Mortgage and Housing Corporation (CMHC)’s Housing Market Outlook predicts the continued growth of the housing market throughout 2023.

CMHC released its Housing Market Outlook forecasting real estate market growth to the end of 2023. CMHC estimates national prices to increase up to 15% in 2021, with sales increasing by 9%.

With increased prices, CMHC expects national sales from 2022-2023 to be slightly lower than 2021, as more people may not afford homes at higher prices.

According to CMHC, Calgary’s average home price will increase by more than 3% by the end of 2021 against 2020. Sales are expected to increase by 21% due to the high demand for single-family homes.

Summary on Alberta Housing Market 2021

From the above analysis, it’s evident that consumer trends are evolving with increasing demand in Alberta.

The Alberta housing market has regained its feet from the pandemic hit, and it’s not slowing down anytime soon.

With an expert forecast on more demand for single-family homes in Alberta, we can only expect more booms in the market.

However, the real estate industry is not consistent. So it’s advisable to consult a certified and trusted REALTOR® before stepping your toes on the Alberta housing market.

Ken Morris Team exists for the sole reason to help you make the best decision in your real estate investment.

Whether you’re looking to buy a home in Alberta or invest in the province real estate market, the Ken Morris Team is ready to offer personalized recommendations for you.

Contact us at (403) 804 7314 or email us at KenMorris@royalLepage.ca to help you achieve your dream.

FAQs on Alberta Housing Market 2021

Why are Houses Cheap in Alberta?

The low cost of houses in Alberta is based on the severe “economic hardship” in Alberta as a result of low oil prices and high unemployment.

Consequently, there has been a low real estate demand, leading to a surplus of single-family houses in Edmonton and Calgary.

Will House Prices Go Down in Alberta?

Yes, house prices are expected to go down in Alberta from 2022-2023. This is due to the number of people that can’t afford high-priced homes.

Is Real Estate Going Up in Alberta?

Following the recent recovery of the national economy and the energy sector boom, real estate is now going up in Alberta.

This is expected to continue throughout 2021. But from 2022 to 2023, Alberta real estate is expected to go down as many people may not afford high-priced homes.

Is Now a Good Time to Buy a House in Alberta?

Yes and No. With a certified and trusted realtor, it may be easy to buy your dream house in Alberta.

But based on the ongoing increase of real estate in Alberta, it may be costly to buy a house in Alberta now. However, Alberta house prices are expected to decrease from 2022 to 2023 because many people may not afford the high cost.

Is the Cost of Living High in Alberta?

Alberta is one of the few Canadian provinces with the lowest cost of living. From housing, taxes, and entertainment, Alberta is an affordable and comfortable place to live.

Where is the Most Affordable Place to Live in Alberta?

Based on an in-depth comparison, Fort McMurray is the most affordable place to live in Alberta.

The average price of a home in Fort McMurray is $439,664, and an average family income is $221,425. This means it will take a couple only two years of income to buy a house in Fort McMurray.

Although taxes and other living expenses will lengthen the payout duration, it is still affordable due to the high income. 

If you have more questions about the Alberta housing market, drop them in the comment section.

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