Alberta has been experiencing some interesting trends, including its recreational property boom and strong markets early in the year. From a quarterly perspective, the Alberta real estate market in the first quarter of 2024 saw a general increase in sales and average prices.
Sales
Starting with sales, there was a 4.2% increase quarter-over-quarter in the first quarter of 2024, and a significant 31.0% rise year-over-year, reflecting a strong demand for properties within the region. Population growth will have at least partially contributed to this.
Listings
Meanwhile, the number of listings dropped. New listings experienced a quarter-over-quarter decline of 12.3% in Q1 2024, although there was still a slight rise of 4.7% year-over-year.
Active listings overall also decreased, dropping by 10.2% quarter-over-quarter and 17.0% year-over-year, showing a decreasing supply of available properties, which could lead to more competition among buyers.
Months of Inventory
In relation, the months of inventory decreased from 2.6 to 2.3, indicating a tightening supply-demand balance within the market, and reflecting the trends of sales increasing while new and active listings decreased.
Sales-To-New Listings Ratio
Additionally, the sales-to-new listings ratio surged from 70.1% in the fourth quarter of 2023 to 86.2% in the first quarter of 2024, signaling a heightened level of market activity and a stronger seller’s market.
Prices
Average house prices continued to rise, with a 1.9% increase quarter-over-quarter in Q1 2024, and a notable 9.9% surge year-over-year. This upward trend in prices reflects the demand overtaking the available supply, with fewer listings.
Under-Construction
The under-construction segment of Alberta’s market saw a slight decrease of 0.7% quarter-over-quarter in Q1 2024. However, there was a larger 9.4% increase year-over-year as a counter.
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Other Economic Indicators
Unemployment Rate
Transitioning to the economic landscape, the unemployment rate remained unchanged at 6.3% from the previous quarter, indicating a stable labour market environment.
Mortgage Arrears
Signs of household financial strain show in the percentages of mortgage arrears. There was a slight rise from 0.32% in Q4 2023 to 0.33% in Q1 2024.
Population
Population growth remained positive, albeit at a slower rate compared to other metrics, with a 0.9% increase quarter-over-quarter in Q1 2024, with a greater 4.4% increase year-over-year.
As part of its response to Canada’s ongoing housing challenges, the federal government has added another 12 new properties to the Canada Public Land Bank,...
As part of its response to Canada’s ongoing housing challenges, the federal government has added another 12 new properties to the Canada Public Land Bank,...
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