The Alberta real estate market in Q2 2024 showed resilience with year-over-year sales and price increases, despite a slight quarter-over-quarter decline in sales, according to an Edge Realty Analytics report. Construction activity remains strong.
Sales
Sales decreased by 1.5% quarter-over-quarter but rose by 7.0% year-over-year. This suggests that while there was a slight dip in activity compared to the previous quarter, the market remains stronger than it was a year ago, indicating a resilient demand.
Listings
New listings increased by 3.3% quarter-over-quarter and by 8.6% year-over-year. This influx of new listings indicates that more property owners are entering the market.
Active listings saw a marginal increase of 0.3% quarter-over-quarter but declined by 8.8% year-over-year. The year-over-year decrease indicates a tighter market compared to last year, with fewer properties available for sale.
Prices
Prices rose by 1.9% quarter-over-quarter and by 8.9% year-over-year, indicating strong price appreciation and sustained demand pressures. This robust price growth highlights a competitive market environment.
Months of Inventory
The months of inventory, or how long it would take to sell existing homes on the market given the current pace of sales, remained constant at 2.4.
Sales-to-New Listings Ratio
The ratio decreased from 79.7% in Q1 2024 to 75.0% in Q2 2024.
Construction
Under Construction: The number of properties under construction grew by 2.0% quarter-over-quarter and by 15.7% year-over-year.
Economic Indicators
Population Growth
Population growth was solid, with a 1.0% increase quarter-over-quarter and a 4.4% rise year-over-year.
Unemployment Rate
The unemployment rate rose from 6.3% in Q1 2024 to 7.1% in Q2 2024. For reference, Canada’s unemployment rate overall in June was 6.4%.
Mortgage Arrears
Mortgage arrears slightly decreased from 0.33% in Q1 2024 to 0.31% in Q2 2024, a slight improvement in homeowners’ financial stability.
Rentals
As of July 2024, according to Rentals.ca, Calgary showed a steady increase in rental prices for both one-bedroom and two-bedroom apartments. The average rent for a one-bedroom apartment rose by 0.5% month-over-month to $1,743 and increased by 3.3% year-over-year. For two-bedroom apartments, the rent increased by 0.2% month-over-month to $2,145 and rose by 2.8% year-over-year.
Edmonton experienced greater rental price growth, particularly on a year-over-year basis. The average rent for a one-bedroom apartment remained unchanged month-over-month at $1,368 but surged by 14.4% year-over-year, indicating strong annual demand. For two-bedroom apartments, the rent increased by 1.1% month-over-month to $1,708 and rose by 13.5% year-over-year.
