Real Estate Canada’s Stars: Calgary and Edmonton Shine in Western Canada
Posted On August 4, 2023
Alberta is making headlines for all the right reasons in real estate Canada.
In particular, Calgary and Edmonton in Alberta, a province in Western Canada, have become the most sought-after locations for potential homeowners and real estate investors. Despite the pandemic’s challenges and a dynamic market, houses for sale in Calgary and properties in Edmonton are very much in demand.
A New Trend in Canadian Real Estate
Historically, the real estate market spotlight shone mainly on the more populous provinces of Ontario and British Columbia. In Hamilton-Kitchener and Milton, homes for sale listings are a hot commodity.
However, the recent surge in property costs coupled with the rise of remote work has prompted a shift in focus. Today, more Canadians are considering migrating to regions with more affordable housing options, leading to an influx of searches for Edmonton real estate on some of Canada’s best real estate websites.
Why Calgary and Edmonton?
The rising interest in Calgary and Edmonton is more than merely a product of affordability. These cities offer a unique blend of economic stability, diverse industries, and high-quality living, making them attractive options for homeowners and investors.
Economic Fortitude and Industry Diversity
Both cities are renowned for their economic resilience, largely thanks to their diversified industries. While they have deep roots in the energy and agriculture sectors, they’ve also made significant strides in technological innovation, further bolstering their economic stability.
Balanced Growth and Stable Real Estate
Calgary and Edmonton have consistently demonstrated a well-regulated housing environment with steady growth in benchmark home prices. This balanced growth sets them apart from other Canadian markets that often experience drastic price fluctuations.
Affordability Meets Prosperity
One of the key selling points of these cities is the unique balance they strike between economic prosperity and housing affordability. While they offer a high standard of living, properties in Edmonton and Calgary costs remain relatively low compared to other major cities.
Agile and Adaptable Markets
The real estate markets in Calgary and Edmonton have shown remarkable resilience in the face of economic uncertainties. Their swift adaptation to changing market dynamics and evolving preferences has led to a continuous influx of new residents and investors.
Investment Opportunities Abound
The economic stability, burgeoning populations, and diverse industries in Calgary and Edmonton create a ripe environment for lucrative real estate ventures. Whether you’re considering commercial spaces, rental units, or residential properties, these cities present ample investment opportunities.
High-Quality Living Amidst Natural Splendors
Beyond economic and investment considerations, when you opt for houses for sale in Calgary or Edmonton, you enjoy an enviable quality of life. Residents can indulge in various outdoor activities against the backdrop of breathtaking natural landscapes, including the nearby Rocky Mountains.
A Closer Look at Calgary’s Real Estate Market
As one of Canada’s most active real estate markets, Calgary has witnessed significant growth in residential property transactions. Despite the challenges posed by market fluctuations and rising interest rates, Calgary’s real estate market has stood firm, setting records for home sales and attracting a steady stream of interested buyers.
The June 2023 report from the Calgary Real Estate Board underscores this resilience, as the market displayed significant activity despite challenges. The month saw a surge in residential property transactions, with 3,146 properties changing hands and a 7.9% month-over-month increase in new listings. Although new listings saw a 2.9% year-over-year decrease, the robust buyer interest indicated a healthy market.
The supply-demand balance remained active, reflected in a sales-to-new listings ratio of 80%. While slightly lower than the previous month’s 85%, it continued to signal a seller’s market. Inventory levels, down 36% from the prior year, experienced an 8.3% increase from May, resulting in a current inventory-to-sales ratio of 1.1 months.
The popularity of condominiums has surged, with more buyers opting for these affordable and convenient housing options over detached houses. As a result, Calgary’s benchmark home price has experienced an impressive increase – 33% over three years, reaching $564,700 in June 2023—a 4.4% rise year-over-year.
Edmonton’s Real Estate Resilience
Despite the ups and downs in average home prices, Edmonton’s real estate market showcases a landscape of resilience. The city has witnessed significant shifts in homebuyer preferences, with distinct trends emerging among different property types.
Edmonton’s median residential sale price remained steady at $389,999 in June 2023, a 1.3% decline from the prior year. Single-family detached homes slowed down to a median sale price of $460k, showcasing a 1.5% yearly decrease and a 2.1% monthly decrease. Median townhouse sale prices rose by 2.1% annually and 0.4% monthly to $251k. Condo apartments followed a different trajectory, with a median price of $175k for June 2023, down by 5.7% year-over-year but up by 0.2% from the previous month.
Edmonton’s three-year benchmark price growth stood at a modest 9.6% as of May 2023, highlighting a comparatively lower level of speculation. The city’s real estate market maintains a seller’s market status, marked by a residential sales-to-new-listings ratio of 70% sales-to-inventory ratio of 36%.
Edmonton’s real estate market highlights its attractiveness for homebuyers and investors. As the city evolves, it positions itself as a compelling destination within Canada’s real estate landscape.
Conclusion: Calgary and Edmonton – Stable Real Estate Prospects
In conclusion, the narratives of Calgary and Edmonton in the Western Canadian real estate market stand as a testament to the enduring diversity in their economies and property markets. Their ability to weather challenges and embrace change has fortified their positions as sought-after destinations for homeowners and investors alike. As these cities evolve, their real estate landscapes shine brightly with the allure of stable growth, affordability, and the potential for solid returns.
Their unwavering commitment to prudent practices and balanced growth showcases the potential for sustained prosperity in Alberta, if not real estate Canada, as a whole. Calgary and Edmonton stand tall, reassuring homebuyers and investors about a prosperous and enduring real estate future.
When considering your next real estate investment or looking for your new home, consider the opportunities that Calgary and Edmonton offer. Whether browsing through the best real estate websites in Canada or directly engaging with real estate agents, keep these Western Canada hotspots on your radar.