July 2, 2024

Guest Blog: Soaring Demand Amid Shrinking Inventories

Bōde

The Alberta real estate market has been experiencing some of the most activity in years with soaring demand and shrinking inventory. Significant recent migration to the province, combined with a growing and diverse employment market, this doesn’t appear to be a repeat of the boom and bust of the past.  The complimentary trends in Calgary and Edmonton highlight the unique aspects of the provincial market, painting a picture of robust activity and rising prices across the province.

Over the past five Mays, Calgary's housing market has shown impressive activity. Listings have increased by 12%, indicating more homes are entering the market. However, this increase in supply is overshadowed by a 16% surge in sales, underscoring strong demand. Despite more homes being listed, the inventory has plummeted by 31%, and the months of supply have been cut by more than half, down 53%.  Consequentially, a tight market has pushed prices up by a modest 1.2% month over month and a substantial 9.9% year over year. The overall picture is one of a vibrant, competitive market where demand continues to outstrip supply.

Edmonton's real estate market is also experiencing a surge in activity, characterized by increased listings, sales, and price growth.  While the Calgary market garners a lot of attention due to its rapid price increases and inventory shortages, Edmonton's market shows resilience and significant growth. The Edmonton market is driven by a strong balance between demand and supply, which has contributed to steady price appreciation and sales growth across different property types.

Over the past five Mays, Edmonton has seen a 7% increase in listings and a 41% jump in sales. Inventory has decreased by 18%, and the months of supply have dropped by 45%, indicating homes are selling more quickly. Prices have risen by 1% month over month and 5% year over year, reflecting a healthy market.

The Alberta real estate market is facing healthy demand and shrinking inventory. Calgary's market shows vibrant activity and competitive conditions, particularly in the detached and apartment segments. Edmonton’s market also demonstrates strong growth but stands out for its balanced market dynamics, with healthy increases in listings and sales, and moderate price appreciation.

Overall, Alberta's real estate market is thriving, with high demand driving continued price appreciation across the province.  To better understand your particular market, visit Bode.ca.

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