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Home prices continue to rise in Alberta

By Rob Roach, ATB Economics 17 January 2024 1 min read

The benchmark* price of homes on the resale market continues to buck the national trend in Alberta.

According to the Canadian Real Estate Association, the seasonally-adjusted national benchmark price fell by 0.8% in December, marking the fourth monthly pullback in a row.

It has been a different story in Alberta, with the benchmark price rising for the 13th month in a row in December, albeit by a rather modest +0.3%.

The national benchmark, however, remained much higher than in Alberta at $730,400 versus $495,200.

Both Calgary and Edmonton have seen their benchmark prices rise in recent months while they have been falling in the more expensive markets of Vancouver and Toronto (see chart).

Calgary’s benchmark price reached $568,000 in December (up 0.3% from November) compared to $380,400 in Edmonton (up 0.6% on the month).

Relatively stronger population growth helps explain the upward trend in Alberta.

Taking a look at the annual averages, the national benchmark price in 2023 was 5.9% ($46,142) lower than in 2022 compared to a 3.0% ($13,900) rise in Alberta.

Despite the recent upward monthly trend in Edmonton, the average benchmark price was $16,208 lower in 2023 than in 2022 (-4.2%). In Calgary, the annual average was $29,333 higher in 2023 (+5.7%).

Tighter supply and what will likely prove to be somewhat stronger population growth in Calgary last year (we should be getting updated population growth estimates at the metro level from Statistics Canada soon) are contributing to the larger price gains in Calgary.

*The MLS® Home Price Index (HPI) model is used to calculate benchmark prices in key Canadian markets. A “benchmark home” is one whose attributes are typical of homes traded in the area where it is located and includes single family homes, townhouse/row units and apartment units.

Answer to the previous trivia question: The Bureau of Labor Statistics is the official tracker of consumer inflation in the United States.

Today’s trivia question: In what year was the song “Our House” by the English band Madness released?

Benchmark resale home prices have been on the rise in Alberta in recent months

Benchmark resale home prices have been on the rise in Alberta in recent months

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