Moving to Alberta? Home Prices Guide

One important thing to plan for before moving from Toronto to Calgary with movers is the cost of buying a home, as you’ll need at least CAD 400,000+ to get a good home in the province. Let's take Alberta as an example. According to a report published by Statista in February 2024, the average house price in Alberta is projected to reach CAD 520,837 (equal to $379,896) by 2025. However, while home prices are below the national average, buying a house in other areas of the province is expensive. 

Key Highlights to Note

• According to WOWA’s Alberta housing market overview data for February 2024, home sales activities have increased, with around 5,835 homes sold.

• Urban cities like Edmonton have higher house prices than rural areas in the province.

• Houses worth under $500,000 require a minimum downpayment of 5%. 

• Alberta's housing demand is higher than the supply, with the provincial SNLR (Sales-to-New-Listings Ratio) at 72% in February 2024. This has resulted in high home-buying prices and less buying power. 

• When building a brand new home in Alberta, you should expect to pay a mandatory new home warranty fee of around $2,000.

The Average House Price in Alberta

The average house price in Alberta is CAD 450,704, but prices vary depending on the city and the type of home, as shown below. 

House prices in Alberta in 2024 based on city: 

House prices in Alberta in 2024 based on the type of house:

Factors Influencing the Average Cost of Houses in Alberta

1. House Improvements 

Major improvements meant to increase a home’s value, such as foundation repairs costing from $400 to $11,000+ and roof repairs costing an average of $500+, may lead to an increase in the average price of the property.

2. Demand and Supply

If there are few homes in the province and the number of people looking to buy houses is high, the prices will definitely be high. This means if the sales-to-new-listings ratio is above 60% (which is the case in Alberta), there are more buyers than homes available for sale, unlike when the SNLR is less than 40%. 

3. Location of a House

Houses located near public transport, top-notch schools, amenities, and places of work are expected to cost more compared to others. Additionally, properties located in areas like Calgary and Edmonton have high costs. For instance, the average prices of houses in Edmonton are projected to reach $458,000 (a 6.5% increase) by the end of 2024.

4. Growing Economy

Alberta’s economy is currently doing well, with an unemployment rate of  6.3% as of March 2024. As a result, the real estate industry is growing, and the housing sector is positively impacted by an increase in demand. 

How to Afford the Average House Prices in Alberta

Affording the average cost of houses in Alberta requires thorough planning, budgeting, and seeking guidance from financial experts. You will have to calculate how much you need to own a home in the province and understand the additional costs of purchasing one. 

Some of the extra costs include:

• House maintenance and renovation. Repairs for things like HVAC systems and faucets will cost extra money (approximately $150 to $7000+); otherwise, failure to maintain your home will result in a decline in property value.

• Utilities. Your home needs essential things like electricity and water to run smoothly. However, these utilities require extra spending of about $200+ per month.

• Property taxes. The approximate annual property tax in Alberta is $3,286 for homes valued at $500,000, while the average residential property tax rate is about 0.657180%.

• Home insurance. You will spend around $153 per month for compensation purposes in case your home gets broken into or damaged.

Bottom Line

Moving to Alberta requires a good understanding of the housing market: the prices, how much you will need and what you can afford, factors affecting the average house prices, the location of the property, and the extra costs needed. Once you figure these out, you can relocate and live comfortably in Alberta.

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