The Alberta housing market has been a topic of keen interest for both residents and real estate enthusiasts alike. As we delve into the latest statistics and insights provided by Sagen, one of Canada’s prominent mortgage insurers, it becomes clear that the market is showcasing remarkable resilience and growth. With July 2023 marking a historic milestone and various economic sectors making their presence felt, let’s take a closer look at the current state of the Alberta housing market.
Record-Breaking July Sales: A Promising Sign
In what can only be described as a promising turn of events, the Alberta housing market witnessed remarkable improvements in year-over-year MLS sales for the month of July. According to data from Sagen, July 2023 was not only the best July on record but also indicated a broader trend of markets consistently outperforming expectations. Notably, both Calgary and Edmonton, two major cities within the province, experienced record-breaking sales during this period. This surge in sales activity speaks to the growing interest and demand for housing in Alberta.
Calgary’s Average Price and Pandemic High
A significant indicator of market health is the average price of homes. Sagen’s data reveals that despite the challenges posed by the pandemic, Calgary’s average housing price has managed to remain close to the peak it achieved in February 2022. Back then, the average price had reached an impressive 560K. This stability in pricing suggests that the housing market in Calgary has not only rebounded but is also demonstrating a sustained level of growth over time.
Supply and Demand Dynamics
One of the fundamental drivers of any housing market is the balance between supply and demand. Sagen’s insights shed light on the province’s inventory levels, with months of inventory serving as a crucial metric. In this regard, Alberta showcased a slight drop from 2.7 months to 2.6 months of inventory. This decrease indicates that the demand for housing continues to outpace the supply available, potentially exerting upward pressure on prices in the long run.
Economic Landscape’s Impact on Housing
The Alberta housing market doesn’t exist in isolation; it’s intricately linked to the province’s economic dynamics. The recent fluctuations in the provincial unemployment rate have garnered attention. Although experiencing a slight increase month-over-month, the overall context remains important. Sagen’s data also highlights shifts in various employment sectors. The professional, scientific, and technical services sectors, known for their high growth potential, experienced a cooling trend month-over-month, with a decline of around 5.5% from their peak in April 2023. Conversely, the mining, quarrying, and oil and gas extraction sector saw an increase in employment compared to the previous month, remaining slightly below the figures from the previous July.
Sectoral Employment Impacts
Several sectors within Alberta’s economy made noticeable moves in terms of employment. The construction and manufacturing sectors stood out with substantial gains, indicating potential economic vibrancy and development. On the other hand, the Transportation and Warehousing sector took a step back from its June high.
The Alberta housing market, as reflected in the insightful data provided by Sagen, paints a picture of resilience and growth. The record-breaking July sales, the stability of Calgary’s average housing price, and the delicate balance between supply and demand all suggest a market that is navigating its path with remarkable determination. While the province’s economic landscape does play a role in shaping this market, the housing sector’s performance signals optimism for both residents and potential investors. As the months progress, keeping an eye on these trends will provide valuable insights into the future trajectory of the Alberta housing market.