Alberta has been experiencing some interesting trends, including its recreational property boom and strong markets early in the year. From a quarterly perspective, the Alberta real estate market in the first quarter of 2024 saw a general increase in sales and average prices.
Sales
Starting with sales, there was a 4.2% increase quarter-over-quarter in the first quarter of 2024, and a significant 31.0% rise year-over-year, reflecting a strong demand for properties within the region. Population growth will have at least partially contributed to this.
Listings
Meanwhile, the number of listings dropped. New listings experienced a quarter-over-quarter decline of 12.3% in Q1 2024, although there was still a slight rise of 4.7% year-over-year.
Active listings overall also decreased, dropping by 10.2% quarter-over-quarter and 17.0% year-over-year, showing a decreasing supply of available properties, which could lead to more competition among buyers.
Months of Inventory
In relation, the months of inventory decreased from 2.6 to 2.3, indicating a tightening supply-demand balance within the market, and reflecting the trends of sales increasing while new and active listings decreased.
Sales-To-New Listings Ratio
Additionally, the sales-to-new listings ratio surged from 70.1% in the fourth quarter of 2023 to 86.2% in the first quarter of 2024, signaling a heightened level of market activity and a stronger seller’s market.
Prices
Average house prices continued to rise, with a 1.9% increase quarter-over-quarter in Q1 2024, and a notable 9.9% surge year-over-year. This upward trend in prices reflects the demand overtaking the available supply, with fewer listings.
Under-Construction
The under-construction segment of Alberta’s market saw a slight decrease of 0.7% quarter-over-quarter in Q1 2024. However, there was a larger 9.4% increase year-over-year as a counter.
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Other Economic Indicators
Unemployment Rate
Transitioning to the economic landscape, the unemployment rate remained unchanged at 6.3% from the previous quarter, indicating a stable labour market environment.
Mortgage Arrears
Signs of household financial strain show in the percentages of mortgage arrears. There was a slight rise from 0.32% in Q4 2023 to 0.33% in Q1 2024.
Population
Population growth remained positive, albeit at a slower rate compared to other metrics, with a 0.9% increase quarter-over-quarter in Q1 2024, with a greater 4.4% increase year-over-year.