Market Report Update!
Residential MLS sales numbers in central Alberta in January were exactly the same as December’s while the number of active listings was up 6.5% on Feb. 1 compared to Jan. 1/24. The population of Alberta grew by almost 200,000 people in 2023 while our active listing count for central Alberta is the lowest it’s been since the 1980’s by more than half. Over the last ten years, the average central Alberta active listing count in February has been 2,000 – 2,300 compared to 926 this month.
Sales in central Alberta have been very steady over the past few months in spite of the severe shortage of listings and we expect that trend to continue going into the spring. New construction is up somewhat, adding new inventory to the market, but anticipated lower interest rates will almost surely drive even more demand going into the spring, offsetting any gains.
The Alberta economy is forecasted to lead the country again in 2024, attracting more migration and exacerbating the demand for a dwindling supply of available homes for purchase. Demand is strongest in Calgary which has experienced double digit inflation in house prices. The large price differential between central Alberta and the Calgary and area markets will likely encourage a migration to our lower prices, which will just put more pressure on our prices. There doesn’t seem to be an end to the current situation in sight.