Mortgage and Real Estate Market Update


Gert Martens - Alberta Mortgage - Market Update

Experts have been saying that there are signs that home prices may be peaking in the Alberta area, with a fall in the price index for Edmonton and Calgary. In fact, the housing market across Canada is experiencing a continuation of cooling off from last month, while interest rates rose. Has the Alberta housing market reached its peak? Our expert Alberta mortgage broker team is here with the latest figures.


Alberta Housing Market – July 2022


While experts feel that the demand in housing inventory will stay high for now, areas like Edmonton have seen a sharp turnaround during the past 2 months from being a seller's market. The average sold price is currently $405K, which is down 1.3% from last month, down 2.5% from last quarter, and up 3% from this time last year.


The average selling price for detached homes is currently $497K, up 10% from June, while the average selling price for condominiums is down 7% at $227K. For the past 28 days, there have been 2,285 new listings, 1,837 homes sold, and homes are spending an average of 37 days on the market, with selling to listing price ratio of 99%.


In Calgary, the average sold price for July was $509K, down 1.5% from last month, down 4.8% from last quarter, and up 4.6% from last year at this time. The average selling price for detached homes is $531K, down 9% from last month. Townhome selling prices are $434K, up 11% from last month, and condos have an average selling price of $279K, up 8%.


Calgary's housing inventory for the past 28 days had 6,359 new listings, 2,759 homes sold, and homes spending an average of 11 days on the market at a 102% sale to list price ratio.


If we look at the whole of Canada over the past month, there were around 48,200 sales transactions, which is down 10% from last month, and down 24% from this time last year. Canada's average selling price is $666K, down 6% from last month and down 2% from this time last year.


Canada's Mortgage Market


We have seen mortgage rates rising quickly along with inflation rates, which are up 7.7%. With the Bank of Canada hiking rates and a rise in bond yields, we are seeing the cost of borrowing being pushed upwards. In July, we saw a rate hike of 1%, which caused a rise in prime rates, which is currently at 4.70%. We'll be feeling the impact of this for months to come.


For more information on current mortgage rates, give us a call at (780) 933-0109.


Outlook For Alberta's Housing Market


Right now, there are 5 things that are driving Alberta's housing market:


  • Core Demand (financing, savings rates, home price growth, and population growth)

  • Non-Core Demand (domestic investors, foreign capital, dark money, home flippers, and recreational owners)

  • Government (property taxes, transaction taxes, mortgage policies, and social housing)

  • Supply ( growth of housing stock, active listings, and development pre-sales)

  • Popular sentiment, which is volatile and can shift quickly, which we have seen in the past 2 years.


It will be interesting to see how the housing and mortgage market will be affected as we move into the cooler months, given the rise in the cost of living and gas prices rising. If you want more information on current mortgage rates, give our expert Alberta mortgage broker team a call today!


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