Tale of two cities: Comparing markets in Edmonton, Calgary
Demand has increased for new and resale single-family homes in both Edmonton and Calgary this year compared to 2016, although Alberta’s capital city trails its southern rival in a number of recent housing figures. Here are some comparisons of activity:
1
Both centres have seen a busier period for new construction of single-family homes in 2017 compared to the same time a year ago, with a slight edge in growth going to the Calgary area. Eight months into 2017, shovels were in the ground for 2,834 of these homes in the Calgary census metropolitan area, rising 25 per cent year over year, says Canada Mortgage and Housing Corp. (CMHC). At the same time, the 3,350 starts in the Edmonton census metropolitan area was a 22 per cent lift from a year ago.
2
People looking for an immediate possession single-family home had 34 more options to pick from in Calgary than in Edmonton last month. In August — the most current data available — there were 434 constructed and unabsorbed single-family homes in the Calgary area, up from 341 a year ago. In the Edmonton area, inventory of new single-family homes slipped to 400 from 429 year over year.
3
The average cost of single-family homes absorbed last month was more than $36,000 higher in the Calgary area than the Edmonton area, says CMHC. In Calgary, the average was $681,500, jumping from $645,231 in August 2016. Edmonton’s average increased to $604,262 from $586,838 year over year.
4
For resale of single-family homes between Jan. 1 and the end of August, Calgary outpaced Edmonton by 636 transactions. There were 8,523 single-family homes sold through Calgary’s resale market, up from 7,887 during the same time in 2016, says the Calgary Real Estate Board (CREB). In Edmonton, sales improved to 7,206 deals from 7,151 year over year, says the Edmonton Real Estate Board.
5
While new resale listings of single-family homes slipped in Edmonton, they ramped up in Calgary compared to 2016. Through eight months in 2017, there were 12,914 additions to the Edmonton market, down from 12,978 year over year. Meanwhile, Calgary posted 13,950 new listings, a 4.5 per cent hike from 13,349 a year ago.