A message from Rob Roach at ATB Economics:
When it comes to increases in resale home prices, Edmonton led all six of Canada's metro areas of over one million residents with the price of a benchmark home up by 7.8% in December on a year-over-year basis. Montreal was second on the list at +7.2%, followed by Calgary at +4.4%. Toronto posted the lowest growth at just 0.3%, but it was not much higher in Vancouver at +0.5%.
Nonetheless, there is still a massive price gap between the benchmark price in Edmonton and Calgary on the one hand and more expensive markets like Toronto and Vancouver on the other. This gives the Alberta markets a significant cost advantage and helps explain the strong net inflow of residents from B.C. and Ontario into Alberta as Canadians chase affordability. The Alberta benchmark price was $516,200 in December compared to $723,600 nationally.
Edmonton remains a less expensive market than Calgary, with benchmark prices $180,000 lower. But the gap has been getting narrower in recent months after hitting a record high in May last year. As we've explored before, Edmonton's affordability advantage over Calgary helps explain its faster price growth as buyers seek out less expensive markets.
Although new construction is expected to remain robust and population growth to slow, tight supply and ongoing gains from interprovincial migration will keep upward pressure on resale home prices in Alberta in 2025.
Learn more in this edition of The Twenty-Four.
For more number-crunching on Alberta's economy, visit The Twenty-Four Seven by ATB.