It seems counterintuitive: more homes are sitting on the market, fewer people are closing deals – yet benchmark home prices in Alberta are still holding strong (and in some areas, even rising).
What’s behind this paradox? In this article, we dive into local data, expert voices, and real stories to explain why Alberta home prices are rising even as sales stagnate.
Alberta Market Snapshot
Average home price (all property types, Alberta): ~$503,123 (+1.9% YoY)
Total home sales: ~7,644 (-4.4% YoY)
New listings: ~12,049 (+9.0% YoY)
Active inventory: ~21,099 (+17.0% YoY)
Sales-to-New-Listings Ratio (SNLR): ~63%
(Source: WOWA.ca)
These numbers show a few key trends:
- Sales are down (fewer transactions)
- New listings and inventory are up
- Despite more supply, prices haven’t collapsed – some segments remain resilient
The Paradox Explained: Why Prices Haven’t Dropped
Here are the biggest reasons why prices remain firm even as sales stagnate.
1. Strong fundamentals in certain segments
Not all property types behave the same.
Detached and semi-detached homes are showing more price resilience than apartments and row houses.
In Calgary, for instance, CREB reports that apartment and row-style properties are seeing the most price declines, while detached homes have held steady.
(Source: CREB.com)
2. Location and quality premium
Well-located homes in established neighborhoods or those with upgrades continue to attract strong buyer interest.
People are being more selective, so “better” homes keep value, while others feel more pressure.
3. Limited new construction
Builders continue to face rising costs, labour shortages, and slower permit approvals.
That means fewer new homes entering the market, which supports resale values.
4. Mortgage and financing dynamics
Although rates are higher than before, many buyers who are active now are financially strong or locked in at lower rates.
They’re focused on quality over quantity, pushing prices up for desirable properties.
5. Investor and cash buyer activity
Investors and downsizers with equity remain active in the market, less affected by high interest rates.
This keeps competition alive in key areas.
6. Seller psychology
Sellers are hesitant to drop prices too low. Many would rather wait it out than accept steep discounts, creating a “sticky” floor that prevents a larger drop.
Risks and Red Flags
Even though prices have stayed firm, there are risks to watch:
- Inventory is climbing fast, which could pressure prices later in the year
- Higher mortgage rates may reduce affordability even further
- Job market shifts or weaker oil demand could affect buyer confidence
- More new construction could eventually compete with resale homes
What This Means for Buyers and Sellers
For Buyers
- The market is shifting in your favor, especially in mid-tier homes and certain areas
- Still, desirable properties sell quickly – be ready to act
- Use the slowdown to negotiate better terms
For Sellers
- Pricing is everything right now. Overpricing will result in longer days on market.
- Focus on presentation: clean, staged, and photo-ready homes stand out
- Expect more negotiation on closing terms
Final Thoughts
Alberta’s housing market is entering a new phase – one of balance rather than frenzy.
Sales may be slowing, but prices remain supported by tight supply in key segments, quality-demand gaps, and cautious seller behavior.
Whether you’re a buyer or seller, staying informed on local data and trends will be key through 2025.
References:
Canada Housing Market 
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