Buying a house in Alberta these days is no small feat. If you’re considering a home purchase in any one of the many real estate markets across Alberta, you should get familiar with the average cost of homes first.
Let’s take a closer look at what home prices are doing in Alberta these days to help you make a more informed buying decision when purchasing a home.
Key Points You Should Know
- The average house price in Alberta is $446,919.
- The average house price in Alberta is higher than most cities in Alberta including Edmonton.
What Is The Average House Price In Alberta
The average price for a home in Alberta is $446,919. That’s a 5.9% increase from the same month last year.
However, the average house price in Alberta will vary from city to city. The following are some of the most expensive centres in Alberta to buy a house:
- Calgary – $554,500
- Fort McMurray – $349,647
- Grand Prairie – $306,781
- Edmonton* – $370,500
- Lethbridge – $348,282
Average House Price In Alberta 2024
|Home Prices 2024
|Year-Over-Year % Change
|Prince Edward Island
|Newfoundland and Labrador*
Source: CREA Price Map (November 2023)
*based on MLS HPI benchmark price
What Affects The Average House Price In Alberta?
Many factors affect the average house price in Alberta, including:
When it comes to housing prices, location plays a key role. Several things go into making a location desirable, such as proximity to employment, quality of schools, crime rate, local amenities, and proximity to roadways and public transit.
No matter what condition your home is in or the type of lot it sits on, the temperature of the local housing market will have a big impact on a home’s value. More specifically, the supply of homes in the area and the demand among buyers will determine how much a home will sell for. If there are few homes available in the market, for instance, and many buyers on the prowl for a home, prices will be higher.
Can A Home Renovation Increase Your House Value?
Certain home renovations can add a lot of value to a home, especially if they drastically improve the condition and appeal of the property.
How Can You Find Out The True Value Of A House In Alberta?
One of the best ways to determine the current value of a home is to find out what similar homes in the area recently sold for. Known as “comps,” these comparable properties are typically referred to when real estate professionals establish listing prices for homes they sell.
Ideally, the properties assessed should be very similar to the subject home, be located within the same neighbourhood, and have sold no further back than 3 months to get an accurate idea of what a home is worth in today’s market.
Can You Afford An Average Priced House In Alberta?
For most Canadians, the price of a home must fit within their budget. Before you start searching for a new home, you’ll need to figure out how much you can afford for a home purchase.
Most financial experts agree that no more than 30% to 39% of your gross monthly income should be spent on housing expenses.
This is referred to as your gross debt service ratio, which includes the mortgage principal, interest, taxes, and your condo fees, if applicable. A lower GDS is better, as it will leave you with more of a financial cushion when all bills are paid and will satisfy the requirements of your mortgage lender.
Don’t Forget To Calculate Your Total Debt Service Ratio (TDS)
At the same time, you should not spend any more than 44% on total debt. This is referred to as your total debt service ratio and includes things like credit cards, car loans, student loans, personal loans, and your mortgage. Again, the lower your TDS, the better.
Staying close to these recommended ratios will ensure that you can comfortably afford a mortgage and avoid becoming “house poor.” The last thing you want is to get stuck with a long-term mortgage that’s too much for your budget to handle, even if a mortgage lender is willing to approve you for it.
Calculate All Costs Of Owning A Home
Owning and operating a home comes with a list of costs that you’ll need to cover every month. It’s important to understand what these are and how much they’ll cost you. Here are some common expenses associated with owning a home:
Most likely, you’ve got a mortgage on your home, and if you do, your lender will insist that a home insurance policy is taken out on it. Even if your lender does not require home insurance as part of the deal, it would still be wise to have a policy in place anyway, as it can provide you with financial compensation if your home is ever damaged or broken into.
The fee you pay for property taxes will depend on your home’s location and value. Every jurisdiction has property tax rates, which are multiplied by the value of your home to give you the annual fee that you’ll have to pay.
In Calgary, the residential property tax rate for 2023 is 0.0065718%. If your home is currently worth $500,000, for example, your annual property taxes would be $3,285.90
To keep your home comfortable and convenient, you’ll need things like running water, heat, and electricity, among other things. All the utility companies that service your home need to be paid so you can continue getting uninterrupted service.
Your home will need some upkeep to maintain its condition, which costs money. Failure to maintain your home could impact its value. You may also violate your insurance policy if you don’t maintain your home.
Things break down, and when they do, they’ll need to be repaired or replaced. Things like your appliances, HVAC system, roof, windows, faucets, and other components will require attention at some point to keep them functioning the way they should. But repairs can be costly, so you should budget for them accordingly.
Need help to finance your home renovations? Check out these home renovation loans.
One of the great things about living in a condo is that much of the maintenance and repair work that may be required is taken care of by property management. But there’s a fee to enjoy maintenance-free living that is covered by monthly condo fees.
Buying a home in Alberta may be a bit more affordable than in other provinces across Canada, but it’s still not cheap. A home purchase requires careful consideration and a hard look at your finances and what you can afford. Be sure to crunch the numbers to assess your current financial situation to help you determine what you can comfortably afford to spend on a home in any one of Alberta’s beautiful cities.
Average House Price In Alberta FAQs
Does the condition of your home affect your home value?
What are some common expenses of owning a home in Alberta?
- Property taxes
- Home repairs and maintenance
- Home insurance