Average house prices have increased all across Canada, and that especially includes Airdrie’s housing market.

New data shows the average house price has increased by 21% in the past year. Terri Stephens, a CIR realtor in Airdrie talks about how this increase compares to Airdrie’s sales and numbers. 

“Right now, we're at least 105% over asking prices. I've seen houses in some communities in Airdrie list at 500,000, and sell over 600,000.” 

Stephens states people coming to Airdrie are taking advantage of its hot market. Similarly, to what the Canadian Real Estate Association (CREA) is saying, Stephens is noticing a lack of inventory of homes. 

“We have very limited inventory. It's the lowest I've seen in 19 years. And the prices are escalating. Even going back down to 2005 and 2006, where we had that correction when houses were listed at around $200,000, and then they went up to $400,000. We're now seeing that correction, but it's escalated tenfold.” 

Now looking at the market report summary in comparison to Calgary, the average benchmark price in Airdrie is $408,900, reporting that the annual change is up 17.1% from January 2021. Now looking at Calgary, their average benchmark price is $10,701, which is 8% higher compared to the previous year. 

CREA usually reports a slow start to the housing market in January, adding it’s unusual to see buyers and sellers so active. Stephens believes Airdrie is so hot right now because of low rates and the possibility for the escalation of the housing market. 

“The lowest rate I've seen right now is 1.3% on a variable. Whereas, say a few years ago, we were closer to three or 4%.” she also adds, “the market has shifted so much, where people are able to use some of the money they've saved up, and pay a heck of a lot less on their current mortgage when they buy something.” 

When comparing across the country, it’s best to look at the Multiple Listings Service House Price Index (HPI), to better gauge where Alberta sits amongst other provinces. 

Looking at the seasonally adjusted change in average housing prices in Alberta we have seen an increase of about 10%. Whereas, in places like New Brunswick and Ontario, they are seeing an average increase of around 25-30%. 

CREA noted the markets in Ontario and British Columbia are the biggest factors in the increase across Canada. Marking certain municipalities in both provinces clocked in 30% gains in the past year. 

With such increases Stephens says, there have been more reports of investors from out of province moving into places like the Prairies to get a better bang for their buck. 

“I think it's because they're thinking that our markets are going to continue to escalate. They can buy property, they can buy maybe two or three houses here in Alberta, or in Airdrie, versus say in Vancouver. They can then rent those houses out and still have a return on investment.” 

Stephens goes on to say the market is cyclical and things will start to level out one way or another. 

“I think if we finally see a little bit of an uptick in interest rates. The employment market might pick up for Albertans. I think then we'll start to see a little bit of a shift where we'll have that equilibrium against all other provinces in Canada.” 

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