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Alberta Real Estate Market Update – September 2025

Updated: Sep 17

Updated: September 17


The Alberta housing market is entering a new phase this fall. After several years of strong seller-driven conditions, the balance is shifting as more inventory comes to market, sales moderate, and prices in some categories soften. For buyers, this means more choice and negotiating power; for sellers, it requires sharper pricing and marketing; and for investors, it’s a reminder to focus on fundamentals, rental demand, and long-term growth. This update brings you the latest facts and insights—straightforward, unbiased, and practical—so you can make informed real estate decisions anywhere in Alberta.


A couple stands arm-in-arm looking at modern Alberta homes on a sunny day, with the text “Alberta 2025 Real Estate | Growth | Opportunity” and the Alberta flag in view — highlighting Alberta real estate market optimism.

Alberta Real Estate Market Update: Provincial Trends at a Glance

Looking across the province, this Alberta Real Estate Market Update shows sales slowing while inventory continues to rise.


Province-wide (Aug 2025):

  • Sales: 6,843 (-7% YoY)

  • New listings: 10,811 (+4% YoY)

  • Inventory: 20,856 (+16% YoY)

  • Sales-to-new-listings (SNLR): 63% (balanced)

  • Months of supply: 3.05 (+25% YoY)

  • Average price: $502,684 (+2% YoY)


City & Regional Snapshot (Aug 2025)

City/Region

Avg Price (YoY)

Months of Supply (YoY)

Quick read

Calgary

$612,349 (+1%)

3.35 (+63%)

Sales down 9% YoY; inventory up sharply; balance returning. albertarealtor.ca

Edmonton

$425,685 (+5%)

2.83 (+23%)

Cooling into fall; more options for buyers vs. last year.

Red Deer

$413,129 (+7%)

1.90 (+32%)

Still tight; well-priced listings move.

Lethbridge

$435,599 (+11%)

1.77 (-5%)

One of the tightest markets in AB.

Medicine Hat

$375,639 (+10%)

1.26 (-23%)

Tightest supply in the province.

Grande Prairie

$379,317 (+11%)

1.21 (-24%)

Very tight; high SNLR.

Fort McMurray (Wood Buffalo)

$378,409 (+5%)

3.93 (-23%)

More balanced; sensitive to energy cycle.


By property type (Alberta, Aug 2025): Detached $581,964 (flat YoY), Semi-detached $498,385 (+3%), Row $370,672 (-2%), Apartment $279,292 (-2%). Inventory and months of supply are highest in apartments/rows, consistent with price softness in higher-density segments.


“The Alberta housing market is showing remarkable stability and growth for 2025,” notes real estate analyst Michael Roberts, pointing out that lower entry-prices continue to draw first-time buyers and investors.


Market Drivers and Expert Insights


1) Rates down; stress test still binding

  • BoC cut today to 2.50%, restarting the easing cycle; lenders will gradually pass through lower rates.

  • But buyers must still qualify at the greater of 5.25% or contract +2% (uninsured), with a renewal-switch carve-out introduced late 2024. Translation: even with lower advertised rates, qualifying remains a hurdle.


2) Migration supports demand

Alberta continues to post the largest net interprovincial gains in Canada (2024 annual), and Q1-2025 marked an 11th straight quarter of net inflows—slower than 2023 but still positive. This underpins housing demand across Calgary/Edmonton and value markets like Lethbridge, Medicine Hat, and Grande Prairie.


3) Supply normalization

AREA reports rising inventory and months of supply province-wide, with tightest conditions in Medicine Hat, Grande Prairie, and Lethbridge. Expect more balanced negotiations this fall.


4) Local policy & closing costs

Alberta does not levy a provincial land transfer tax; buyers pay land title and mortgage registration fees instead, which are materially lower than LTTs in many provinces (fees updated Oct 20, 2024). This is a structural affordability advantage.


What This Means


For Buyers

  • More leverage in many markets; don’t skip conditionals that protect you (financing, inspection).

  • Watch the math: even as rates slip, the stress-test bar can cap your budget. Get pre-approved with scenarios at contract rate and contract +2%.

  • Hunt value in segments with more supply (many condos/rows) and in satellite municipalities.


For Sellers

  • Price to the market you’re in (not last spring). Overpricing stalls showings when buyers have options.

  • Presentation converts: clean inspections, accurate measurements, strong visuals, and neighbourhood data move the needle.

  • Time on market may stretch; plan your next purchase/financing with that in mind.


For Investors

  • Tight markets = rental tailwind (Medicine Hat, Grande Prairie, Lethbridge).

  • Underwrite with higher cap-ex and conservative rent growth, and test refinancing at MQR to avoid surprises.

  • In Calgary/Edmonton, sub-market selection (near jobs, transit, schools) matters more than ever.


Outlook: Fall & Early Winter 2025

  • Province-wide conditions lean balanced, with detached holding up better than higher-density types.

  • If rate cuts persist, pent-up demand could firm activity late fall—tempered by the stress test and still-rising inventories.

  • Nationally, sales momentum improved into August (best August since 2021), but the HPI is still down YoY—context for Alberta sellers setting expectations.


Wherever you’re buying, selling, or investing in Alberta, the local picture decides outcomes. Connect with a top-rated real estate agent or other vetted pros (mortgage, inspection, appraisal, legal) in your area via Pro Search to plan your next step with confidence.


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