Alberta’s Growing Real Estate Market

July 24, 2024

A Surge in Home Buyers and Home Safety Considerations

In recent times, Alberta has witnessed a remarkable surge in home buyers. The driving force behind this trend is the increasing difficulty in affording and finding rental properties. As rental costs escalate, more individuals and families are opting to invest in their own homes. But what evidence supports this claim?

According to the Alberta Housing Market Report for May 2024, several key indicators highlight the robust real estate market in the province:

Benchmark Home Price: Alberta’s benchmark home price reached an all-time high of $514,200, marking a 9.3% year-over-year increase. This surge reflects the strong demand for housing and limited inventory.
Average Home Prices: The average home price in Alberta rose by 8% over the past year, reaching $507,706. Notably, Red Deer experienced a staggering 22% year-over-year increase, with an average home price of $400,990
Rental Property: According to the Alberta Rental Report, the year-over-year increase for rental properties in the province has been significant in recent years. The report shows a consistent upward trend in rental costs, with an average year-over-year increase of 6-8% over the past few years. In the most recent data, the average rental price in Alberta has increased by 7.5% over the past year. Notably, in Red Deer, the average rental price experienced a substantial 10% year-over-year increase, reflecting the challenges in the rental market in that area.

Alberta’s rent prices surge due to population growth, economic conditions, and housing supply. According to recent Consumer Price Index data, rental prices in Alberta have inflated at a pace not seen in four decades. Home prices in Alberta have broken an all-time record for the fifth consecutive month, emphasizing the sustained growth in the housing market.

The high cost of housing and rent, coupled with surging population growth, has led to a situation where the number of homebuyers and renters vastly outpaces the available homes for sale or rent. As a result, both home prices and rents are likely to continue rising.

Home Safety Considerations Before You Buy

As rental costs escalate, more individuals and families are opting to invest in their own homes. The increasing difficulty in affording and finding rental properties contributes to Alberta’s surge in home buyers. As you embark on your home-buying journey, remember that safety plays an important role. Beyond aesthetics, consider the following safety factors.

Proximity to Fire Hydrants and Water Sources: Homes closer to fire hydrants tend to be considered safer in the eyes of insurers. Additionally, insurers may take into account the availability of nearby water sources, especially in rural areas where hydrants are scarce. Being near a water supply is often seen as a positive safety measure.
Distance from the Fire Department: Response time during a fire emergency depends on how far your home is from the nearest fire station.
Flood History: Standard home insurance policies do not cover damage from seepage or overland flooding. If the property has a history of flooding or is at risk, consider obtaining a separate insurance policy.
Prior Insurance Claims: Investigate whether the home has had previous insurance claims. Past claims by prior owners can influence your insurance rates. Insurers want assurance that any damage was adequately repaired.
Built-In Safety Features: Homes equipped with alarm systems that connect to central monitoring stations and those with built-in sprinklers may qualify for additional discounts on insurance costs.

When considering a new location, it’s essential to prioritize residing on a close or cul de sac rather than a busy street. Additionally, make sure to prioritize safety features such as conducting thorough inspections for items like fences, roofs, and windows to ensure a secure living environment.

Remember, insurance rates reflect both the insured value and the risk of loss. Prioritize safety when choosing your dream home, as your decision will impact your family’s well-being for years to come.

By considering safety alongside affordability and aesthetics, you’ll make an informed choice that ensures peace of mind and financial protection. Happy house hunting!