Airdrie home prices see another surge; sellers have upper-hand

Airdrie saw an annual five percent rise in the benchmark price for a single detached home in the city in December 2023.

According to the Calgary Real Estate Board's (CREB), monthly real estate market report, while there was a decline in sales by 24 percent, prices have continued to climb. The decline has been primarily driven by low inventory levels which has in turn limited new listings.

"For the third year in a row, conditions in Airdrie have generally favoured the seller. This has driven further price gains this year, albeit at a slower pace," the report stated. "This year, the price growth for row and apartment-style properties has been more than double that reported in the detached and semi-detached sectors."

As of December 2023, the benchmark price for a home in Airdrie was $521,800, while the average home price was $498,405.

"The decline in sales and new listings ensured inventories remained low this year, declining over last year’s and falling to the lowest annual average levels seen since 2006.

In comparison to the Calgary regional market, Airdrie is one of the more affordable places. 

Although the benchmark price of a home in Airdrie is well over half-a-million dollars, it is still more affordable than other regions in the greater Calgary area. (Graphic credit to Calgary Real Estate Board (CREB))

Airdrie's neighbours to the West in Cochrane have also experienced a decrease in both sales and listings.

"While inventory levels have improved over the low levels reported last year, they remain over 40 per cent below what we traditionally see in the market. The recent shifts in new listings relative to sales have helped the months of supply stay above two months since September. The detached benchmark prices increased by four per cent in 2023 over last year."

While Calgary continues to dominate the market in real estate, Airdrie had a fair share of sales as well. (Graphic credit to Calgary Real Estate Board (CREB))

Calgary's real estate market continues to be driven by strong migration into the province. 

"Housing demand remained relatively strong, especially for affordable options in our market,” said CREB Chief Economist Ann-Marie Lurie. “At the same time, supply levels were low compared to the demand throughout the year, resulting in stronger than expected price growth.”

In a November 2023 forecast, CREB stated that in 2024, it is expected that the high-interest rates and continued high inflation will factor into the real estate market.

"While economic growth is expected to slow, Alberta benefits from higher commodity prices and strong international and interprovincial migration. This will help offset the impact on the economy and our housing market. While migration levels are expected to slow in 2024, levels are still likely to remain relatively strong, providing fundamental support for housing demand."

However, CREB underlined that there are several risk factors including an overall slowdown in the global economy, which could impact employment; coupled with continued migration.

"Should migration levels remain relatively strong, especially from interprovincial sources, we will likely continue to experience challenges with housing supply, limiting sales due to a lack of options and causing stronger-than-expected upward pressure on home prices."

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