Calgary VS Edmonton

The battle of Alberta has taken on a new meaning this week…

I was chatting with “Calgary UP UP UP” the other day who posed this question: Why are prices for single family homes in Edmonton basically flat when we are seeing such high demand, and Calgary home prices have been on the rise all year?

I have to admit I don’t have a good answer for that question, so I asked Bob Truman who now has a discussion going on his blog on the same topic.
 
Why are Calgary home owners seeing their property values rise while Edmontonians are stuck in neutral?

The actual numbers:

Calgary single family homes:

Average Jan. 09 – $364k, Now – $413k

Median Jan. 09 – $375k, Now – $410k

Edmonton single family homes:

Average Jan. 09 – $361k, Now – $370k

Median Jan. 09 – $337k, Now – $346k

What do you think?

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11 Responses to “Calgary VS Edmonton”

  1. NickNo Gravatar 26. Nov, 2009 at 1:49 am #

    I think you have the Calgary averages backwards… Jan 09 should be 364 and Now should be 413, thats a 14% increase versus Edmonton’s 2% increase.

  2. BearClawNo Gravatar 26. Nov, 2009 at 7:36 am #

    It makes sense that Calgary is more expensive than Edmonton, because they have higher incomes and it is the business center of Alberta. I am not sure why the gap would continue to grow, good question. Maybe Edmonton has been hit harder by the recession than Calgary.

    What about Red Deer? After one of Garth’s posts on Red Deer I decided to take a look on MLS. From what I can tell it looks as though Red Deer is more expensive… Exception of course certain locations here like Garneau or Glenora.

  3. SpenceNo Gravatar 26. Nov, 2009 at 11:11 am #

    The air is thinner in Calgary. Less oxygen to the brain and well….there you have it. Ok, joking aside, Calgary is a bigger city with more cash flow period. It’s busier down there and, to be honest, anytime I’m there I can’t wait to leave. I am not originally from Edmonton, but I prefer it to Calgary. I say let them lead in this category. Let’s not try to mimic their insanity.

  4. buff_butlerNo Gravatar 26. Nov, 2009 at 1:50 pm #

    bearclaw nailed it,

    The ‘then’ had our cities at parody which doesn’t make sense. Their city has a 5% higher wage and higher population density. Their sales are also higher on a per capita basis for reasons that we can probably only speculate.

    Interesting find though.

  5. SpudNo Gravatar 26. Nov, 2009 at 2:49 pm #

    I have lived in Calgary and Edmonton and I must admit that I prefer Calgary (not a popular view on this blog I know). Proximity to the ski mountains was a big plus for me and also the type of jobs suited me more.

  6. bashNo Gravatar 26. Nov, 2009 at 9:17 pm #

    It will likely be different next year. I’m not sure why, but Calgary tends to be a good predictor for Edmonton by about a year.

  7. DocNo Gravatar 27. Nov, 2009 at 12:15 pm #

    There were more blue collar jobs lost in the recession ( thus Edmonton ) than white collar jobs ( Calgary ). There was more population outflow in Edmonton because these blue collar workers moved elsewhere ( blue collar types tend to live more work transient lifestyles). Calgary has a more stable workbase and Edmonton’s is transient…….that’s why as the White collar workbase stabilizes, Calgary prices start to stabilize and rise first, followed later by Edmonton as stability in Calgary trickles down to stability in Edmonton.

  8. Edmonton HomeBuildersNo Gravatar 28. Nov, 2009 at 12:19 am #

    I agree with you ‘Bash’and also with you ‘Spence’. With that being said and knowing what awaits ahead. Now is the perfect time to purchase a home in Edmonton while prices are still favorable.

  9. kNo Gravatar 28. Nov, 2009 at 9:51 am #

    Having lived in both cities, I actually think the prices between the two cities are comparable..anecdotally, I think Calgary homes are in much better condition-the supply of well renovated/ infill homes is greater in Calgary. In Edmonton, it seems people still want top dollar for their granny-specials, and the number of well renovated homes is very low.

  10. The Boom is overNo Gravatar 29. Nov, 2009 at 9:22 pm #

    Because it is Edmonton, one of the most Northern cities on the planet. Prices are still 50% overpriced considering the location. This is a very blue collar, typically not very affluent city. If you take away the temporary affluence that comes during a boom, you are left with a city with a very average at best economy for 95% of the time. Fort McMurray has always been booming, while Edmonton has been flat. There is no reason to believe that if there is a pickup in Fort McMurray that Edmonton should follow. In the past, it seldom has. The last 6 or 7 years of boom were an anomaly and most definitely not the norm. People will eventually begin to realize this, especially as government stimulus spending dries up and current construction activity left over from the boom period wraps up. Nobody can deny that there is a ton of commercial Real Estate clogging the system, practically every strip mall and every business park has for lease signs in front.
    Once these very heavily manipulated interest rates are left to find their own levels, you will see just how overpriced Alberta still is.

  11. SmokeyNo Gravatar 01. Dec, 2009 at 1:29 pm #

    This is based on nothing, but the thought process is that Edmonton lags behind Calgary in trends in real estate between eight months to a year. When the last boom happened (not saying this is one) Calgary took off first followed by Edmonton and the rest of the province.