As Alberta’s population continues to boom, housing starts are working to keep up.
As of April 1, 2024, Alberta’s population was 4,849,906 and is expected to top 5 million by the end of this year. In the 12 months preceding our population grow by 204,677 people, or by 4.41%.
Housing starts trended upwards through the first five months of 2024, with residential permits in Alberta gaining momentum. In May, Alberta recorded 48,185 housing starts, a 32% increase compared to the same month last year. Since August 2023, housing starts have consistently exceeded 40,000 units each month. Year-to-date (YTD) housing starts have averaged 45,107 units, up 53% from the first five months of 2023. The biggest increases have been in both single-unit (plus-36%) and multi-unit (plus-60%) starts.
The last time Alberta experienced such sustained growth was during the 2007 housing boom.
Regionally, Edmonton has led the way with a 69% increase YTD, while Calgary has seen a 35% rise in starts. This makes Alberta’s housing market the busiest in Canada, accounting for about two-thirds of a national increase. Excluding Alberta, national starts saw just a 4.1% rise.
It’s a great time to sell your home
If you have been thinking of selling your home, now is a great time to move forward.
Resale home prices in Alberta continued upwards in May, the opposite of a national downturn reported elsewhere in Canada.
According to the latest figures from the Canada Real Estate Association, the benchmark price for a home in Alberta’s resale market in May was nearly 10% higher compared to the same time last year, in contrast to the national decline of 2.4%.
In Calgary, prices surged by 10% year-over-year, outpacing Edmonton’s 6.3% rise. Meanwhile, Canada’s largest market in the greater Toronto area experienced a 3.6% decline year-over-year. Vancouver saw a slight rise of 2.2% year-over-year.
Although the gap between the national benchmark price and Alberta’s benchmark remains substantial, it has narrowed over time. In May 2023, the national benchmark was $269,500 higher than Alberta’s. By May of the following year, that gap had reduced to $208,000.
But even with rising benchmark prices, Alberta continues to offer relative affordability compared to other regions. The MLS Home Price Index provides a consistent evaluation across different housing markets while considering various housing attributes and their changing values over time.
Home insurance considerations when selling
While your home is on the market, you need to keep your existing home insurance policy updated and active. It’s essential to review your policy to understand coverage specifics during the selling process. It is very common for policies to include provisions for vacant homes or extended periods without occupancy, so be sure to check what needs to be done to keep your coverage legitimate if you won’t be there when selling. Usually this just requires regular visits by someone you trust, and that person could very well be your real estate agent.
In Alberta’s hot real estate market homes are selling quickly, but you need to remember the “30-day rule” if you have already moved into your new home and your former home is vacant. All Alberta home insurance contracts include a clause that states your coverage ends once your property has been vacant for 30 days.
For you to retain partial insurance on your vacant house after 30 days, you will need to ask your insurance provider for a vacancy permit, which provides temporary insurance (often limited to an additional three months). The policy will be less comprehensive and not include coverage against acts of vandalism. Coverage with a vacancy permit is also more costly overall — sometimes up to double the amount of your regular premium. Insurance carriers are not required to grant a vacancy permit, and they base their decision on a variety of factors, including the location of the home, the duration of the vacancy, and your personal claim history.
Also remember that insurance considerations extend to disclosure requirements. Providing accurate information about the property’s condition and any insurance claims made will prevent future disputes with buyers.
Of course, once your home is sold, you can cancel your policy after the possession date. Remember that there may be a penalty for cancelling prior to your renewal period. You can choose to transfer your coverage to your new home or give our expert insurance brokers here at Lane’s a call. As brokers, we have access to a number of different policies from Canada’s top providers, which provides you with more choice, more flexibility, and often a lot more savings
What is title insurance?
Title insurance protects both buyers and sellers against financial loss from defects in the title or disputes over ownership rights. Sellers typically purchase title insurance to protect against claims that arise after the property is sold.
Most mortgage-holders are required to purchase title insurance when they buy their homes, so this should be included in your regular mortgage payment or as a one-time fee. It is worthwhile to check when selling, however. Title insurance ensures that the seller’s ownership rights are accurately conveyed to the buyer and will cover legal fees and potential losses if disputes over property ownership or title defects arise after your home has sold.
Trust Lane’s for all your Alberta insurance needs
The experienced brokers at Lane’s Insurance excel at educating customers, answering questions and explaining your coverage, so you know you have the best protection for you and your family. As brokers, we work for you, not the insurance companies, and will always do our best to ensure you get excellent possible coverage at the lowest possible rates.
Contact us at our Calgary, Edmonton, Banff, and Alberta offices today.
