Alberta Housing Markets Surge: Red Deer and Medicine Hat Lead

Housing markets in Alberta have shown significant variations, with certain cities witnessing sharp increases in the prices of detached homes. According to the latest statistics released in October 2025 by the Alberta Real Estate Association (AREA), Red Deer and Medicine Hat have emerged as the most in-demand locations for home buyers, both experiencing year-over-year price surges.

In Red Deer, the average price of a detached home has jumped by 15 percent, reaching $495,947. Meanwhile, Medicine Hat has recorded an 11 percent increase, with average prices now at $430,968. These impressive figures highlight a vibrant real estate market in these cities, which have surprised many with their rapid growth.

Other Cities in Alberta Show Varied Trends

While Red Deer and Medicine Hat lead the way, other cities in Alberta are also seeing fluctuations in housing prices. Grande Prairie saw an 8 percent increase, bringing the average price to $410,655. Lethbridge, on the other hand, experienced a modest rise of 3 percent, settling at $450,187.

In contrast, Calgary reported no increase, maintaining an average price of $697,000. Edmonton faced a price decline of 2 percent, with the average now at $539,301. Fort McMurray experienced the most significant drop among major cities, with prices falling by 4 percent to an average of $450,254.

The overall market in Alberta has shown signs of cooling, with a notable 10.4 percent year-over-year drop in sales for October. This decline marks the seventh consecutive month of decreased sales, particularly affecting row housing and apartments. Conversely, new listings increased by 9.6 percent, contributing to a rise in inventory, which is up 22.5 percent compared to the previous year.

Supply Dynamics in Alberta’s Housing Market

The sales-to-new listings ratio has slightly improved to 64 percent, with the province recording 3.21 months of supply in October, an increase of 36.7 percent year-over-year. Calgary, Fort McMurray, and Edmonton are experiencing a loosening of supply conditions, while Grande Prairie and Medicine Hat continue to face tighter markets, both offering less than 2 months of supply. Specifically, Medicine Hat has 1.39 months of supply, while Grande Prairie reports 1.54 months.

As the real estate landscape continues to evolve, prospective buyers may find various options available across Alberta. For those interested in unique properties, there are listings including a nearly 50-year-old mansion near a major road in Edmonton and a stunning $3.5 million home near Calgary that boasts contemporary designs. Additionally, a $1 million Japanese-inspired home nestled in a forest in Edmonton presents further possibilities.

For more detailed insights, the full report from the Alberta Real Estate Association is available online, providing a comprehensive overview of the current housing trends across the province.