Moving to Small-Town Alberta? Follow These 3 Steps!

Moving to a small town in Alberta is a great way to find a home that fits your budget — if you know how to navigate the local market.

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By Brett Surbey | 4 minute read

Small-town charm isn’t just a cliche for many Canadians looking for an idyllic lifestyle.

While most Canadians live in urban areas, we may see more moving to small towns to escape higher housing costs.

According to Statistics Canada, over 74% of Canadians live in census metropolitan areas (CMAs) like Calgary, Toronto and Vancouver, however, more Canadians are choosing less populated areas in which to live. The same report states that the “population growth rate for areas outside CMAs and [census agglomerations] was at its highest in over 20 years and … 2022/2023 was the third consecutive year in which these regions grew faster than 1.0%.”

With rising housing costs, some have predicted that smaller towns outside of major Alberta cities (think Airdrie or Cochrane) could see an influx of city residents. That said, moving to a small town requires a solid understanding of the local housing market, which can sometimes be fierce. Here’s what you need to know before buying a home in small-town Alberta.

1. Get up-to-date on the market 

“It’s important when buyers are putting in an offer [to research the market] because sometimes there is very little on the market and they need to understand what homes are selling for,” says Sexsmith-based REALTOR® Daniel Cram. Cram, who works in areas including Grande Prairie, Sexsmith, Beaverlodge and Wemble, notes that buyers need to rely on their realtor’s local knowledge and expertise before putting in an offer on a home they like. 

“[Buyers] need to make a reasonable offer. If they don’t … someone else will grab it,” he says. Cram tells the story of a client who was looking at a million-dollar property and put in an offer $100,000 below list price. Their offer didn’t go through because it was well below what homes were selling for.

Cram also recommends buyers don’t make assumptions about smaller markets just because of overall provincial or national trends, noting his area as an example. “During COVID, in a lot of other areas of Alberta and around Canada, inventory got low, prices went super high, and we [Grande Prairie and area] didn’t experience that. We actually saw it the other way around. We saw things dip a bit, and lots of inventory went on the market [without] many sales happening. Now that people are moving here, the inventory is lower than we’ve ever seen.”

Cram also says that getting up to speed on a certain market doesn’t just mean knowing housing statistics or average home prices; it’s also about getting a sense of the neighbourhood and its characteristics. 

He advises buyers to ask their Realtor, “What do you think? What am I not seeing here? What’s the catch?’”

2. Be willing to compete

One interesting change Cram has seen in smaller markets over the past year is the introduction of escalation clauses in offers. In his practice, he’s advised some buyers to offer at list price and then include a provision stating they will automatically outbid new offers up to a certain amount. 

“You’re saying, ‘Hey, I’m willing to pay you list price, but if there are other offers, I’m willing to pay more, and this is how much I’m willing to pay,’” he explains, adding, “It’s been a really good strategy in getting a house.” 

Cram used this strategy recently with clients who had previously missed out on some opportunities due to buyer competition. After all was said and done, “they didn’t even end up paying over list price, because the other offer came in lower. They just paid the list price,” he says.

Cram also adds that buyers may need to adjust their expectations and, in some cases, be willing to overbid. “Sometimes you have to [prepare yourself and ask]: ‘How much are people paying over this price right now?’” They need to be prepared to match their area’s buyer sentiment if they want a certain property.

In his experience, if buyers are serious about getting a house in a smaller market, where there’s fewer options, it’s “less about an exact price and more about just getting a house.”

3. Don’t have a scarcity mindset

Buying a home is a complex experience, and advice on buying a home in a smaller market can be equally as complex. White being competitive with an escalation clause or being willing to overbid is important in a smaller market with less inventory, Cram reminds buyers that having a mindset of scarcity (believing resources are limited) can do more harm than good. 

“Sometimes in a busy market, it pays to be patient. You don’t have to buy the first thing that comes along. If it’s not the right [home], that’s OK,” he says. 

Cram views a successful realtor as someone who allows clients to move at their own pace instead of pressuring them to buy a home when it isn’t necessary. “The thing that helps me do a good job is I try to put myself in my customers’ shoes. I ask a lot of questions, try to find what they’re looking for and what’s going to meet their needs, and just be patient.”