One of Canada's largest banks released an Economic Outlook on Novmeber 29, stating that Alberta's housing market is one of the most affordable in Canada.  I have copied a portion of the article below and you can read the remaining by clicking on the link: ALBERTA’S HOUSING AMONG THE MOST AFFORDABLE IN CANADA: RBC ECONOMICS

TORONTO, November 29, 2010 — Despite recording substantial affordability
improvements since early 2008, housing demand in Alberta is still a shadow of its
former self from just a few years ago and there are few signs that it is picking up
meaningfully, according to the Housing Trends and Affordability report released today by RBC Economics Research.

“Alberta’s housing market conditions remained quite weak in the third quarter and
buyers have clearly emerged in the driver’s seat, causing home prices to decline and
contributing to further improvement affordability,” said Robert Hogue, senior economist, RBC. “Homeownership in the province is among the more affordable in Canada in absolute terms and relative to historical averages which bodes well for housing demand once the provincial job market improves.”

The RBC report notes that housing affordability in the province improved in the
third quarter of 2010 with home prices declining between 0.6 per cent and 2.2
percentage points depending on the housing type.

The RBC Housing Affordability Measures for Alberta, which capture the province’s proportion of pre-tax household income needed to service the costs of owning a home, eased across all housing categories in the third quarter, more than reversing modest rises in the second quarter of 2010. The measure for the benchmark detached bungalow moved down to 32.5 per cent (a drop of 1.8 percentage points from the previous quarter), the standard condominium to 20.7 per cent (down 0.8 percentage points) and the standard two-storey home to 35.6 per cent (down 1.8 percentage points).

The RBC report notes that Calgary’s weak housing demand mirrors the city’s
sluggish job market where employment during the last year was stagnant at best.
Meanwhile, the supply of homes for sale continues to be plentiful maintaining the
downward pressure on property values. Calgary home prices fell across all housing
categories in the third quarter contributing to further improvements in affordability.
RBC’s affordability measures declined by 1.2 to 2.3 percentage points, representing the third consecutive drop for two-storey homes and condominiums.

“The good news is that the Calgary market is no longer running in reverse;
however, the bad news is that it appears to be running in low gear,” added Hogue.
“Despite relatively affordable homeownership in Calgary, only modest improvements in home resales have recently occurred with levels moving up to those witnessed 10 years ago.” .... Article Continued . 

Other articles released by RBC can be viewed by clicking on the links below:

Canada's Homeownership Affordability improves for the First Time in over a year: RBC Economics

Full RBC Housing Trends and Affordability Report - includes charts & graphs