The average sale price in the Edmonton housing market has increased by 7.7 per cent across all property types between 2023 and 2024 from $400,833 to $ 431,839. The number of sales transactions has also increased by 27.5 per cent during the same time period (from 19,799 home sales in 2023 to 25,252 home sales in 2024) and the total number of listings increased by 6.3 per cent (from 31,159 in 2023 to 33,109 in 2024).
Looking ahead to 2025, Edmonton will continue to be a seller’s market. Average residential sale price across all property types is anticipated to rise by 10 per cent, while the number of sales will likely increase by four per cent. The number of listings is expected to increase by three per cent next year.
First-time buyers are expected to drive market activity in 2025, while single detached houses are expected to see the most sales activity in the region, especially in the $350,000 – $450,000 price range. Move-up and move-over buyers are commonly looking for single-family homes in the $600,000 – $800,000 price range. Meanwhile, retirees are downsizing into condominiums and townhouses priced in the $150,000 – $400,000 range.
Heading into 2025, 30-year amortizations and rising rental rates will encourage first-time homebuyers to engage in the Edmonton real estate market. Consumer confidence is very high in the region.
New construction activity is currently falling short of demand, which is primarily being propelled by homebuyers from Ontario, followed by British Columbia. The region has also experienced an influx of buyers from Calgary who have been “priced out” and looking to Edmonton for an affordable way to enter or invest in the housing market.
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The Edmonton housing market has seen its average residential sale price rise by a healthy 7.4 per cent year-over-year across all property types, between January 1 and July 31 (from $409,986 in 2024 to $440,446 in 2024). The number of sales has also increased by a considerable 30.9 per cent for the same time period (from 13,713 sales in 2023 to 17,951 sales in 2024). The number of listings rose 6.9 per cent (from 22,241 in 2023 to 23,775 in 2024). Average sale prices across all property types are anticipated to increase by six per cent through the remainder of 2024, while the number of sales is likely to see a 15-per-cent bump. Edmonton is currently experiencing a seller’s market, conditions that are anticipated to persist this fall. There is not enough inventory to match buyer demand, and additional interest rates cuts will see new more buyers entering the market and putting additional strain on inventory levels. There are a number of factors contributing to Edmonton’s housing shortage. HIGH-DEMAND PRICE POINTS: The highest demand in the market right now is for single-family homes priced between $300,000 to $500,000, and condos under the $200,000 pricepoint. Luxury homes valued at more than $1 million is also in short supply. DWINDLING INTEREST IN OLDER HOMES: There is an oversupply of older, outdated homes sitting on the market, especially in the $500,000 to $999,000 price range. However, there is high demand from real estate investors and developers for properties where legal secondary basement suites can be added or available land for infill, albeit most of that demand is in the under $500,000 price point as well. NOT ENOUGH NEW CONSTRUCTION: Edmonton can’t build quickly enough to meet demand, due to a skilled labour shortage. Edmonton homebuyers are responding/adapting to the housing shortage with aggressive offer strategies, bully offers and escalation clauses. This is a direct result of many sellers looking to run a multiple offer process to get the highest and best offer, where it’s imperative to have a knowledgeable and experienced agent guiding you on both sides. INTEREST RATES: On September 4, the Bank of Canada will make its next interest rate announcement. This is expected to continue driving buyer demand and confidence. Inventory is already moving quickly, so additional interest rate cuts will likely add more buyers to the market as their purchasing power increases as rates drop. Homeowners who took a three- or five-year term fixed-rate low mortgage in the fall of 2020 and 2021 post pandemic market boom, are coming up for renewals this year and next, prompting selling considerations and impacting the market. MOVE-OVER BUYERS: Edmonton’s sales are primarily driven by Ontarians moving and investing in real estate. Local buyers typically lose in multiple-offer situations to Ontarians, and out-of-province buyers are open to investing in up-and-coming areas. In addition, Calgary’s market boom seems to have levelled off somewhat, and priced out some buyers. As a result, these buyers are now looking at Edmonton as an alternative.
Edmonton housing market to remain balanced in 2021, prices to increase 2%
Edmonton real estate is likely to continue as a balanced market in 2021, with demand being segmented. Buyers are looking for single-family homes and yards, which includes duplex and row-style townhomes. The average sales price in Edmonton increased by 1% to $364,820 in 2020 (Jan. 1 – Oct. 31), compared to $361,152 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for Edmonton real estate in 2021 is an increase of 2% in average price to approximately $372,116.40.
Who’s Driving Demand for Edmonton Real Estate?
Move-up buyers are currently driving demand in the Edmonton real estate market, which is expected to continue into 2021. The most popular property type among move-up buyers in Edmonton are single-detached homes and townhouses.
First-time homebuyers in Edmonton are typically single homebuyers. These buyers are not looking at one property type specifically and are buying across all property types. The average price spent on a property by a first-time homebuyer is approximately $300,000.It is expected to be more difficult to enter the market as a first-time homebuyer in 2021, as there is expected to be less inventory, making it tough for buyers to find the right property.
Move-up buyers in the Edmonton housing market are typically young couples. There has been very little hesitation in move-up buyers when it comes to entering the market, as many are trying to take advantage of the low interest rates and low property values. Move-up buyers in Edmonton have changed the criteria on what they look for in a home due to COVID-19. Many move-up buyers are looking for yards, more space, separate offices and finished basements.
The condominium market in Edmonton is most popular with single homebuyers and young couples. The average price for a condo in Edmonton is $222,181. Apartment-style condos are currently in oversupply, which means prices are likely to drop. Currently in Edmonton, many examples of large assessments have been seen, mostly due to insurance costs escalating dramatically for condo corporations, which has resulted in higher condo-fees.
Edmonton’s luxury market is currently driven by move-up buyers with the average starting price for a luxury home in Edmonton being $1,000,000. At this price point, many buyers are getting great value, with the majority of the homes being newer infill or older beautifully renovated homes with large yards in mature areas, or huge lots, often with ravine or private nature backing, in new development areas.
Edmonton’s Hottest Neighbourhoods
Edmonton’s top-selling neighbourhoods in 2020 were Anthony Henday Zone (West), North Central Zone and Southwest Zone. These neighbourhoods are expected to continue as the most popular neighbourhoods moving into 2021.
Edmonton New-Home Construction
Edmonton’s new-home construction sales are strong for single-family in both the suburbs and infill. Apartment condos are in oversupply. Most buyers are looking for a new or “like new” home across all price ranges. Based on the current demand, single-family, duplex/rowhouse and townhomes with yards are a little undersupplied. One new-home construction trend that has emerged throughout 2020 has been the need for home office space options, which is directly related to COVID-19.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
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Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”
- Has Edmonton’s real estate market bounced back despite the COVID crisis?
- What do leading indicators suggest about Edmonton’s housing market?
- How confident are Canadians in the housing market?
- Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey
The Edmonton housing market experienced a drop in sales activity at the peak of COVID-19 lockdowns in April and May, but June saw activity 14% above the levels experienced in 2019. Transactions are also back to pre-COVID-19 levels and the region continues to see multiple offer situations, with sellers’ market-like activity in various neighbourhoods and property types. Edmonton’s housing market is expected to have a strong fall, with September and October anticipated to have higher than historical sales levels.
Acreage living is seeing an uptick in buyer interest as more Edmonton residents are now looking for more space in their properties. In fact, the age demographic for acreage living is getting younger. A 1% increase in average residential sales price is expected in Edmonton, Alberta for the remainder of the year.
Edmonton’s Housing Market Bounced Back To Pre-COVID Levels
While COVID-19 lockdowns in March and April slowed down the housing market in Western Canada, transactions in Kelowna, Saskatoon and Vancouver resumed by May, with sales in both May and June surpassing year-over-year levels. Many buyers put their plans on hold at the peak of COVID-19 lockdowns, but they returned to the market quickly to make up for lost time. Edmonton’s housing market quickly bounced back to pre-COVID levels in June, while Saskatoon experienced its busiest June in years; this momentum is anticipated to continue into the fall market, with RE/MAX brokers and agents estimating a three-per-cent increase in average residential sale prices for the remainder of the year. Overall, brokers and agents in Western Canada say the potential buyers they are talking to are not too concerned with a potential second wave of COVID-19 impacting their real estate journey, and RE/MAX brokers are estimating steady activity to round out 2020.
Indicators Point To A Strong Housing Market In Western Canada
Leading indicators from RE/MAX brokers and agents across Canada’s housing market point to a strong market for the remainder of 2020. According to the RE/MAX Fall Market Outlook Report, RE/MAX brokers suggest that the average residential sale price in Canada could increase by 4.6% during the remainder of the year. This is compared to the 3.7% increase that was predicted in late 2019.
The pandemic has prompted many Canadians to reassess their living situations. According to a survey conducted by Leger on behalf of RE/MAX Canada, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. This trend is stronger among Canadians under the age of 55 than those in the 55+ age group.
Not only are Canadians more motivated to leave cities, but changes in work and life dynamics have also shifted their needs and wants for their homes. According to the survey, 44% of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a large yard.
Canadians Equally Split On Their Confidence In The Housing Market
Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident. When it comes to the prospect of a second wave of COVID-19, 56% of Canadians who are feeling confident in Canada’s real estate market are still likely to buy or sell.
“While COVID-19 lockdowns slowed Canada’s housing market at the start of a typically busy spring market, activity bounced back by early summer in many regions, including Vancouver and Toronto,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained, and current market activity further exemplifies this. Many homebuyers are now exploring different neighbourhoods that better suit their new lifestyles, and real estate agents are getting busier and working more with buyers from different major cities. According to our brokers and agents across the RE/MAX network, Canada’s fall market is expected to see spring market-like activity.”
Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey:
- 48% of Canadians would like to live closer to green spaces
- 48% of Canadians say it’s more important than ever to live in a community close to hospitals and clinics
- 33% of Canadians would like more square footage in their home and have realized they need more space
- 44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)
About the 2020 RE/MAX Fall Market Outlook Report
The 2020 RE/MAX Fall Market Outlook Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments.
The Edmonton housing market will lean toward buyers in 2020 with the average residential sale price expected to drop by one per cent. This is due to average values declining, at least until the oversupply of inventory is absorbed. However, some areas and product types are seeing a five percent increase.
Some of the most popular property types in Edmonton include two-story detached homes, luxury properties, infill and “skinny homes”. It is expected that the city’s economy will improve when the government stimulates job creation and when a federal housing policy is implemented that will benefit all Canadian home buyers.
Many new and larger developments in the downtown, Oliver and Strathcona neighborhoods, many of which are integrated with expanding the LRT network, are expected to impact the market in 2020.
Strathcona and Glenora will continue to be very popular neighborhoods based on the amount of infill and new construction projects that are bringing a variety of pricing and housing options to buyers. Ritchie and Bonnie Doon will also continue to see high demand as the LRT network opens, giving more transit and lifestyle options to those in Bonnie Doon.
First-time and foreign buyers are expected to drive demand in 2020. Foreign buyers who previously flocked to Vancouver are now looking at Edmonton for growth in the coming years.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.
As more Canadians have adjusted to the mortgage stress test and older Millennials move into their peak earning years, it is anticipated that they will drive the market in 2020, particularly single Millennials and young couples. A recent Leger survey conducted by RE/MAX found that more than half (51 per cent) of Canadians are considering buying a property in the next five years, especially those under the age of 45.
Click to read the full RE/MAX 2020 Housing Market Outlook Report.
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