Edmonton’s real estate forecast suggests a dynamic 2025, driven by the city’s proactive measures to address housing demand. With recent initiatives to reduce red tape and update bylaws, the City of Edmonton has paved the way for a record year of housing starts.
These changes have helped position Edmonton as a unique market within Canada, offering more affordable options than other major cities.
“For 2025, navigating this delicate balance will be essential for the market’s future, with important implications for both prospective buyers and sellers,” says Shounak Mehta, Founder of Juriscorp Law. Read our Edmonton real estate forecast for 2025 below.
This article does not constitute any real estate or legal advice or recommendations. It is a subjective assessment of the real estate market in Edmonton, which is subject to change. To get an accurate picture of the market, speak to your real estate agent or a real estate lawyer.
Residential Edmonton Real Estate Forecast
Edmonton, now home to nearly 1.6 million residents, continues to see shifts in its housing market. While it may not make the top 100 cities list globally like Calgary, Toronto, or Vancouver, Edmonton’s real estate sector has its own dynamic trends.
Following the pandemic-fueled surge in home prices, the market remains on an upward trajectory, though rising interest rates have put a damper on some buyer enthusiasm.
Source: Realtors of Edmonton
As of October 2024, the average home price in Edmonton has reached $440,089, representing an impressive 11% increase from the previous year. However, month-over-month, there’s been a slight dip of 0.1%, the Edmonton real estate forecast signalling a potential cooling off as we head deeper into the fourth quarter.
Detached Home Prices
Detached homes in Edmonton have seen a significant surge in prices over the past year. As of October 2024, the average price for a detached home stands at $552,954, marking a robust 13.6% increase compared to the same period last year.
Despite higher interest rates creating challenges for affordability, demand for detached properties remains strong, driven by families looking for more space and privacy.
For prospective sellers, current conditions may present an ideal window to capitalize on the recent price gains. On the other hand, buyers might want to proceed with caution. Although the market remains competitive, there’s speculation that prices could cool slightly if inventory levels rise, interest rates stay elevated, or if the new Land Transfer and Mortgage Registration fees deter buyers.
Semi-Detached Home Prices
The semi-detached home segment in Edmonton has seen moderate yet steady growth over the past year. As of October 2024, the average price for a semi-detached home is $407,006, reflecting a 5.5% increase year-over-year.
This upward trend highlights the sustained demand for semi-detached properties, especially among first-time buyers and those looking for a balance between affordability and additional living space.
However, the market isn’t without its fluctuations. Month-over-month, prices have dipped slightly by 1.5%, with the real estate forecast for Edmonton indicating that while semi-detached homes remain popular, they may be more susceptible to shifts in buyer sentiment as mortgage rates hover at elevated levels.
Source: WOWA
Townhouse Prices
Townhouses in Edmonton have experienced a strong upswing in prices over the past year, driven by their appeal to both young families and downsizers seeking a blend of affordability and space.
As of October 2024, the average price of a townhouse has reached $307,854, showcasing a substantial 19% increase year-over-year. This surge highlights the growing demand for townhomes, which offer a middle ground between single-family houses and condos.
Even more striking is the recent 5.1% month-over-month increase, suggesting that the townhouse market is still gaining momentum despite broader economic uncertainties.
Condo and Apartment Prices
Unlike other segments of Edmonton’s real estate market, condos and apartments have faced more challenges. As of October 2024, the average price for a condo in the city is $191,413, reflecting a 6% decrease compared to the previous year. Month-over-month, prices have dipped further by 4.1%, indicating that the condo market is under pressure.
However, for buyers looking to enter the market, condos and apartments remain one of the most accessible entry points into Edmonton’s real estate sector. Edmonton’s real estate forecast suggests that, with prices cooling, this could be an opportune moment to secure a property at a lower cost, particularly if mortgage rates begin to decline over the next year.
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Commercial Real Estate Forecast for Edmonton
As credit conditions normalize and access to financing improves, Edmonton’s commercial real estate market is set to continue its upward trends. According to Dave Young, Managing Director at Commercial Real Estate Services (CBRE), there’s renewed optimism for Alberta’s major cities, with both Edmonton and Calgary positioned for growth after a challenging few years.
Following a decline of over 15% in commercial property values since the pandemic, the market continues to show recovery. The leasing market shows improvements, and mid-sized investment deals are leading growth of the market.
Expectations for Edmonton’s Real Estate in 2025
Edmonton’s real estate forecast is defying trends seen in other major Canadian cities like Vancouver and Toronto, where prices have been correcting downward. Several unique factors are keeping Edmonton’s property market relatively resilient, with three key dynamics at play:
- Supply and Demand Imbalance
Edmonton faces a tight supply situation, with fewer active listings compared to other cities, despite a record pace of new home construction. As these projects reach completion, they could provide some relief to the current supply crunch.
On the demand side, Edmonton remains attractive due to its more affordable housing options and job opportunities. Steady migration inflows, both from other provinces and abroad, sustain this demand, keeping pressure on already limited inventory.
- Investor Activity
With rental yields in the city being nearly double what you’d find in places like Vancouver, Edmonton has become a hotspot for those seeking better returns on their investments. A significant number of home purchases are driven by investors.
This influx of investor activity not only reduces the housing stock available for owner-occupiers but also contributes to the upward pressure on prices.
- Interest Rates and Market Uncertainty
One of the most influential factors for 2025 will be interest rates. The Bank of Canada has already taken steps to lower its policy rate from 4.25% to 3.75%. Economists anticipate further reductions, with the policy rate potentially heading towards the 2.25-3.25% range, which is considered neutral.
However, even as rates trend downwards, they are unlikely to reach pre-pandemic lows anytime soon. For prospective buyers, the question remains: should you wait for better mortgage rates, or buy now to avoid potentially higher home prices?
The five-year fixed mortgage rate has already dropped by over 1% since its peak in late 2023, but many experts expect rate reductions to occur gradually, with only modest decreases expected in the near term.
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Opportunities and Risks for Sellers and Investors
For those considering selling, the current market offers a window to take advantage of rising prices before a potential correction occurs. On the investment front, Edmonton continues to present lucrative opportunities, especially in the rental market.
However, caution is advised, as a sudden market correction could impact rental yields and property values. Furthermore, Edmonton’s economy is heavily tied to the oil sector, which, while currently buoyed by above-average prices, could shift quickly.
Protect Your Interests with Juriscorp Law
Though the real estate forecast for Edmonton is positive, given the wider economic uncertainties, it’s more important than ever for you to keep your options whether you are looking to buy or sell real estate. Our real estate lawyers can help you protect your interests, while minimizing risks.
Whether you’re a first-time homebuyer, an experienced investor, or a seller looking to make the most of current conditions, our team is ready to provide the expert support you need to succeed in Edmonton’s dynamic market. Schedule an appointment with an experienced real estate lawyer near you in Edmonton.