Elevated Demand and Diminishing Supply: A Deep Dive into Edmonton's Real Estate Market

As we turn the pages to the final chapter of 2024, the Greater Edmonton real estate market presents an interesting story of growth and resilience, underscored by robust demand and limited inventory. In this analysis, we look into the key trends that shaped our market in December.

Pricing

The benchmark price for single-family homes rose by 8% to $475,500, compared to last December. Apartment-style condos followed closely with a 9% increase, pricing at $194,600. Meanwhile, townhouses, blending the allure of community living with the promise of ownership, have surged by an impressive 13% to $268,400.

Inventory Insights: A Seller's Advantage

Amidst this increase in prices, the market's inventory levels stayed well below the norm for all of 2024. By the end of the year, listings had dwindled to 3,491, a 24% decrease from the previous year and the lowest in a decade, ushering in a distinct seller's market with merely 2.4 months of supply. The market has predominantly favoured sellers for nearly two years in the Edmonton area.

The Broader Context: Economic Indicators and Market Demand

While Alberta’s population growth began to moderate in the third quarter of 2024, its pace remains ahead of the rest of the country, thereby sustaining housing demand. Furthermore, the Bank of Canada’s recent policy rate cut by 50 basis points in December has thrown another log on the demand fire, potentially warming up the market even further as we transition into 2025.

Looking Forward

With the REALTORS® Association of Edmonton poised to unveil its annual Housing Forecast next week, I eagerly anticipate sharing a detailed summary right here on the Liv Real Estate blog, ensuring you stay well-informed and ahead of the curve.