The Greater Edmonton real estate market closed 2025 from a position of strength, even as conditions began to normalize. A total of 26,835 homes sold in the Edmonton area in 2025, down 6% from 2024 but still above levels seen in 2021 through 2023. With a total of 39,381 listings, an 8% year-over-year increase, buyers had more to choose from in 2025. Despite this, inventory remained below long-term norms for much of the year, sustaining seller-favourable conditions across most property types.
Prices continued to advance at a measured but healthy pace. The annual average single-family home price rose 6.4% to $570,045, while townhouses increased 4.8% to $304,553 and apartment condominiums gained 5.5% to $211,388. These gains reflect ongoing demand pressure rather than speculative excess. The market moved quickly, with average cumulative days on market declining to 51, from 55 in 2024 and 71 in 2023. At the top end, the luxury segment set a new benchmark, with the most expensive home selling for $6 million, compared to $4.2 million the year before.
Population growth remained a defining force. Alberta surpassed five million residents in mid-2025, growing 2.5% year over year—the fastest pace in the country. Affordability advantages and interprovincial migration continued to support housing demand. However, job creation lagged population growth, and Alberta’s average unemployment rate of 7.3% through November acted as a constraint.
On the supply side, record-high housing starts — estimated at roughly 55,000 units province-wide — began to ease pressure, especially in rental-focused segments. As a result, activity in apartment condominiums and townhomes slowed in the second half of the year, and flat-to-slightly lower rents are expected in 2026 as new purpose-built rentals are completed.
Monetary policy provided partial support. The Bank of Canada’s rate cuts—from 5% to 2.25% during the 2024–2025 easing cycle—improved borrowing conditions. Still, global trade uncertainty and stretched household budgets limited the full impact of lower rates.
Looking specifically at December 2025, the market showed a typical seasonal cooling. Sales were strong for the month but 8% lower than last December. Benchmark prices were up 7% year over year for single-family homes, while condos rose 1% and townhouses were unchanged. Inventory increased 29%, bringing supply to 3.4 months, though conditions varied widely by property type.
Looking ahead, slower population growth and more balanced supply point to stabilization rather than correction in 2026. We will post a more detailed outlook after the REALTORS® Housing Forecast on January 15, where industry leaders and economists will assess the next phase of the Edmonton market.
City of Edmonton Stats
Leave A Comment