As we analyze January's data for the Greater Edmonton real estate market, remarkable trends emerge. January observed a notable surge in property values, with single-family homes escalating by 14% to reach a benchmark price of $495,700 compared to last year. Apartment-style condos and townhouses were not far behind, marking increases of 9% and 13%, respectively. This surge culminated in the sale of a record-breaking $6 million single-family home, setting a new peak for luxury real estate in the region.
Inventory levels remained low, totalling 3,723 listings—an 18% decrease from the previous year—reflecting a robust seller's market. This is particularly pronounced as Edmonton witnessed 1,597 homes sold in January alone, an 11% increase year over year and the highest for the month in at least 15 years. The market currently has only 2.3 months of supply, reinforcing the seller's market, an ongoing trend for nearly two years.
Amidst these market dynamics, Alberta’s population continues to grow, albeit at a moderated pace. Still, it is faster than the national average, sustaining a high demand for housing. The Bank of Canada's recent cut in the policy rate by 25 basis points has enhanced this demand and spurred further interest in real estate investments.
President Donald Trump has agreed to delay imposing 25% tariffs on Canada and Mexico for 30 days, pulling us back from the brink of a potentially damaging trade war. However, the threat remains and has already affected consumer behaviour, with many talking about boycotting American products and/or trying to buy more Canadian goods.
When financial turmoil occurs, people generally look for safe places to invest their money, and one of the safest places is real estate. All the factors that created tight market conditions in Edmonton—low inventory, low vacancy rate, population growth, and relative affordability—are still in place.
Other major events of the last 25 years (wars, dot-com busts, financial meltdowns, trade disputes) have had an undeniable impact on the real estate market. So, we believe the tariffs will impact the market if they are enacted, but it’s not clear yet what or how big the impact will be.
City of Edmonton Stats
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