The Greater Edmonton real estate market has showed remarkable resilience and growth in May 2024. Sales increased by 18% compared to last year, with a total of 3,220 properties changing hands. This growth has outpaced the addition of new listings, which rose by 10%, leaving the inventory at a decreased level of 5,836 listings - a 17% reduction from the previous year. This has solidified Edmonton's status as a seller's market, with only 1.81 months of supply.
The Bank of Canada decreased interest rates by 0.25% yesterday, yet fixed mortgage rates are expected to remain stable for the near term.
Vigorous demand for housing has been caused by the level of interprovincial and international migration to Alberta. Last year, Alberta experienced unprecedented net migration and there is no end in sight. At a training session yesterday, nearly all of our agents reported working with out of town buyers in the past few months, with some saying it's been the majority of their business this year. Unlike earlier periods, today's migration wave is significantly driven by international newcomers, exerting pressure on the rental market and in turn stimulating demand among first-time buyers.
The current influx of new residents to Alberta, attracted by Edmonton's comparatively lower housing costs and the flexibility of remote work, represents a shift in migratory motivations. The price gap between Edmonton and other major Canadian cities, as well as Calgary, stands at a historic high, indicating a unique economic advantage for the region.
While the peak of this year’s market may have passed, with recent weeks showing a slowdown in sales, the construction sector's efforts to keep pace with demand throughout Alberta points towards a market that remains vibrant. The continued growth in population, propelled by migration, is likely to sustain demand in the face of a tightening supply.
City of Edmonton Stats
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