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Edmonton Real Estate Market Report: 2023 Recap & 2024 Outlook

As we round out the year, real estate enthusiasts are keen to review the year that was and forecast what 2024 may bring for the Edmonton real estate market. From population increases to interest rate changes and property prices, let's delve into the details and explore the likely trends for the coming year.

Highlights of the 2023 Edmonton Real Estate Market

Despite the global uncertainties, Edmonton's real estate market experienced significant developments in 2023. Key highlights include a 3.5% increase in Edmonton’s population, with more than 45,000 people migrating to Alberta within a three-month period alone. The Bank of Canada interest rates rose 75 basis points in 2023 to 5.0%, impacting mortgage affordability.

In terms of property prices, the average selling price for a single-detached home was $479,000, for a semi-detached home $362,000, for a townhouse $271,000, and for a condo $172,000*. (*Average as of November 2023 for the Greater Edmonton Area.)

The market for single-family homes priced under $500,000 remained hot, and this trend is expected to continue into 2024 due to high demand and limited supply.

Edmonton Real Estate Forecast for 2024

As we look ahead, we foresee some key trends that will shape the Edmonton real estate market in 2024:

Interest Rate Cut Expected

Experts predict a slight cut in interest rates in 2024 by the Bank of Canada. However, the impact won’t be too dramatic even in Edmonton, which continues to be one of the most affordable markets in Canada.

Continued Migration to Alberta

The strong Alberta economy is expected to continue attracting newcomers, driving population increases, and hence housing demand, particularly in more affordable Edmonton compared to Calgary.

First-Time Buyers and Investors Still Driving Market

First-time buyers and investors are expected to continue to dominate the market, particularly for condos, semi-detached homes, and single-family homes in the under-$500,000 range. This could potentially shift the Edmonton market to a seller’s market during the peak sales months of 2024.

Residential Prices Expected to Increase

While the average Edmonton sale price decreased by 4.3% from 2022 to 2023, an increase of about 4% is predicted for 2024. Home sales transactions, on the other hand, are expected to decrease by about 5% in 2024.

2024 Outlook: A Favourable Forecast for Edmonton

The Edmonton real estate market forecast for 2024 is quite promising. A robust provincial economy, continued population growth, and a possible interest rate cut by the Bank of Canada will all contribute to a stable property market.

Edmonton’s affordable property market has attracted a wave of inter-provincial migration, with approximately 40,000 new residents in 2022 alone. This trend is expected to continue into 2024, bolstering demand, particularly for homes under $500,000.

However, affordability concerns due to high mortgage rates may continue to impact the market, particularly in the $600,000+ range, limiting the buying power of move-up buyers.

With all these factors at play, the next six to nine months may present a unique window of opportunity for potential buyers, particularly those from outside the province, to secure affordable properties in Edmonton. The city's affordability, in comparison to other major Canadian markets such as Toronto, makes it an attractive investment opportunity that may not last much longer.

As we look to 2024, we’re excited to see what the Edmonton real estate market will bring. Whether you're a first-time buyer, an investor, or a homeowner looking to sell, it's vital to stay informed about these market trends to make the best possible decisions. After all, as we always say, those who refuse to settle for the ordinary deserve the best.

Want to know more and discuss your 2024 strategies?  Contact us today

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Knowledge is Power: Edmonton Real Estate Market

The Edmonton real estate market has been a topic of discussion for many years, and as we head into 2023, it continues to be a subject of interest for both buyers and sellers. With the ongoing pandemic and economic changes, the real estate market in Edmonton has seen its ups and downs over the past few years. In this blog post, we will take a closer look at the Edmonton real estate market in 2023.

Home Prices and Market Trends

As of 2023, the Edmonton real estate market is expected to remain stable, with a moderate increase in home prices. According to recent reports, the median home price in Edmonton is around $375,000, with the average price per square foot hovering around $250. These numbers are expected to rise slightly in the coming years, as demand for housing in Edmonton continues to grow.

Market trends show that detached single-family homes remain the most popular choice for homebuyers in Edmonton. However, there has been a recent uptick in demand for townhomes and condominiums, as younger buyers and first-time homebuyers look for more affordable housing options.

In terms of market conditions, Edmonton is currently experiencing a balanced market, which means that there are roughly an equal number of buyers and sellers. This makes for a healthy market, with a good balance of supply and demand.

Impact of the Pandemic

Like many other cities, Edmonton has been impacted by the ongoing COVID-19 pandemic. The pandemic has had a significant impact on the real estate market, with many buyers and sellers hesitant to enter the market due to economic uncertainty.

However, as the pandemic continues to stabilize and the economy improves, we are seeing an increase in buyer and seller activity in the Edmonton real estate market. While the pandemic may have slowed down the market initially, it seems to have bounced back in recent months.

Future Outlook

Looking ahead to the future, the Edmonton real estate market is expected to remain stable and continue its moderate growth trajectory. Demand for housing in Edmonton is expected to remain steady, with the younger demographic driving demand for more affordable housing options.

The city's expanding job market and overall economic stability are expected to continue to attract people to the area, which will only fuel the demand for housing in Edmonton.

In conclusion, the Edmonton real estate market in 2023 is expected to remain stable, with moderate growth in home prices and demand for housing. With a balanced market and a steady increase in demand, the future looks bright for the Edmonton real estate market.

 

 

 

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Q3 Edmonton Real Estate Market Update

Edmonton Real Estate Market Report: Quarter Three, 2022


2022 has been a wild ride with extreme changes, not unlike the weather in Edmonton.  Unprecedented amount of factors including the pandemic, rising interest rates, gas prices, inflation, and the war in Ukraine all contributed to an everchanging and quick adjustments in the Real Estate market.

The first quarter offered sellers an incredible opportunity as interest rates remained low, buyers were highly active, and inventory was sparse.  With lineups out front doors, multiple offers, and quick sales - buyers were at an incredible disadvantage and some were left with nothing to buy. While sellers who acted fast and listed their homes early in the year, enjoyed the quick sales and opportunity to move.

The second quarter of the year brought many more sellers to the market as they were catching wind of how much and how fast properties were trading for at the start of the year and buyers began to get a reprive from the agressive market; however homes in the SW of Edmonton continued to prevail as the hottest and most in demand homes.

This past quarter has been much slower than the previous two, ending with lots of available inventory that does not quite match the current needs of buyers.  A shocking 70% of all Single Family Homes that sold during Q3 in Edmonton were under $500,000; while currently only 60% of available invertory is priced at that level.

Fewer homes sold in Q3 of 2022 than they did in Q3 of 2021:

What is more interesting, is the value of the homes that sold in Q3 of 2022.  Over 70% of all Single Family homes sold, in Edmonton, were under $500,000:

The current available inventory of homes for sale in Edmonton does not match the previous wants of buyers, with a higher level of inventory in the luxury market then is actually selling.

If you are a seller in this market, there are a few tips to stay competitive to get your house sold before winter takes hold:

For Sellers:

  • PRICE: Currently, buyers tend to be pickier about the price they’re willing to pay due to rising interest rates and a lower affordability threshhold. Really hone in on the listing price you’re comfortable with — if you want to sell quickly, consider listing it on the lower side.
  • CURB APPEAL: Never underestimate the power of a well-manicured lawn and pretty flower boxes to grab the attention of potential buyers. Make sure the front of your house is looking its best — you never get a second chance to make a first impression. Buyers often drive around their preferred neighbourhoods window shopping, so give them show-stopping curb appeal they can’t ignore.
  • KNOW YOUR WEAKNESSES: While hiring a house inspector is usually done by buyers making an offer, get ahead of the game and hire one as a seller. Having that report available for potential purchasers takes one task off their plate and that might swing the scales.
  • SHOW THE BEST: Nothing puts off potential buyers like a home they can’t even see thanks to stacks of papers, overflowing cupboards and messy countertops. Go through each room and pack up 50 per cent of the “stuff” — then store, donate or trash it. When people walk into their potential dream home, they want to see large, airy rooms not shelves packed with personal knickknacks.
  • APPEAL TO THE MASSES: Millennials make up the largest cohort of buyers in Canada right now so consider adding features that appeal to this generation. Consider upgrading lighting, hardware or even appliances - $2000 upfront could mean the difference of a sale.
  • STAND OUT:  it’s all about making your property stand out in a sea of comparable properties. Offering something more creative than just your regular financial incentives, such as prepaying taxes or a year’s worth of landscaping services or paying homeowners’ association dues are just two examples of outside-the-box incentives.

 

If you are a buyer in this market - you may be able to secure that high value home at a much lower price; however read below for tips on maximizing the value in this current market:

For Buyers:

  1. Get Pre-Approved: There is nothing more defeating then looking at a home you come to learn, you can not afford.  It also gives you the opportunity to shop around for the best deal and the best interest rates. 
  2. Work with an Agent: Even before you start looking, even before you attend an open house.  A professional can and will give you more options and ensure you stay on the competitive track when negotiating for your dream home.
  3. Have a Buget and a Plan:  Of course, you won’t be able to afford everything on your wish list. So, make two lists: everything you want in a home and everything you can’t live without.   
  4. Do Not Get Dstracted by the Pretty Things.  Houses are an investment, they cost money.  Shocker right?  When you have the pick of available homes you should put higher value in the mechanical and structural integrity of the home.  Roof! Furnace! Windows! Plumbing! Electrical! Foundation!  These are the BIG TICKET items that should be the highest priority - not the wallpaper in the bathroom.
  5. Consider Future Revenue: With so much uncertainty about the economic future, you might want to consider purchasing a home that could or does have a secondary suite (ie. basement suite).  While you never have to rent it, having the option in the future could offset some expences if jobs, economy, or life took an unexpected turn.
  6. Location is Everything.  A home can be renovated, the location cant.
  7. Put Together an ICONIC Home Buying Dream Team: including an experienced  real estate agent, professional home inspector and mortgage lender; if you’re buying investment property, add a tax expert and a real estate attorney. All of these professionals should willingly and kindly share their knowledge and expertise. If not, find someone else.

Everyone needs a plan, and we can help.

 If you are a buyer or a seller looking to make a move in Edmonton - contact us for more information on how to be the most competitive and ensure you are getting the highest level of value.


 
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