As we step into the latter part of 2024, Edmonton's real estate market continues to be a focal point for buyers, sellers, and investors. Whether you're planning to buy your first home, sell a property, or invest in the Edmonton market, staying informed is crucial. Here's an in-depth look at the latest trends and what they mean for you.
Strong Growth in Edmonton Home Prices
The Edmonton housing market has shown resilience and growth throughout 2024. The average selling price of a home in Edmonton reached $400,200 in August, marking a notable 7.6% increase year-over-year. This upward trend isn't just limited to single-family homes. Townhouses and multiplexes saw the most significant price surge, with a 14.7% increase, pushing the average price to $270,000. Condos also gained traction, with prices rising 10.7% to an average of $197,800.
Why does this matter? For homeowners, this means your property’s value is likely increasing, making it an ideal time to consider selling. For buyers, understanding these trends helps you navigate price expectations and make informed decisions.
Sales Trends: A Shifting Market
While home prices continue to climb, sales activity has experienced a slight cooling off. The Realtors Association of Edmonton (RAE) reported an 11.8% decrease in residential unit sales from July to August 2024. However, sales remain robust on a year-over-year basis, with a 15.8% increase compared to August 2023.
Key Takeaways:
Detached Homes: Sales decreased month-over-month but saw a 12.5% increase year-over-year.
Semi-Detached and Townhouses: Despite a summer slowdown, these segments experienced an 18.8% and 19.2% annual growth, respectively.
Condominiums: While sales dipped slightly from July, they still posted a strong 22.6% increase compared to last year.
This trend suggests that while the market is cooling slightly from its summer highs, it remains competitive, particularly for certain property types.
Rising Rents Reflect Tight Inventory
The rental market in Edmonton is mirroring the sales market, with the average rent climbing 9.0% year-over-year to $1,570 in August 2024. Notably, bachelor apartments saw a significant 16% increase, reflecting the high demand for rental properties in the city.
What does this mean for you? If you're an investor, this is a strong signal that the rental market remains a lucrative opportunity. For renters, it's essential to act quickly and be prepared for competitive pricing.
Interest Rates and Their Impact
Mortgage rates are another critical factor influencing the market. With Canada’s policy rate at 4.25%, borrowing costs remain a significant consideration for buyers. For every $100,000 in mortgage balance, monthly payments range from $536 at a 4.04% fixed rate to $593 at a 5.15% adjustable rate.
Why you should care: Small changes in interest rates can significantly impact your monthly payments. Buyers should stay informed about rate trends and consider locking in rates when favorable.
What’s Next for Edmonton’s Real Estate Market?
Looking ahead, the Edmonton market is likely to see continued growth, albeit at a more balanced pace. The slight increase in days on market suggests a shift towards a more balanced market, giving buyers a bit more room to negotiate while still favoring sellers in many areas.
For Sellers: If you're considering selling, now might be the right time to capitalize on high prices, especially in the detached and townhouse segments.
For Buyers: As the market cools, there could be more opportunities to negotiate, but expect continued competition, particularly in high-demand neighborhoods.
Conclusion: Navigating the Market with Confidence
Edmonton’s real estate market in 2024 is dynamic, with rising prices and a competitive landscape. Whether you’re buying, selling, or investing, staying informed and agile is key. Partnering with an experienced real estate team like Iconic YEG can provide you with the insights and guidance needed to succeed in this market.
Why choose Iconic YEG? Our team is dedicated to providing the most current market insights and personalized advice, ensuring you make the best decisions in this ever-changing market. Whether you’re a first-time homebuyer, a seasoned investor, or looking to sell your property, we’re here to help you every step of the way.
Want to know more?
Contact Caitlin Heine, Owner of Iconic YEG to chat
587-336-3176 or caitlin@iconicyeg.com
