Edmonton Real Estate Market Outlook for 2025

The Edmonton real estate market experienced significant shifts in 2024, leaving investors and home buyers wondering what lies ahead in 2025. Numerous factors are shaping the future, such as rising home sales, climbing prices, and shifting mortgage rates. This article dives into the 2024 market data to forecast what real estate investors and home buyers can expect in 2025.

2024 Recap: A Year of Growth in Edmonton Real Estate

Before we look at 2025, we need to understand the 2024 real estate market trends in Edmonton. Here is a snapshot of key highlights from December 2024:

Housing Market Trends:

• Home Prices:
• The average residential home price rose 12.2% year-over-year (YoY), reaching $435,549.
• Single-family homes saw a 9.7% YoY increase, putting the average price at $461,900.
• Townhouses and multi-unit properties experienced the largest leap, rising 12.6% YoY to $268,700.
• Apartments and condos surged 19.8% YoY, with average prices hitting $203,920.
• Sales Activity:
• There were 1,428 December sales, a 17.2% increase from December 2023. Detached homes recorded the strongest growth at 18.8% YoY.
• Row and townhouses saw a 13.1% YoY sales increase, while semi-detached properties closely followed at 18.7%.
• Inventory:
• Inventory levels dropped substantially, declining 24.6% YoY. This low supply coupled with increased demand helped contribute to the rising prices.
• Rents:
• Edmonton’s rental market also saw steady growth, with average rents increasing 3.0% YoY to $1,506 for December 2024.

Mortgage Rates:

• Fixed mortgage rates for a 5-year term remained stable, while variable rates saw declines due to reductions in the Bank of Canada’s key interest rates.

Market Dynamics:

The Edmonton market ended 2024 in balanced conditions, though inventory shortages created pressure on buyers to act quickly. Sellers benefited from quicker sales, albeit with slightly longer listing days recorded in some segments (e.g., condos remained on market for 57 days, up by 9 days).

Predictions for Edmonton’s Real Estate Market in 2025

Using 2024 trends as a foundation, we can anticipate several key developments for Edmonton’s housing market in 2025:

1. Continued Price Growth, But at a Slower Pace

The sharp growth in home prices witnessed in 2024 is likely to moderate in 2025. While demand is expected to remain strong, higher prices and gradually improving inventory levels may slow the rate of increase. Expect residential home prices in Edmonton to grow between 5–7% YoY, compared to the 12.2% surge in 2024.

Key drivers of continued price growth include:

• Persistent low inventory, despite a potential uptick in new listings.
• High demand for affordable property types, such as condos and townhouses, due to their relative accessibility.

2. Rental Market Strengthens

With home prices on the rise, renting will remain an attractive option for many Edmontonians, particularly younger professionals and newcomers. Average rents are forecasted to climb by another 3–5% YoY, with increased demand for rental units driven by affordability pressures in the purchasing market.

3. Condo and Townhouse Sales to Outpace Detached Homes

The condo and townhouse segments achieved standout growth in 2024, and this trend is expected to continue. These property types offer buyers an entry point into the market at a lower price. For investors, condos and townhouses remain hot assets, as they balance lower costs with attractive rental yields.

Expect condo sales to show YoY growth of 10–15% in 2025, with similar gains likely for townhouses.

4. Inventory Improvements Bring More Stability

Edmonton’s tight inventory was a defining feature of 2024, but the 2025 market will benefit from better stock availability as economic conditions stabilize. The anticipated new listings and active seller participation will help ease some pressure points, creating a more balanced supply-demand dynamic.

However, inventory won’t increase drastically overnight. Buyers still need to be proactive and prepared as competition for properties will remain high.

5. Lower Mortgage Rates Lead to Renewed Demand

With the Bank of Canada lowering interest rates over the past three adjustments, variable mortgage rates are expected to decline further in early 2025. This will help more buyers return to the market, particularly first-time buyers who were previously priced out due to affordability issues.

While fixed mortgage rates may stay steady, the availability of enticing variable rates is likely to entice cautious borrowers into action.

6. Overall Market Balance Expected

2025 is shaping up to be another year of balanced market conditions for Edmonton. While demand and competition will remain robust due to growth in sales, the gradual easing of inventory issues will balance the scale for buyers and sellers alike. This balanced environment will provide opportunities for both cautious and bold participants in the real estate market.

Strategic Tips for Real Estate Investors and Home Buyers in 2025

• Investors:
• Keep an eye on condos and townhouses, as these property types are expected to perform well in both value appreciation and rental demand.
• Use the market’s relative stability to focus on high-yield rental properties.
• Home Buyers:
• Be prepared to act quickly on listings, as competition is still high despite improving inventory.
• Leverage lower mortgage rates to maximize your purchasing power.
• Explore emerging neighborhoods, where affordability and appreciation potential remain high.

What Lies Ahead?

The Edmonton real estate market in 2025 will likely continue building on the momentum of 2024, though at a more measured pace. For both real estate investors and home buyers, understanding the shifting market dynamics will be key to making informed decisions.

The housing market is dynamic, and success lies in staying informed and having the right strategy. Whether you’re seeking your next investment property or planning to find your forever home, the Edmonton real estate market is ripe with opportunity.

Want to stay ahead of the curve? Bookmark this page and check back for quarterly market updates throughout 2025.