Edmonton’s real estate affordability expected to fuel growth in 2025

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If you think 2024 has been a strong year for Edmonton’s real estate market, just wait until 2025.

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A new report from Re/Max forecasts that Edmonton will be among the nation’s top resale markets next year.

The study that surveyed real estate agents across Canada found Edmonton area realtors are among the most bullish, predicting average price growth for the year at 10 per cent and sales growing four per cent.

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Overall, the market will favour sellers, a condition that is likely to be seen in many other markets across Canada, says Chris Alexander, president of Re/Max Canada.

“There is a renewed sense of improved conditions,” he says about the overall forecast for Canada.

“But based on the data we’ve seen for the past two years, it won’t be a gangbusters scenario by any means, but slow and steady improvement seems to be the consensus.”

The report also polled Canadians about market sentiment, finding 36 per cent were optimistic about the year ahead, while 73 per cent still believe homeownership is the best investment they can make.

Edmonton is among the 44 per cent of markets expected to see sellers’ conditions.

The high-demand conditions are an extension of the strong year in Edmonton for 2024 so far, says John Carter, realtor and broker/owner of Re/Max River City in Edmonton.

“The spring market of 2025 has already started in my opinion.” That’s put pressure on supply of homes already months before the traditional busy market that starts in March.

“The biggest challenge for buyers right now is inventory,” he adds.

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The Re/Max study found strong performance year to date, ending Oct. 31, for price and sales growth in Edmonton. The average price of a home in the city grew 7.7 per cent, to $431,839. That is the strongest growth for cities with one million residents or more. Sales also grew 27.5 per cent, also the highest among major cities. New listings have not kept pace, growing 6.3 per cent, the study cites.

Lower mortgage rates are expected to fuel demand for the Edmonton market in 2025, including single-family detached homes, the largest segment for resales, Alexander says.

“Edmonton has more room to grow with the average sale price lower than Calgary’s.”

Recent Calgary Real Estate Board statistics for November show the average price for a home was nearly $616,000, up almost 15 per cent year over year, and single-family homes at more than $785,000.

The Edmonton condominium apartment resale market remains among the most affordable in Canada for major markets.

That’s no longer a secret as investors from out of province and across Alberta have been driving the segment’s growth, Carter says.

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“The condo market is really on fire right now.”

Despite rising demand, the average price has hovered around or below $200,000 for the segment for several months, he adds.

“It’s still accessible for first-time homebuyers, and investors are able to buy them for below replacement cost — like half the cost to build a new unit.” Carter further notes that the new condo market is poised to add more supply in 2025, which should keep price growth modest on the resale side despite high demand.

“In most cases, the resale apartment properties investors are buying will cash flow from Day 1.”

Still, price growth may accelerate — even for affordable condominiums — in 2025, so price-conscious first-time buyers “should consider purchasing sooner than later,” Carter says.

Even amid the risk — like should U.S. tariffs on exports for oil and gas become a reality — Edmonton’s outlook remains bright because the market remains affordable, he says.

“Right now, the lens is on Edmonton and that should continue through much of 2025.”

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