Like most of the country, the real estate market in the City of Edmonton and surrounding areas have been on a roller coaster ride since record-breaking peaks earlier in Spring 2022. Being bolstered by the high prices of oil this year as well as the greater affordability of homes in the area has given Edmonton and most of Alberta a bit of a softer landing. According to the Realtors Association of Edmonton, August saw total sales volume decrease by -8.3% in the Greater Edmonton Area and -8.9% dip over July in the City of Edmonton proper. This is a larger decline versus Alberta’s largest city, Calgary, which saw a decrease of only -2.6% versus July. Edmonton is also down -12.7% year-over-year (y-o-y) which is slightly more than the Greater Edmonton area which posted a -12% drop. Calgary posted only a modest y-o-y decline of -0.5% while comparatively, the Greater Toronto Area posted a sizable drop of -34% in sales volume versus 2021.
Price Drops Since Peak in May 2022 Still Showing Growth Over 2021
A drop in home sales volume is not the only decline the market is seeing. As Canadians are feeling the pinch of higher inflation and the 300 basis points increase to the Bank of Canada interest rates this year; this has made some buyers hesitant to enter the market and caused a steady price decline month-over-month (m-o-m) since the peak in May 2022. In the City of Edmonton, the composite benchmark home price has dropped to $392,400, according to the Canadian Real Estate Association (CREA). This represents a 3.0% drop m-o-m and 4.25% dip since May. However, the benchmark price is still up y-o-y by 4.1% across all property types. A similar scenario can be seen across the Greater Edmonton Area with benchmark prices declining -2.8% versus July but still up 4.3% y-o-y.
- Read: Alberta is One of Canada’s Strongest Real Estate Markets Right Now, Here’s What is Setting it Apart
Not All Home Types Created Equal
While prices may be down from their peak, they are holding value versus mid-pandemic levels in Dec 2021. However, a deeper dive by home types shows that not all home types are holding their value as well. In the Greater Edmonton area, Apartment / Condos have dropped -1.2% m-o-m and dropped by -0.1% y-o-y. While the dip versus 2021 may not seem significant, in the City of Edmonton, it is more pronounced with Apartment / Condos declining -1.6% y-o-y and -0.7% m-o-m. Apartments are the only home type that have dropped in price versus 2021. Single family homes are still up 4.3% in the city core and townhouses are even more interesting to those looking for more space but still at an affordable price. Townhouses have increased 8% y-o-y despite suffering a small decline of -0.9% over July. Comparatively, Calgary’s home prices have fared slightly better with apartments gaining in price by 10% y-o-y, detached by 13% and townhouses coming in at 14% growth versus 2021.
According to eXp Realtor and local agent Drew Carlson, “Price reductions are common in Edmonton right now. Sellers are realizing that they have to be realistic and price their home properly.”
If you would like to know more about real estate prices and new homes for sale in Edmonton, contact one of our agents today!