Edmonton homes to remain "affordable" in 2024 despite predicted rise: report
The real estate market in Edmonton ended the year off in better shape than was predicted, according to Royal LePage.
In its most recent report, the Canadian real estate franchiser shows that the aggregate price of a home in Edmonton increased modestly by 0.8% year-over-year to $430,500 in Q4 of 2023.
Every quarter, however, the aggregate price of a home in the region decreased slightly by 0.6%.
While the median price of a single-family detached home increased 1.3% year-over-year to $470,500 in Q4 of 2023, the median price of a condominium decreased modestly by 0.7% to $192,800 during the same period.
According to Royal LePage, activity picked up noticeably in December.
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The Royal LePage National House Price Composite is compiled from proprietary property data nationally and regionally in 63 of the nation’s largest real estate markets.
So what does 2024 have in store?
According to Tom Shearer, a broker and owner with Royal LePage Noralta, price increases will likely be concentrated in the single-family detached segment.
As buyers face growing competition in this area, however, he said some will try their hand in the less popular but much more affordable condominium segment.
“We are heading into the new year with a listing deficit – the lowest inventory levels since 2014 – which will put pressure on buyers throughout the winter and into spring,” Shearer said in a statement.
“Although rising competition will likely push prices up, homes will still remain affordable in Edmonton compared to other major cities across Canada.”
Nationally, the company predicts aggregate home prices to rise 5.5% year over year in Q4 of 2024.
Shearer said he doesn’t believe we will see a big jump in prices until spring, when the market naturally becomes more active.
“However, if mortgage rates were to start coming down in the spring or summer, this will only fuel further competition between buyers, while reactivating investor interest in Edmonton,” he said.
In December, Royal LePage issued a forecast projecting that the aggregate price of a home in Edmonton will increase by 4% in Q4 2024, compared to the same quarter in 2023.
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