Edmonton house prices to get even hotter thanks to influx of residents

Limited housing inventory and an influx of residents moving to Edmonton have led to a stronger-than-expected first quarter, and house prices are rising, a new report from Royal Lepage details.

In the report, the Canadian real estate franchiser shows that the aggregate price of a home in Edmonton increased by 3% year-over-year to $442,200 in the first quarter of 2024.

On a quarterly basis, the aggregate price of a home in the region increased 2.7%.

While the median price of a single-family detached home increased 4.2% year-over-year to $485,500 in Q1 of 2024, the median price of a condominium increased modestly by 0.6% to $196,500 during the same period.

According to Tom Shearer, broker and owner of Royal LePage Noralta Real Estate, Edmonton had a busier-than-normal Q1. The city’s real estate market is heading into spring with “sustained high levels of buying and selling activity.”

“With inventory at a two-year low, sellers have the upper hand in this hot market, driven in part by Ontarians relocating to the city,” said Shearer.

“Edmonton’s more affordable housing options and healthy job market continue to attract out-of-province buyers.”

Shearer noted that starter homes in Edmonton have been receiving a lot of interest lately, with those priced under the $575,000 mark fetching two or three offers at a time as competition remains tight.

Similarly, interest in the condominium market has been picking up steam for the first time in years.

So what’s in store for the rest of 2024? Royal Lepage forecasts that the aggregate price of a home in Edmonton will increase by 6.5% in Q4 of 2024 compared to the same quarter last year.

“The critical question we ask ourselves is: Will new inventory come, and if so, when?” said
Shearer.

“With limited home supply and an influx of residents moving to the city, I expect we will continue to see price growth and strong levels of activity throughout the second quarter of 2024 and into the summer and fall markets.”

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Nationally, Royal LePage is forecasting that the aggregate price of a home in Canada will increase by 9% in the fourth quarter of 2024 compared to the same period last year.

The aggregateprice of a home in Canada increased 4.3% year over year to $812,100 in the first quarter of 2024.