January 2025 Edmonton Real Estate Market Update

As the hangover of our holiday festivities and failed (or perhaps successful) resolutions begins to fade, Edmonton’s 2025 real estate market presents to us a dynamic landscape for buyers and sellers. For those of us with an eye towards savvy investment opportunities, here's an overview of current trends and projections to help navigate the market effectively.

Current Edmonton Real Estate Market Overview

Most will remember the seller’s market that dominated 2024, with an average residential price of $431,839—a 7.7% increase from 2023. We also saw a sales transaction volume that increased by 27.5% during this period as well.

Predictions for 2025

Market

Experts anticipate a seller's market to continue into 2025, driven by increased demand due to lower interest rates and a limited inventory.

Price Appreciation: Some forecasters project that average residential prices will rise by as much as 10% in 2025, reflecting heightened buyer activity. What a great time to consider selling!

Sales Volume

As buyers enter the market, an increase in transaction volume is expected, with a predicted 4% increase in sales. Factors Influencing the Market

Interprovincial Migration: Edmonton's nationally famous affordability attracts buyers from other provinces, notably the increasingly unaffordable areas of Ontario and British Columbia, and this contributes to increase demand.

Interest Rates

With interest rates expected to continue to lower, more buyers sitting on the fence waiting for better rates are likely to enter the market.

New mortgage reforms

This will increase specific market segments, most notably the 1M-1.5M price point, due to CMHC now offering insurance to this price range. New construction options will also be available for first-time buyers seeking a 30-year amortization to help with affordability. (Visit us at EdmontonRealEstate.net/blog for a comprehensive list of changes as of December 15, 2024.) Advice for Buyers

First-Time Buyers

Because the government incentives will prioritize new-construction homes, first-time buyers may find some more affordable options. Caution is recommended, however, because as demand likely increases for new construction properties, the prices are likely to increase with it. Obviously, as a realtor, my recommendation is always to enter into conversations with developers with un-biased representation to help you determine if it is, in fact, a "good deal."

Move-Up Buyers

Homes in the 1 - 1.5 million price range will become more accessible now that CMHC will insure these mortgages, and purchasers require less than 20% down payment, which is wonderful news for those who spent the holidays wishing they had the space to host the next gathering. For those considering properties in the $600,000 to $1,000,000 range, my advice is to work together with your realtor and mortgage broker to monitor interest rate trends and market conditions to optimize your purchasing decisions so you can feel ready to pounce. Fortunately, these price ranges will become more obtainable due to lower borrowing costs! Advice for Sellers

Market Timing

With the market leaning toward sellers, listing your property early in 2025 could yield advantageous results as you could be able to take advantage of the seller’s market from last year before the market heats up in the spring and many more listings become available.

Property Presentation

Don’t forget to enhance your home's appeal through staging and minor renovations and repairs. This is an effective way to attract more buyers and increase offers and help you stand out in the crowd!

Pricing

Don’t make the common mistake of assuming that because a market is heating up, your home will “sell itself.” Your home still needs to be priced correctly to attract prospective buyers. Many people lose out on a hot market because they see it as an opportunity to overprice their homes, and then savvy buyers ignore the listing due to its being priced significantly over market value. This can potentially result in the seller missing out on the heat of a market, having their home’s listing become stale, and inevitably resulting in a lower sales price once it finally sells. Price it right, right out of the gate, to achieve the best price in the shortest time. 

Neighbourhoods to Watch

  • Here in Southwest Edmonton, we remain a hot spot for families and home buyers. Because we boast excellent schools, amenities, and easy commuting. Many home buyers prefer communities like Windermere, Magrath, Mactaggart, Terwillegar, Cameron Heights, and Edgemont. 
  • Beautiful new communities like Stillwater, Rivers Edge, Edgemont, Glenridding Heights, Keswick, Saxony Glen, and other rapidly developing new Southwest communities should also be watched as they continue to mature and new amenities pop up in the area. These are also communities which buyers may be able to take advantage of some of the government’s new- construction incentives.
  • Established communities closest to our gorgeous River Valley will continue to be in demand. Communities that will continue to attract potential buyers looking for fantastic renovation opportunities and many ready-to-move properties with large lots and established neighbourhoods are: Oleskiw, Gariepy, Donsdale, Westridge, Cameron Heights West of the North Saskatchewan River, Keswick, and Riverbend communities east of the river. Homes bordering natural parks like the Whitemud Creek Ravine will always be in high demand. Magrath and Mactaggart are a couple of highly desirable locations to consider if you love an active lifestyle, accessibility to great schools and amenities, and a prestigious home.  

Conclusion

With Edmonton's real estate market in 2025 poised for growth, trends will continue to favour astute buyers and sellers who are watching the market trends and keeping themselves informed by working with a knowledgeable real estate professional who can help to navigate this evolving market in order to achieve their goals. If this past holiday season you hosted out-of- town relatives or felt a bit claustrophobic after the blessing of an excessive amount of gifts coming in your front door, you might want to consider these opportune market conditions as a way to expand, or even to downsize and take advantage of a potential increase in your home’s value. These are conversations I would love to have with you! Contact Corey Sylvester today to discuss a strategy for a successful home sale or purchase in this new year! (780)221-3088.

Posted by Corey Sylvester on

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