Your Definitive Guide to the Edmonton Housing Market in 2023
Market Report Summary for June 2023
- Edmonton’s average home sale price decreased 7.7% year-over-year to $371,200 for June 2023. While in comparison, provincially, the average home sale price was down 0.3% from a year ago to $457,800.
- The median price of a single-family home in Edmonton decreased by 7.6% year-over-year to $417,800 for June 2023. While in comparison, provincially, the median single home sale price was down 0.3% from a year ago to $512,500.
- Edmonton’s townhouse/rowhouse price decreased by 6.2% year-over-year to $230,000 for June 2023. While in comparison, provincially, the townhouse/rowhouse sale price is up 6.3% from a year ago to $343,600.
- The median condo price in Edmonton decreased by 0.4% year-over-year to $183,100 for June 2023. While in comparison, provincially, the median condo sale price is also up 8.6% from a year ago to $255,600.
- The median rent for a rental in Edmonton increased by 11.2% year-over-year to $1,300 for June 2023.
Edmonton Housing Market Outlook in 2023
As of June 2023, data from the Realtors Association of Edmonton (RAE) indicates that the average benchmark price of resale residential homes sold across Edmonton in June 2023 was $429,500, a slight increase of 1.8% compared to a month ago but still down 7.7% compared to a year ago.
“We continue to see market activity pick up as the days begin to warm up as average prices and days on market continue to improve month-over-month,” says Realtors Association of Edmonton 2023 Board Chair Melanie Boles. “I think it’s safe to say that the spring market is here and in full force.”
Detached homes averaged 46 days on the market, an eight-day decrease from February 2023. Semi-detached homes averaged 39 days on the market, decreasing 17 days from the previous month, with row/townhouses averaging 52 days on the market, a decrease of eight days month-over-month. Apartment condominiums averaged 60 days on market, showing a decrease of five days from February 2023. All residential listings averaged 49 days on the market, increasing by 15 days year-over-year and dropping eight days from February 2023.
Total residential unit sales in the Edmonton real estate market for March 2023 decreased by 44.6% compared to March 2022 but saw an increase of 42.1% from February 2023. New residential listings were down 22% year-over-year from March 2022 while also noting an increase of 32.3% from February 2023. Overall inventory in Edmonton was up 22.1% from March of last year and up 11.8% from the previous month.
|Month||Average Price||Units Sold||New Listings||SNLR||Market|
Over the last three months, Edmonton’s housing market has started inching closer to becoming a seller’s market. Edmonton’s quicker turnaround is likely related to much lower price points for first-time buyers to enter the market. Compared to Calgary, Edmonton remains much more affordable, where a typical household can afford to buy a bigger property compared to Calgary, even though earning $20,000 less in gross annual household income.
The sales to new listings ratio (SNLR) is the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market where buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 70% is considered a seller’s market.
Who’s Buying Edmonton Real Estate?
Until recently, the primary demographics driving demand in Edmonton’s residential property market were those looking to upsize their homes, foreign investors looking to purchase an investment property, professionals who recently immigrated to Canada in the past 5 years, and out-of-province migrants advancing their careers in and around Edmonton.
With the passing of the omnibus Bill C-32 legislation, including the foreign buyers’ ban and anti-flipping tax, the Edmonton homebuyers’ demographic may be shifting away from foreign investment. However, it remains to be seen whether efforts to limit foreign buyers in Edmonton will have an impact; according to Statistics Canada, foreign investors make up less than 5% of homeowners in Edmonton’s total homeownership. However, that number significantly jumps when considering properties bought by non-Alberta residents, especially in the province’s current boom.
Destinations for Edmonton’s tax mailouts last year offer a window into foreign property ownership, suggesting less than 1%of properties belong to those outside the country.
Most of the city’s property tax assessments were sent to Edmonton addresses in 2021, and nearly all were sent to locations within the province. Of the total 416,563 property tax notices, 91.7%of destinations (381,955) were in Edmonton, and 97.2%(404,888) were in Alberta, the most recent data available from the city show. Canadian addresses received more than 99% of notices.
Investors and multi-property owners accounted for over a third of homebuyers in 2021, particularly higher numbers in Ontario, British Columbia, and Nova Scotia. There were no specific numbers for Edmonton, but it can be implied that many Ontario and BC residents looking for affordable real estate investments will aim to purchase in Edmonton, where market rents are enough to cover the cost of carrying an investment property.
Upsizing by buyers has driven Edmonton’s demand for single-family homes, which showed the highest year-on-year price increase of all property types from $382,400 in March 2020, which is still more than 9% lower than today’s price at $417,800. Upsizing buyers continued to explode in some of Edmonton’s suburbs, like those in Spruce Grove, Leduc and Camrose.
Immigration & Out-of-province Migration
While the pandemic saw thousands of homebuyers leaving urban areas searching for more space and affordable housing, new immigrants are making Edmonton homes a continued surge. Many Ontarians, British Columbians, and residents from other provinces continue moving to Alberta – most relocating to Edmonton. According to this report by Re/Max, the federal government expects to bring an additional 2 million new immigrants to Canada – many of whom will still choose to settle in Alberta and Calgary.
Getting a mortgage in Edmonton as a first-time buyer can be less challenging than in many other large cities in Canada. Edmonton has slightly higher property tax rates than Toronto or Montreal, with over 0.94% of property value. However, the location and tax rates are much lower than the suburbs of Leduc (1.01%) and Camrose (1.10%).
While programs like the First Time Home Buyer Incentive are in place to help people afford homes in Edmonton, this has yet to do much to offset affordability as the stress test makes it harder to qualify. At the same time, the Bank of Canada keeps rates elevated – adding a barrier to qualifying for a home without a combined household income over $120,000.
Given the slowdown over the last 12 months in home prices, Edmonton remains a difficult market to purchase a first home without outside financial assistance.
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Edmonton Regional Housing Data June 2023
Edmonton’s housing market is slowly inching from a balanced to a seller’s market. The townhouse/rowhouse segment of the residential properties has already entered a seller’s market – likely due to its affordability relative to the space you get for that price point.
|Property Type||Sales||New Listings||SNLR||Average Price||Median Price||Market|
|Condo / Apartments||298||595||50%||$192,746||$170,000||Balanced|
Edmonton Rental Breakdown June 2023
Average rental cost comparisons between Edmonton and other municipalities in Alberta or nationally.
Each $100K in mortgage balance costs an average of $550 per month for principal and interest on the current insured fixed rate and $620 per month on the current insured variable rate. Rates used for calculation are those offered on insured purchases with less than a 20% downpayment over 25 years of amortization. Each 0.25% change in mortgage rates impacts the monthly payment by $14 to $16 on a 25-year amortization.
Edmonton Rental Prices Compared to Other Canadian Cities
As the table below shows, Edmonton is Alberta’s 3rd most expensive city for rentals and 23rd nationally.
|Province||Total||Bachelor||1Bdr Average||2Bdr Average||3Bdr Average||Total YoY Change|
|North York ON||$2,497||$1,657||$2,174||$2,706||$3,376||24.10%|
Alberta Rental Prices Compared to Canada and the Provinces
As the data below shows, Alberta is the most affordable province after Saskatchewan for rents among the provinces, with a population of over 1 million inhabitants.
Average Rents by Housing Type
|Province||Total||Bachelor||1Bdr Average||2Bdr Average||3Bdr Average|
Rental Growth by Housing Type
|Province||Total YoY Change||Bachelor YoY Change||1Bdr YoY Change||2Bdr YoY Change||3Bdr YoY Change|
Frequently Asked Questions
Is the Edmonton housing market going to crash in 2023?
Edmonton home prices are currently sagging a bit compared to last year’s surge in the housing market nationally due to the Bank of Canada’s rate hikes. Edmonton prices remain below average compared to the rest of the country, and with the current Bank of Canada rate hikes, mortgages have been harder to qualify for due to the stress test. Edmonton prices will recover quicker than in other areas once mortgage rates decline back to manageable levels for homebuyers to purchase or homeowners to refinance their homes.
Will Edmonton’s housing prices increase in 2023?
Although slightly increased already, many experts believe a bigger turnaround is imminent. Buyers are waiting on the sidelines for the opportune time to make a move. The market has already started to accelerate past balanced territory.
How do I get approved for a mortgage in Edmonton?
To get approved for a mortgage in Edmonton, look at Edmonton mortgage rates and see how much you can afford. This will give you an idea of what it will cost to buy a home in Edmonton at today’s prices and rates. You can check out what you need to get pre-approved for a mortgage or start by getting a quote.
Edmonton’s property market is set to remain strong as increases are expected for the remainder of 2023. The average home price in Edmonton is recovering quicker than in other areas around Canada. This comes after months of record consecutive price rises during the pandemic and one of the most intense periods of price appreciation last year.
While the property market appears to be recovering value in Edmonton, it’s important to remember that small volatility should be expected over the long term. It’s always a good time to buy a property if you’re a qualified buyer. Over the long term, expect property values to keep surging as immigration brings more buyers to the Canadian market.
If you are looking for a home in 2023, expect an imminent turnaround in the housing market over the next few months. Contact our knowledgeable and commission-free mortgage experts at nesto to help guide you through the home-buying process.
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