Edmonton Housing Market ReportWOWA Trusted and Transparent
Report Updated: January 11th, 2020
December marks the end to an eventful year in Edmonton's real estate market. Despite the impact of COVID-19, total sales in the Greater Edmonton Area in 2020 rose by 2.94% compared to 2019. 679 single-family detached homes were sold in December for an average of $428,900 and a median of $400,000. 259 condo apartments were sold for an average of $217,843 with a median of $192,000. 143 semi-detached/townhouses/row properties were sold for an average of $331,034 and a median of $322,000.
Like Calgary's housing market, condo apartments remain in oversupply compared to detached and semi-detached properties. Despite increased sales volume, prices have fallen by 4% year-over-year for condos compared to minor increases for other property types. The same dynamics are at play in Toronto's housing market where demand has shifted towards larger properties, leaving a weaker market for condo apartments.
Despite these setbacks, a rapid increase in money supply with the Bank of Canada's promise to continue quantitative easing and low interest rates into 2021 is likely fueling additional housing exuberance and speculation. In addition, Prime Minister Justin Trudeau and the Federal Government have announced the extension of the Canadian Emergency Wage Subsidy until 2021. As a result, asset price inflation is likely to continue as money pours into the economy through both monetary and fiscal policy.
Home Prices in Edmonton
Edmonton Housing Market Statistics for All Property Types in January 2020
Average Sold Price and MLS HPI Benchmark Price
Property Type Distribution
Impacts on Mortgages and Mortgage Rates
Due in part to the continued growth in real estate as well as loose monetary policy, mortgage lenders, including members of the Big Five (RBC, TD, CIBC, Scotiabank, and BMO), are increasingly willing to discount risk in the housing market and are offering record-low mortgage rates. Although this highly-competitive market may not last past the end of 2020, mortgage rates are not expected to rise significantly by 2022.
Housing Markets Across Canada
Market Overview for Detached Homes in January 2020
Average Sold Price
Market Overview for Semi-Detached Homes in January 2020
Average Sold Price
Market Overview for Condo Apartments in January 2020
Average Sold Price
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Housing Markets Across Canada
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Data sourced from the REALTORS® Association of Edmonton and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.