Edmonton Housing Market Report
- The benchmark price of a home in Edmonton was $412k for May 2022, a 9.6% increase year-over-year, and a 0% monthly change vs April 2022.
- Single-family dwelling benchmark prices increased by 10% year-over-year and decreased by 0.2% month-over-month to $482k.
- Townhouse benchmark prices increased 8.6% year-over-year and 2.5% month-over-month to $249k.
- Condo apartment benchmark prices decreased by 0.8% year-over-year, and by 0.4% month-over-month to $185k.
Edmonton Housing Market Overview
Edmonton is still an affordable housing market compared to other large Canadian housing markets. Interestingly Edmonton housing prices are not far off where they were seven years ago. The average sold price of a home in Edmonton was $407k in May 2022; this is a 0.8% year-over-year increase and a 1.6% month-over-month decrease.
Looking at home categories in the city of Edmonton, single-family detached homes' benchmark price was $482k for May 2022, a 10% annual increase and a 0.2% monthly decrease. The benchmark townhouse price increased 2.5% month-over-month to $249k, representing an 8.6% yearly increase. The benchmark price for condo apartments was $185k for May 2022, a 0.8% decrease year-over-year and a 0.4% monthly increase vs April 2022.
Looking at average sold prices for home categories in the city of Edmonton, single-family detached homes had an average sale price of $499,400 for May 2022, which is a 4.8% annual increase and a 4% monthly decrease. The average townhouse sold price increased 2.5% month-over-month to $249k, representing an 8.6% yearly increase. Condo apartments sold with an average price of $185k for May 2022, a 0.8% decrease year-over-year and a 0.4% monthly increase.
The biennial price growth of homes in Edmonton has been modest compared to other major Canadian cities, most notably Toronto’s housing market, Vancouver’s housing market, Hamilton’s housing market, and London's housing market. In the Greater Edmonton Area, the 2,857 home sales in May 2022 mark a 4.4% rise compared to May last year, while marking a 1.6% decline compared to April. Meanwhile, there were 4,715 new listings in the Edmonton area for May 2022, up 4.4% year-over-year.
The sales-to-new-listings ratio (SNLR) is 61%, compared with March 2022’s sales-to-new-listings ratio of 76%. That’s close to the 62% SNLR seen in January 2022 but remains lower than the 86% SNLR in November 2021 and the 93% SNLR in December 2021. Edmonton area's active residential inventory was 7,548, an increase of 17% compared with 6,468 in April 2022, which equals 2.6 months of supply. This suggests that the Edmonton housing market is well supplied compared to other large cities in Canada, but it is a tight market by historical standards.
The headwind growing in front of the housing market is a rise in mortgage rates. CPI inflation in Canada is currently standing at 6.8% which is far above the Bank of Canada (BoC) target of 2%. Thus we expect a 75 bps interest rate rises by the BoC in July and further hikes after that, together with the continuation of the BoC’s quantitative tightening (QT) program. Such moves would further increase mortgage rates and thus act as a headwind for Canadian housing markets. Over the past month, a combination of the factors mentioned above has caused a drop in sales combined with a slower increase in prices for Edmonton homes.
The largest metropolitan areas in Canada are Toronto, Montreal, Vancouver, Ottawa, Calgary, and Edmonton. Among them, Edmonton has the most affordable housing market. To put this affordability in perspective, note that Toronto's composite benchmark price between March 2020 and March 2022 has increased by $497,000. This biennial change in Toronto can buy a relatively spacious detached house in Edmonton!
Currently, the Edmonton housing market faces a headwind and two tailwinds. The province of Alberta possesses the fourth-largest reserves of oil in the world after Venezuela, Saudi Arabia, and Iran. Most of Alberta's oil reserves are in the northern part of the province, where Edmonton is the only major city. Support for oil and natural gas extraction and transportation activities creates many jobs in Edmonton. Thus when energy prices are high more income is distributed among residents of Edmonton, and high oil prices act as a tailwind for the Greater Edmonton Area (GEA) housing market.
Another tailwind for the GEA real estate market arose from disruptions in the house building supply chains. Such troubles, together with a labour shortage in the construction industries, have delayed the completion of construction projects. This reduction in the supply of houses is acting temporarily as a tailwind for the real estate market.
Home Prices in Edmonton
Single-Family Detached Home Prices in Greater Edmonton
|Statistics for May 2022|
|Average Price:||$492,037||5.7% from May. 2021|
|Units Sold:||1,736||-3.6% from May. 2021|
Townhouse Prices in Greater Edmonton
|Statistics for May 2022|
|Average Price:||$395,783||10.5% from May. 2021|
|Units Sold:||345||5.2% from May. 2021|
Condo Prices in Greater Edmonton
|Statistics for May 2022|
|Average Price:||$239,011||-1.2% from May. 2021|
|Units Sold:||720||28.6% from May. 2021|
Greater Edmonton Housing Market Statistics for All Property Types in May 2022
Average Sold Price and MLS HPI Benchmark Price for GEA
Total Transactions in GEA
Property Type Distribution in GEA
Market Overview for Detached Homes in May 2022
Average Sold Price
Market Overview for Townhouses in May 2022
Average Sold Price
Market Overview for Condo Apartments in May 2022
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
Data sourced from the RAE 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.