Edmonton Housing Market Report
- The average price of a home in the Edmonton area was $361,172 for December 2022, a 5.4% yearly decrease and a 2.0% monthly decrease.
- Single-family dwelling average prices decreased by 1% year-over-year and increased by 0.6% month-over-month to $457,371.
- Rowhouse average prices increased 1.7% year-over-year and decreased 1.6% month-over-month to $356,822.
- Condo apartment average prices decreased by 4.6% year-over-year to $207,114 while it decreased by 4.4% month-over-month.
Edmonton Housing Market Overview
Edmonton is an affordable housing market compared to other large Canadian housing markets. Interestingly, Edmonton benchmark housing prices increased only 17% over the past 15 years, while official inflation for this period is about 32%. The average home sold price in the Greater Edmonton Area (GEA) was $361,172 in December 2022; this shows a 5.4% year-over-year decrease and a 2% month-over-month decrease.
The Edmonton area benchmark price of $373.2k is 0.1% lower than last month and 0.9% lower than last year. Looking at home categories in the Greater Edmonton Area, single-family detached homes' benchmark price was $423.3k for December 2022, a 0.3% annual decrease and an insignificant monthly decrease. The benchmark townhouse price increased 0.4% month-over-month to $229.0k, representing a 0.6% yearly decrease. The benchmark price for condo apartments was $176.5k for December 2022, a 3% decrease year-over-year and a 0.7% monthly increase vs November 2022.
The median residential sale price was $340k for December and $380k for the year 2022. Looking at median sold prices for home categories in the Edmonton area, single-family detached homes had a median sale price of $425k for December 2022, a 0.5% annual increase and a 0.8% monthly decrease. The median townhouse sold price of $340k represents a 2.9% yearly decrease. Condo apartments sold with a median price of $190k for December 2022, unchanged year-over-year.
The two-year benchmark price growth of homes in Edmonton, 6.2%, has been modest compared to other major Canadian cities, most notably 22% for Toronto’s housing market, 16% for Vancouver’s housing market, 19% for the Hamilton-Burlington housing market, and 21% for the London area housing market. This underperformance suggests the relative absence of speculation in the Edmonton real estate market, suggesting relatively ample house supply.
During December 2022, 973 residential homes, including 537 single-family homes, 315 condominiums, and 97 rowhouses, changed hands in the Greater Edmonton area.
The City of Edmonton's benchmark price of $365k is 0.4% higher than last month and 1.3% lower than last year. Looking at home categories in the City of Edmonton, single-family detached homes' benchmark price was $429k for December 2022, a 0.6% annual decrease and a 0.6% monthly increase. The benchmark townhouse price increased 0.5% month-over-month to $218k, representing a 2.9% yearly decrease. The benchmark price for condo apartments was $171k for December 2022, a 4% decrease year-over-year and a 0.6% monthly increase vs November 2022.
The average real estate sale price for the City of Edmonton was $357,333, compared with $379,811 and $376,404 in November and October, representing a monthly decrease of 5.9% and a two-month decrease of 5.1%. While the average residential sale price was $350k, representing a monthly decline of 4.2% and an annual decline of 7.5%.
In the City of Edmonton, the 712 home sales in December 2022 marked a 22% fall compared to last month while marking a 26% decrease compared to December 2021. Meanwhile, there were 952 new listings in the City of Edmonton for December 2022, down 37% from last month and 8.2% from last year.
The sales-to-new-listings ratio (SNLR) in the City of Edmonton is 75%. This SNLR suggests a tight market which contradicts what one might expect following historically rapid increases in Canada’s mortgage rates. Mortgage rate increases have taken their toll on buying power, but a shortage of new listings prevented a transition into a buyer's market. Most people are quite optimistic about their luck, and many potential sellers seem to be waiting for falling rates and rising prices again.
The city of Edmonton's active residential inventory was 3,913 units, a decrease of 22% compared with 5,012 units in November 2022, which equals 5.5 months of supply. This suggests that the Edmonton housing market is well supplied compared to this spring and many other Canadian housing markets. This level of supply is because of the low level of sale activity and despite a very low number of new listings coming to the market.
The headwind facing all Canadian housing markets is a rise in mortgage rates. CPI inflation in Canada is currently just under 7%, far above the Bank of Canada (BoC) target of 2%. The inflation rate has stayed above the target for seven quarters now. Thus the BoC has increased its benchmark rate from 0.25% to 4.25% over the past ten months.
The BoC has also started a quantitative tightening (QT) program. QT is just a technical term expressing that BoC stopped buying Government bonds, so maturing bonds would not be replaced, and the BoC's balance sheet would shrink. With help from QT, the BoC has reduced the size of its balance sheet by almost $92 billion since late January 2022. In other words, BoC has reduced the size of its balance sheet by 18% over the past 11 months.
These tightening moves by BoC have increased mortgage rates and thus acted as a headwind for Canadian housing markets. Over the past year, a combination of the above factors has increased Alberta mortgage rates and Edmonton mortgage rates which in turn caused a drop in sales and a decrease in prices for Edmonton homes.
Canada's six most important metropolitan housing markets are the Toronto housing market, the Montreal housing market, the Vancouver housing market, the Ottawa housing market, the Calgary housing market, and the Edmonton housing market. Among them, Edmonton has the most affordable housing market.
To put Edmonton’s housing affordability in perspective, note that Toronto's composite benchmark price between March 2020 and March 2022 increased by $497,000. With this two-year change in Toronto house prices, one can buy a relatively spacious detached house in Edmonton!
Currently, the Edmonton housing market faces a headwind and two tailwinds. Alberta's province possesses the fourth-largest oil reserves 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. Supporting 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 and the Alberta housing market. But uncertainty about the long-term prospect of the oil and gas industry might be a reason for the underperformance of the Edmonton housing market compared with other large Canadian cities.
Another tailwind for the GEA real estate market arose from house-building supply chain disruptions. 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 the Greater Edmonton Area
|Statistics for December 2022|
|Average Price:||$457,371||-1.0% from Dec. 2021|
|Units Sold:||537||-32.0% from Dec. 2021|
Townhouse Prices in the Greater Edmonton Area
|Statistics for December 2022|
|Average Price:||$356,822||-1.7% from Dec. 2021|
|Units Sold:||97||-41.9% from Dec. 2021|
Condo Prices in the Greater Edmonton Area
|Statistics for December 2022|
|Average Price:||$207,114||-4.6% from Dec. 2021|
|Units Sold:||315||-2.8% from Dec. 2021|
Greater Edmonton Area Housing Market Statistics for All Property Types in December 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 December 2022
Average Sold Price
Market Overview for Townhouses in December 2022
Average Sold Price
Market Overview for Condo Apartments in December 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.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
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.