Edmonton Housing Market Report
- The average price of a home in the Edmonton area reached an all time high of $420,507 for May 2023, a 2.5% yearly increase and a 2.9% monthly increase.
- Detached home average prices increased by 4.1% year-over-year and 2.3% month-over-month to $512,338.
- Semi-Detached home average prices decreased by 0.7% year-over-year and increased by 0.8% month-over-month to $381,968.
- Townhouse average prices decreased 4.3% year-over-year and 3.1% month-over-month to $253,417.
- Condo apartment average prices decreased by 8.1% year-over-year and increased by 0.3% monthly to $193,218.
Edmonton Housing Market Overview
Edmonton's average home price peaked at $417,465 in May 2022, and it declined by 13% to reach a trough of $361,172 in December 2022. Since the December trough, the average home sold price in the Greater Edmonton Area (GEA) climbed 16% to reach an all-time high of $420,507 in May 2023; this shows a 2.5% year-over-year increase and a 2.9% month-over-month increase.
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 the official inflation for this period is about 38%.
Condo apartment average prices decreased by 8.1% year-over-year and increased by 0.3% monthly to $193,218. Townhouse average prices declined 4.3% year-over-year and 3.1% month-over-month to $253,417. Semi-Detached home average prices decreased by 0.7% year-over-year and increased by 0.8% month-over-month to $381,968. Detached home average prices increased by 4.1% year-over-year and 2.3% month-over-month to $512,338.
The Edmonton area benchmark price of $378.8k is 0.5% higher than last month and 8.4% lower than last year. Looking at home categories in the Greater Edmonton Area, single-family detached homes' benchmark price was $433.8k for May 2023, a 7.9% annual decrease and a 0.6% monthly increase.
The benchmark townhouse price increased 1.3% month-over-month to $233.3k, representing a 7.2% yearly decrease. The benchmark price for condo apartments was $177.2k for May 2023, a 4.3% decrease year-over-year and a 0.6% monthly increase vs April 2023. Please note that Canadian Real Estate Association (CREA) has updated its benchmark definition in May 2023. As a result benchmark prices reported (recorded) over the past months and benchmark prices after May 2023 relate to slightly different houses.
The median residential sale price was $389,500 for May 2023, rising 0.9% over the last month while declining 3.1% relative to the previous year. Looking at the median sold prices for home categories in the Edmonton area, single-family detached homes had a median sale price of $470k for May 2023, a 1.1% annual increase and a 2.7% monthly increase. The median townhouse sold price of $250k represents a 4.2% yearly decrease and a 5.3% monthly decrease. Condo apartments sold with a median price of $174.9k for May 2023, decreasing by 7.7% year-over-year and falling by 1.5% monthly.
The three-year benchmark price growth of homes in Edmonton (as of April 2023), 9.5%, has been very modest compared to other major Canadian cities, most notably 38% for Toronto’s housing market, 27% for Vancouver’s housing market, 39% for the Hamilton-Burlington housing market, and 51% 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 May 2023, 2,719 residential homes, including 1,692 detached dwellings, 299 semi-detached, 369 apartments, and 359 townhouses, changed hands in the Greater Edmonton area.
The City of Edmonton's benchmark price of $371k is 0.7% higher than last month and 9.1% lower than last year. Looking at home categories in the City of Edmonton, single-family detached homes' benchmark price was $440k for May 2023, an 8.4% annual decrease and a 0.7% monthly increase. The benchmark townhouse price increased 1.4% month-over-month to $225k, representing a 9.1% yearly decrease. The benchmark price for condo apartments was $172k for May 2023, a 4.9% decrease year-over-year and a 1.1% monthly increase vs April 2023.
The Edmonton area's residential sales-to-new-listings ratio (SNLR) is 69%, and residential sales to inventory is 38%. These figures suggest a seller's market in the Edmonton area during May 2023.
If we annualize the 9-month inflation between June 2022 and March 2023, we arrive at a rate of 2.1%. Until a few weeks ago, markets extrapolated such a slowdown in CPI inflation. They expected successive cuts to the Bank of Canada's policy rate to start as early as 2023. Markets were forecasting Canada mortgage rates to decline fast.
But looking at inflation over the past nine months (July 2022 to April 2023), we observe that prices for services are rising at an annualized rate of 3.5%, while goods prices are rising at an annualized rate of 2.3%. Since July 2022, the aggregate consumer price index has risen at an annualized rate of 2.9%. This acceleration in inflation has postponed expectations for a decrease in mortgage rates, there is even expectation of rate rises in the short term. We expect this change in expectation (and mortgage rates) to have a cooling effect on housing markets over the next couple of months.
Home Prices in Edmonton
Greater Edmonton Area Housing Market Statistics for All Property Types in May 2023
Average Sold Price and MLS HPI Benchmark Price for GEA
Total Transactions in GEA
Market Overview for Detached Homes in May 2023
Average Sold Price
Market Overview for Semi-Detached Homes in May 2023
Average Sold Price
Market Overview for Townhouses in May 2023
Average Sold Price
Market Overview for Condo Apartments in May 2023
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.