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The average sold price of a home in Edmonton was $417,470 in April 2022. This is a 7.1% year-over-year increase and a 0.8% month-over-month increase vs March 2022. Similar to last month, this month the housing market broke an all-time price record for Edmonton. Despite these increases, Edmonton is still an affordable housing market compared to some other Canadian housing markets. Especially noting that Edmonton housing prices are not far off where they were seven years ago.

The MLS Home Price Index (HPI) Benchmark Price for Edmonton has also increased to $376,600, a record high. The last time that the benchmark price was over $350,000 (except for the last two months) was in May 2015, when the benchmark price was $351,400.

Looking at home categories, single-family detached homes had a benchmark price of $458,300 for April 2022, which is an 11% annual increase and a 2% monthly increase. The benchmark townhouse price increased 1.6% month-over-month to $222,600, representing a 4.6% annual increase. The benchmark price for condo apartments was $183,300 for April 2022, which is a 0.9% decrease year-over-year and a 1.6% monthly increase vs March 2022.

Looking at average sold prices for home categories, single-family detached homes had an average sale price of $511,000 for April 2022, which is an 11.5% annual increase and a 1.4% monthly increase. The average townhouse sold price increased 5% month-over-month to $409k, representing an 18% annual increase. Condo apartments sold with an average price of $237k for April 2022, which is a 3.6% increase year-over-year while a 3.3% monthly decrease.

While Edmonton broke an all-time price record this month, the annual price growth of homes in Edmonton has been relatively modest when 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. However, while Edmonton hasn’t had the same meteoric price growth as Toronto, Vancouver, or even Hamilton, Edmonton’s housing market saw a year-over-year increase in sales. The 2,919 home sales in April 2022 mark a 2% rise compared to April last year. Meanwhile, there were 4,719 new listings in Edmonton for April 2022, up 9% year-over-year.

The sales-to-new listings ratio (SNLR) is 62%, compared with the March of 2022 sales-to-new-listings ratio of 76%. That’s the same as 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's active inventory was 6,468 in April 2022, which equals 2.2 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 6.7% which is far above the Bank of Canada (BoC) target of 2%. Thus we expect two 50 bps interest rate rises by the BoC, together with the start of a quantitative tightening (QT) program. Such moves would further increase mortgage rates and thus act as a headwind for Canadian housing markets. A combination of the aforementioned factors over the past month has caused a drop in sales combined with a slow 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 has increased by $320,400 over the past year. This annual change in Toronto can buy a house in Edmonton.

Currently 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 close by. 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 Greater Edmonton Area (GEA) housing market.

Another tailwind for GEA real estate market arose from disruptions in the housebuilding supply chains. Such disruptions 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.

Calgary Commission Structure

Real estate commissions are the fees that home sellers pay to the seller and buyer real estate agents for their services. In Calgary, the total commission rate is structured as 7% for the first $100,000 of a home’s sale price and 3% on the remaining balance. Seller agents usually get half or 50% of this total commission with buyer agents getting the other half. To calculate your real estate commission for Calgary, see our calculator below. For other cities in Alberta, please visit our Alberta real estate commission calculator page for more information.

Inputs

Sold Price

$

Results

You will pay around...

$29,40029k

7%

on first $100k

3%

on remainder

Buying Agent Commission

$14,00014k

Selling Agent Commission

$14,00014k

5% GST

$1,4001.40k

The seller of the property will pay for both buying and selling agents' commission. For example, if the seller agent commission is 2.5% and the buyer agent commission is 2.5%, you will pay a total commission of 5%.

Calgary Real Estate Tools for Buyers and Sellers