March 22, 2024

Your Guide to Navigating Edmonton’s 2024 Housing Market

By Cantiro Homes

As one of Canada’s most vibrant cities, Edmonton’s real estate scene is ever-evolving, and 2024 shows no signs of slowing down. Whether you’re new to Edmonton or seeking to deepen your understanding, read on to explore Edmonton’s thriving real estate market!

Edmonton’s River Valley

What is the State of Edmonton’s Housing Market?

Currently, Edmonton’s housing market is in a good place – there’s a nice balance between the number of homes for sale and the number of people looking to buy. But things could shift soon. As the economy continues to grow and interest rates are anticipated to drop later in the year, demand for Edmonton’s affordable homes will increase. This could lead to a situation where sellers have the upper hand, making it a bit tougher for buyers to find what they’re looking for.

how has Alberta’s Population Growth made an Impact on Housing?

Since October 1st, 2023, Alberta has been seeing a remarkable increase in its population, with more than 10,000 people moving here from other provinces for five straight quarters – a trend never seen before since comparable data was made available in 1971. In just the first three quarters of 2023, over 45,000 people have decided to call Alberta home!

One of the main reasons for this surge is that housing in Alberta, especially in Edmonton, is more affordable compared to other places in Canada. Plus, with no provincial sales tax and some of the lowest income tax rates in the country, your money goes a lot further here.

As more newcomers settle into Edmonton, the demand for housing options will keep growing across the city and throughout the province.

Net population movement for Alberta (July 1 to September 30, 2023)

Is Edmonton Considered affordable?

In Edmonton, finding your dream home is more affordable than you might think! Compared to larger cities like Toronto and Vancouver, where prices can be sky-high, Edmonton offers a much friendlier price tag for homebuyers, making it an attractive option for both first-time buyers and those looking to invest in property. Additionally, the city offers a diverse range of housing options, from townhomes and single-family homes to condominiums, catering to various budgetary needs.

The RBC Housing Affordability Measures show the proportion of median pre-tax household income required to service the cost of mortgage payments (principal and interest), property taxes and utilities. At (36.7%) in the third quarter of 2023, Edmonton is the most affordable major market in Canada.

So, if you’re ready to find your perfect place to call home without breaking the bank, Edmonton is the place to be!

Average Home Sold Price for January 2024 (resale + new construction)

Source: wowa.ca

does Inflation & Interest Rates have an Impact?

Undoubtedly, one of the biggest hurdles for homebuyers right now is dealing with higher inflation and interest rates. These rates are playing a huge role in shaping Canada’s housing market for 2024. Currently, with interest rates at their highest point in twenty years, many potential buyers are finding it difficult to afford a home.

However, there’s some hope on the horizon. There’s talk of interest rate cuts happening around mid-year, which could kickstart the market again, possibly even sooner. But, keep in mind, there’s a backlog of eager buyers waiting for their chance, so things could heat up fast.

The Bank of Canada predicts inflation will continue to drop to about 2.5% by year-end, and the first rate cut might happen as early as June. This could ease the financial strain for many who are finding things more difficult. Already, some mortgage rates are starting to fall, resulting in more buyers jumping into the market.

Should we Anticipate Housing Prices to increase in 2024?

As Edmonton’s housing market keeps changing, many are wondering: will home prices go up in 2024? It certainly looks like things are heading that way. With record-setting sales anticipated for 2025 and a notable 46.8% year-over-year increase in residential unit sales for the month of January, the market appears to be demonstrating growth.

So, what next?!

The future looks bright, and with everything we’ve talked about, there’s no better time for buyers to act now! Quick possession homes and those already being built are seeing a higher demand.

With the improving economic conditions driving the demand for housing, purchasing now means you’ll start building equity faster.

Contact our dedicated sales team today to discover more about our available homes and start your journey to Edmonton living!