February 2025 Edmonton Area Real Estate Market Update

The first month of 2025 is already over, and somehow I still can't believe we are this far into the new year already. However, 2025 has already started off with momentum that 2024 left us with as the early spring market begins.  As we know, 2024 was one of the record years, and even with the speed in the market that we saw last year, we brought to market and sold more than 10% more listings in January than this time last year. December was a slow month with new inventory coming to market; however, with nearly double the listings in January compared to December, it hardly made any difference to the overall number of homes available by the end of the month. I will note that a lot of the new listings in January are due to homes re-listing during the first week of January, which is why we primarily saw inventory stay much the same.  Home prices have already started their upward climb in January in every category except for apartment condominiums, which saw a pullback of just over 5% from December. This led the overall market to have a slight decline; however, there is still between 2.4% and 9.7% increases from December everywhere else, which has led to an overall market increase of 7.1% from last January and has hit as high as 20.3% in townhomes from this time last year.  Because homes started to sit on the market over the holidays, the majority of sales in January ended up selling with a higher average days on market than we are used to, up to 48 days across Edmonton, which ranged between 37 days for semi-detached and row/townhomes and up to 57 days for apartment condominiums. This is still down almost 20% from last year as the first month of the year always experiences higher averages, which shows again the momentum we are starting 2025 off with.  2025 is going to be an interesting year with many pros and some uncertain factors that could change the trajectory of our market this year.   If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact  

January 2025 Edmonton Area Real Estate Market Update

What a year 2024 was—a roller coaster with the market, home prices going up, interest rates coming down, and so much more! 2025 is upon us now, and it seems like we have an exciting year ahead. But first, let’s do a quick recap of how 2024 ended. My January issue is always one of my favorites to publish, as it allows us to see one full calendar year of progress in the market without combining 12 months across two calendar years. The big question in Edmonton real estate is: How much are prices going to go up, and how busy is the market right now? I prefer reporting the median home price change instead of the average price change, as averages can often be more volatile—skewed by a higher number of low-priced homes or luxury homes sold in a given period. Across the Greater Edmonton Area, 2024 saw a 16.4% increase in prices across all home types over the last 12 months. This breaks down into four major categories: 13.1% for detached single-family homes, 14.0% for semi-detached half-duplexes, 13.1% for row/townhomes, and 12.9% for apartment condos. Across the board, we also sold more homes in 2024 than in the previous year, with a 17% increase in sales. However, fewer homes were listed compared to 2023, meaning there was significantly less supply available on a per-buyer basis, which increased pressure on buyers. At the end of the year, only 3,496 homes were available for sale. With 1,428 homes selling during the same period, this equates to less than 2.5 months’ worth of inventory, indicating a seller’s market during one of the slowest periods of the year. Amid this increased pressure, homes sold significantly faster in 2024, with the average time to sell at year-end being 44 days, down from 52 days at the end of 2023. So, how does this data impact 2025? Let’s consider how we started 2024. There was uncertainty in the market: Would interest rates stay the same or come down? Would the many people who moved to Edmonton from other cities end up buying homes or continue to rent? Would we see a significant price increase this year? Now, with hindsight, we have answers to all those questions. Starting 2024 in a much lower and more uncertain place, we still ended the year with 16.4% home price increases and much higher demand. If we’re entering 2025 with the momentum of 2024—momentum that we didn’t have to the same degree last year—it’s reasonable to suggest that we may continue on the same trajectory. There haven’t been any indicators to suggest the course set in 2024 will change significantly. If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact

December 2024 Edmonton Area Real Estate Market Update

The countdown to Christmas and the holiday season is on for many people. Now, after a surprising turnaround in October, how has the market responded as we dive into winter and the snow across the city? November started to trend back into its winter hibernation for the next couple of months as we saw a slowdown across the market. Homes are taking longer to sell, and the ones to eventually sell end up going for prices lower than homeowners were initially hoping for. For this time of year, this isn’t a surprise in our market. The average home is taking just over 40 days to sell, which is up about 40% from the peak of the market earlier this year. Home prices dipped about 1% from October, and new listings and sales were down by 23% and 26%, respectively. However, looking back across the last 12 months, we do show what a strong market we have seen with home prices up nearly 14%, with the high riser going to apartment condos at just over a 19% increase from November 2023, which I never would have expected if you had asked me last year. Amid all of the typical seasonal slowdowns this time of year, the amount of inventory and homes for sale remains quite low, with just over 2 months of supply available at any given time, which has kept things feeling like a seller’s market even though the overall demand has slowed across the market. I expect things to keep steady over the next 4-6 weeks into January before starting to get a pulse on the 2025 market, which I am told by people much more qualified in macroeconomics that Edmonton should be tied for 1st place across Canada in home price appreciation, which is only a result of the continued demand on this city. If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact

November 2024 Edmonton Area Real Estate Market Update

What a roller coaster this fall has been in the real estate market. Just as things started to slow down for the fall/winter season, we were delivered a massive rate cut as the government grapples with the economy. So, did it actually make a difference? Up until October, the recent downward shifts in the interest rate environment have had minimal effect on us in Edmonton. We had a busy spring, followed by an elevated summer and then some return to a slower period in August & September. However, it isn't every year that we see sizeable upticks in the market come October like we saw this year, with 10.5% more homes selling in October compared to September, which is up a whopping 38.5% from October 2023!  This uptick, in combination with 6% fewer homes coming to market, the amount of active homes available falling by over 10%, resulted in an interesting situation with prices remaining flat in October. Detached and semi-detached homes remained unchanged. Apartment condos fell by 4.7%, however, townhomes took another rise up with a 7.6% increase in median prices in just one month, putting its year-over-year record to 23.3% from October 2023.  October still isn't anywhere near the height of the market March-May of this year, but there was most certainly a noticeable uptick in sales right after the rate drops were announced. Where could this trend go from here? October may have been a blip in the market; however, if this continues into November without a substantial decrease in activity, we may see an elevated winter market before seeing spring pick up again, which will likely put us in a position for a busy spring come 2025, especially if the rumoured interest rates continue to fall.  If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact