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