Edmonton Real Estate Market Forecast for 2025: What Buyers and Sellers Need to Know!

As we head into 2025, the Edmonton real estate market is already off to a busy start. After attending the Real Estate Forecast event put on by the REALTORS® Association of Edmonton, we wanted to share some key takeaways and our thoughts on what buyers, sellers, and investors can expect this year.

Looking Back at 2024

Before we jump into what’s ahead, it’s worth reflecting on how 2024 shaped up. Last year, we saw Edmonton's market perform stronger than many expected. The initial forecasts suggested home prices would increase by around 3-6%, but by year’s end, we saw growth in the range of 10-13%.

What drove this?

• High Demand: We saw a big influx of buyers, including many from out of province, alongside strong local interest.

• Low Inventory: The number of homes for sale simply couldn’t keep up with the demand, leading to multiple offers and bidding wars.

• Rising Interest Rates: Higher rates pushed many buyers toward more affordable options like townhouses and condos, which saw significant price growth.

Townhouses and entry-level homes were in especially high demand, offering buyers more space and value compared to apartments. Even condos, which had been fairly flat for the past decade, finally started to see some price gains.

What to Expect in 2025

Looking ahead, a lot of those same factors are still in play:

1. Demand Staying Strong: We’re still seeing a steady flow of people moving to Alberta, particularly from Ontario and BC, because of Edmonton's affordability.

2. Inventory Still Tight: We’ve already seen multiple offer situations early in the year. Homes in popular neighborhoods are selling quickly, sometimes with over a dozen offers in just a day or two. In January 2025, the REALTORS® Association of Edmonton reported 1,597 residential sales, up 11.2% from January 2024, while inventory was down 18.2% year-over-year.

3. Price Forecasts: The board is predicting more modest price increases this year:

   • Detached Homes: 2-3%

   • Semi-Detached: 3%

   • Townhouses: 2.5%

   • Condos: 0.5%

That said, if demand stays this high and inventory remains tight, we wouldn’t be surprised to see prices climb more than predicted—just like last year.

4. Interest Rates Leveling Off: The Bank of Canada recently made another small rate cut, bringing the variable rate to about 3%. While we may not see many more cuts, this stability is giving buyers more confidence.

5. Growing Interest in Surrounding Communities: More buyers are looking at places like Beaumont, Leduc, Spruce Grove, and Devon as they seek affordability and newer developments. These communities are growing fast, and competition is picking up there too. Beaumont was recently recognized as one of the fastest-growing communities in Canada.

Advice for Buyers in 2025

• Get Pre-Approved: Homes are moving fast, so having your financing in order is crucial.

• Be Ready to Act Quickly: With multiple offers becoming the norm, being prepared to make a decision can give you an edge.

• Work with an Experienced Realtor: Navigating this market takes skill, and having a trusted agent can make all the difference.

Advice for Sellers in 2025

• Price Smart: Even in a hot market, overpricing can hurt you. Homes listed at the right price often spark bidding wars, which can push your sale price higher.

• Take Advantage of Demand: With buyers competing for homes, you may have multiple offers to choose from, giving you more flexibility.

• Consider Listing Early: Spring is arriving earlier in the real estate market. Competition is already heating up, so listing sooner might help you get top dollar.

Rental and Investment Outlook

Rents are on the rise in Edmonton, driven by low vacancy rates and increasing demand. Investors are starting to see solid returns, and the city’s new zoning rules have made it easier to build multi-family properties like duplexes and fourplexes. If you’re thinking about investing, there are still good opportunities before prices climb higher.

Final Thoughts

The Edmonton market is shaping up to be another strong one in 2025. While prices may not jump quite as dramatically as last year, the demand is there, and inventory is still tight. Whether you’re buying, selling, or investing, being prepared and working with a knowledgeable realtor is key to making the most of this market.

If you’re thinking about making a move or want to chat more about what’s happening in the market, feel free to reach out. We’d love to help.

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Market data sourced from the REALTORS® Association of Edmonton 2025 Housing Forecast and Bank of Canada. Please contact us directly for the most up-to-date information.