The REALTORS® Association of Edmonton (RAE) recently released their annual housing forecast for 2024. To sum it up in a few words? The 2024 outlook for the Edmonton housing market is: “positive,” “stable,” “balanced,” and “blue skies ahead!”
Find out what the experts had to say about price trends, sales forecasts and the potential factors that could dramatically shift the Edmonton market from balanced to a seller’s market in 2024.
Edmonton housing market: Price trends for 2024
Driven by migration, employment, and a positive economic outlook, the Edmonton housing market will see a boost in the number of new listings, overall sales, and prices in 2024.
The average price across all types of housing is expected to increase by 1.2 percent overall. The price of a detached home in Edmonton in 2024 is expected to increase modestly by 1.0 percent to $497,000. Semi-detached home prices in Edmonton are expected to average $377,000 while townhouses and condo prices in Edmonton are anticipated to increase to $261,000 and $192,000 respectively.
The RAE also anticipates that the number of listings will increase 4.6 percent in 2024. Overall, the outlook is more positive than last year. In 2023, the outlook was tempered by uncertainty particularly around the effect of higher interest rates on sales and prices.
Migration, interest rate drops could shift Edmonton to a seller’s market in 2024
The past couple of years have seen record interprovincial and international migration in Alberta, specifically within the province’s largest cities: Calgary and Edmonton.
Over the past 20 years, the overall population growth in Edmonton has averaged 2.3 percent. In 2022 it was 3.1 percent and even higher in 2023, with the rate expected to remain strong into 2024 as well.
While continued migration into Alberta is expected to remain strong, just how strong is hard to predict. And with house prices in Edmonton more affordable than Calgary, more people may turn to Alberta’s capital city as a more affordable option.
A dramatic influx of people above and beyond expectations could put higher pressure on inventory. High demand and low supply could tip the Edmonton housing market from a balanced market to a seller’s market in 2024.
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The Bank of Canada has hinted interest rate cuts are coming in 2024
Another variable that could spike demand is a reduction in key interest rates. In its first policy announcement of 2024, the Bank of Canada held rates at 5 percent for the fourth time.
The BoC hinted that rate cuts could be coming this year, but has not given any indication when that might happen. If it happens sooner rather than later, it could line up with real estate’s busy summer season and could bring even more buyers into the market. There are plenty of potential buyers who have been impatiently waiting on the sidelines until borrowing costs come down.
Thinking of buying or selling a home in 2024: Get a head start!
Don’t let the snow-covered ground fool you! When it comes to real estate, sometimes the early bird really does get the worm!
With the prospect of a spike in the number of listings in the Edmonton housing market in 2024, it makes sense to get out there early and take advantage of the upswing in momentum sooner rather than later.
If you’ve been waiting for a sign that it’s time to get back into the market: this is it! Now’s the time to get ready and beat the summertime rush. Potential buyers can take advantage of price stability before the season ramps up. Sellers will get more eyes on their listing before more listings flood the market.
Now is the time to research real estate agents and find an experienced REALTOR® who can help you with the home buying or selling process.
With nothing but blue skies ahead, there’s so much to look forward to and we can’t wait to work with our clients to bring their home ownership dreams to life!
Wally has 20 years of experience in the Edmonton housing market. Call/text him at 780.238.7384 to get started today.