Edmonton Real Estate Market Update – August 2024 Review

As we look back at the August 2024 real estate market in Edmonton, several important trends are shaping the current landscape for both buyers and sellers. Here's a detailed recap of the key highlights from the past month, offering valuable insights into what's happening in Edmonton's hot market.

Multiple Offers on Retail Listings

The retail side of the market has seen a significant increase in competition, especially for properties with legal basement units or the potential to add one. These homes are in high demand due to their income-generating possibilities, with many going into multiple offers. In some cases, properties are selling well above the asking price. One of our buyer clients, for example, was involved in a bidding war where the property sold $60,000 over the list price. While this may not be the norm for every listing, it's a sign of increasing competition in the market.

Rising Home Prices and Limited Comparables

We've noticed that prices are climbing, with fewer comparables available, especially for homes with legal suites or the potential to add one. In many cases, sellers are opting to install legal basement units before listing their homes, significantly increasing the resale value. This trend reflects Edmonton's unique position as one of Canada's last affordable markets, drawing buyers from across the country.

The Growing Demand from Out-of-Province Buyers

A striking trend this summer is the influx of out-of-province buyers relocating to Alberta. The province has added a record-breaking 188,000 people in the past year, compared to the previous record of 72,000 in 2013. As a result, homes are being pushed into multiple offer situations, and buyers are having to move quickly to secure properties. If you're actively looking to buy, now is the time to act before the market heats up even further in 2025.

Predictions for Spring 2025

If you're a seller, spring 2025 is shaping up to be an ideal time to list your property. Interest rates are expected to drop, and the demand for homes will likely surge. While it's a seller's market now, holding off until spring could maximize your return on investment. However, if you're in a position to sell now, it's still a great time, with many homes receiving offers at or above list price.

Investor Opportunities in Edmonton

For real estate investors, the outlook is equally promising. With interest rates expected to drop further, the window for securing attractive financing options is opening up. New construction is particularly appealing, as buyers can lock in lower interest rates by the time their properties are completed in 10 to 12 months. Investors who are already holding properties are also seeing stronger rental returns due to the increasing demand for rental units in Edmonton.

Rental Market Surge

Edmonton's rental market is thriving, thanks to the population growth and high demand for rental properties. Whether it's a legal basement suite or a garage suite, rental units are filling up quickly, often within the first week of being listed. Rents have risen significantly over the past year, providing landlords with the opportunity to increase their rental income. However, many landlords are choosing to balance rental increases with tenant loyalty, particularly if the tenants have a positive rental history.

Final Thoughts

Edmonton's real estate market is set for continued growth, making it an excellent time for both buyers and sellers to strategize their next move. Whether you're looking to buy, sell, or invest, now is the time to act before the market becomes even more competitive.

For those interested in exploring real estate opportunities, our team is here to help. Visit AOFteam.com to schedule a discovery call with one of our expert agents.

Bold Prediction: Spring 2025 will be a game-changer for Edmonton's real estate market. If you're planning to buy or sell, now is the time to prepare and make strategic decisions that will benefit you in the long run.