Edmonton Real Estate Market Update: Mid-Year Insights for Investors

July has ushered in some notable trends in the Edmonton real estate market, presenting both opportunities and challenges for investors. As the summer heats up, here’s a comprehensive look at the current market dynamics and what they mean for you.

Market Overview

Average Home Price: The median home price in the Greater Edmonton Area has risen by 7.2% year over year from July 2023. Row and townhouses are leading the charge with a staggering 15.7% increase over the past year​​.

Population Growth: Alberta continues to experience robust population growth, leading the provinces with a 4.41% increase year over year. This growth is largely driven by interprovincial migration as people move from higher-priced housing markets like B.C. and Ontario, chasing affordability​​.

Rental Rates: The rental market remains strong, with rents increasing by 11% in the past year. The median rent in Edmonton is now $1,534, which is 23% lower than the national average, making it an attractive option for tenants and investors alike​​.

Key Statistics

• Average Home Price: $439K (All Residential), $539K (Detached), $422K (Semi-Detached), $290K (Row/Townhouse), $212K (Apartment Condominium)​.

• Median Home Price: $418K (All Residential), $495K (Detached), $410K (Semi-Detached), $290K (Row/Townhouse), $195K (Apartment Condominium)​.

• New Listings: 3,712 in June 2024, a 12.2% decrease month-over-month, but a 2.3% increase year-over-year​​.

• Sales: 2,847 in June 2024, an 11.4% decrease month-over-month, and a 10% decrease year-over-year​.

• Inventory: 5,950 active listings​​.

Investment Tips

1. Diversify Your Portfolio: Consider a mix of multi-family product styles and communities. This diversification spreads your risk and maximizes your potential returns.

2. Focus on High-Demand Areas: Areas that are growing or improving, easy access to main highways or transit, abundance of employers, and quality of life are ideal for investment.

3. Stay Informed: Keep up with local market trends and economic indicators to make informed investment decisions.

Strategies for Maximizing Returns

1. Renovate Smartly: Focus on high ROI renovations like updated kitchens and bathrooms, which attract tenants and increase property value.

2. Leverage Financing: Take advantage of low-interest rates to finance your investments and boost your purchasing power.

3. Professional Property Management: Consider hiring a property management company to handle tenant relations and maintenance, ensuring your investment runs smoothly.

Closing Thoughts

The Edmonton real estate market is full of opportunities this July, especially for savvy investors. Whether you're looking to buy your first property, expand your portfolio, or list a property for sale, our team is here to provide expert advice and support. Contact us today to discuss your investment goals and how we can help you achieve them.

Contact us here or reach out to your AOF rep if you have any questions or would like to schedule a call.

Once again, thank you for being a valuable part of our community.

Warm regards,

AOF Real Estate Team

Resources:

Rental Market Trends

ATB Economics Research Report

Alberta Population Statistics

Bank of Canada

Realtors Association of Edmonton