Edmonton Real Estate Market Update – February 2025

The Edmonton real estate market continues to experience significant fluctuations as we move into 2025. With a mix of price increases, rising new listings, and shifting sales activity, both buyers and sellers need to stay informed to make the most of the market. In this blog, we’ll break down the latest trends in Edmonton’s housing market for February 2025 and what you can expect in the coming months.

Market Overview: A Mixed Start to 2025

The overall picture of Edmonton’s real estate market as of February 2025 shows some mixed signals, but with generally positive signs for homeowners and sellers. While there has been a slight decrease in the number of homes sold compared to the same period last year, key metrics such as average sale prices, the number of new listings, and the time on the market have all shown strong growth.

   

Below Graphs Are Interactive.

Edmonton New MLS® Listings

The number of new listings in Edmonton has also seen a notable increase. In February 2025, 2.19K new listings were added to the market, reflecting a 6.88% increase compared to February 2024. This is part of a broader trend in Edmonton’s housing market, where new listings have increased by 13.56% year-over-year, with a total of 4.21K new listings year-to-date.

What Does This Mean for Buyers and Sellers?

For buyers, the increase in new listings is a welcome development. It provides more options in a market that has been increasingly competitive. However, with more homes entering the market, it’s important to move quickly when you find a property you like, as desirable homes may still be sold relatively quickly.

For sellers, the increase in listings means that competition is rising. While demand remains high, it’s essential to ensure that your home stands out in a crowded marketplace. Proper pricing, staging, and marketing strategies will be key to attracting the right buyers and securing a fast sale.

Average List Price Edmonton Real Estate Market

One of the most telling trends in the Edmonton real estate market for February 2025 is the strong increase in average list prices. The average asking price for homes in the city reached $496K in February 2025, marking a 9.12% increase compared to February 2024, when it was $456K. This steady rise in list prices is a key indicator of a market that is not only recovering but growing in value.

What’s Driving the Increase in Average List Price?

Several factors are contributing to the steady climb in Edmonton’s average list prices. From a high demand for homes to a limited inventory of properties, the reasons behind this price increase are multifaceted. Let’s break down some of the key influences:

1. Demand Outpacing Supply

One of the fundamental forces behind rising prices is the supply-and-demand imbalance in Edmonton’s real estate market. While the number of new listings is increasing (up 6.88% year-over-year), the inventory of available homes is still not enough to meet the strong demand. The demand for homes is driven by factors like:

• Population Growth: Edmonton continues to attract new residents, from young professionals and families to retirees. With its diverse economy, robust job market, and excellent amenities, more people are choosing Edmonton as their place to live, which increases demand for housing.
• Economic Growth: Edmonton’s economy remains strong, fuelled by industries such as oil, gas, technology, and services. This economic strength contributes to higher employment rates, more disposable income, and an overall increased demand for housing.
• Investor Activity: The real estate market is attractive to investors looking for rental properties. With rising rental rates and strong demand for rentals in the city, investors are eager to buy homes, contributing to upward pressure on prices.

2. Limited Inventory

While the number of new listings in Edmonton has increased, inventory levels are still lower than what is needed to keep up with demand. Many potential sellers may be holding off on listing their homes due to the market’s unpredictability, leading to fewer options for buyers. With fewer properties to choose from, those that are listed tend to command higher prices, as buyers are willing to compete for the limited supply.

• Low Housing Stock in Popular Neighbourhoods: Certain areas of Edmonton, particularly desirable neighbourhoods such as downtown, West Edmonton, and the River Valley, remain highly sought after. Homes in these areas are especially competitive, and this drives prices higher for both new and resale properties.
• New Construction Trends: The price of new construction homes has also risen. With building materials and labor costs increasing, new homes are being priced at a premium. This increase in new home prices directly affects the overall list price in Edmonton.

3. Interest Rates and Financing

While interest rates can fluctuate, they remain relatively favourable compared to historical averages. Low mortgage rates make homeownership more affordable for many buyers, which in turn fuels demand and leads to higher prices. Buyers are willing to stretch their budgets in order to take advantage of these rates before they increase, which has further contributed to rising asking prices.

• Pre-Approval and Mortgage Competition: More buyers are getting pre-approved for mortgages, increasing their purchasing power and allowing them to compete for homes at higher price points. Additionally, mortgage competition among lenders helps to keep rates relatively low, which sustains higher home prices.

4. The Attraction of Edmonton’s Market

Edmonton is known for its affordability compared to other major Canadian cities like Vancouver and Toronto. While prices are rising, they are still considered reasonable when compared to the cost of homes in other metropolitan areas. As more people are priced out of expensive cities, they are looking to Edmonton as a more affordable option with many of the same amenities, further driving the demand for housing.

What Does This Mean for Buyers?

For buyers, the increase in average list prices means that it’s essential to act quickly when you find a home that meets your needs and budget. With prices climbing steadily, it’s likely that homes will continue to become more expensive as time goes on. If you’ve been waiting for the “perfect” property, it may be time to adjust your expectations or budget to keep pace with the market.

Here are some tips for navigating a market with rising list prices:

• Get Pre-Approved for a Mortgage: With increasing list prices, having a clear understanding of your budget is more important than ever. Getting pre-approved for a mortgage will give you the confidence to make competitive offers when you find the right home.
• Stay Informed: Stay up to date on local market trends and price increases. Work with a real estate agent who has deep knowledge of the Edmonton market and can advise you on pricing trends and which neighborhoods are currently undervalued.
• Be Prepared for Competition: As demand continues to exceed supply, many properties will be sold quickly, and multiple offers are common. Be prepared to make quick decisions and potentially compete with other buyers to secure your home.

What Does This Mean for Sellers?

For sellers, the increase in average asking prices presents a significant opportunity. Homes are retaining their value, and the rising list prices reflect strong demand for properties across the city. If you’ve been considering selling, now could be an opportune time to list your home.

Here are some strategies to take advantage of the rising list prices:

• Price Competitively: While prices are rising, it’s important to price your home correctly. Listing too high can result in extended time on the market, while pricing your home too low may leave money on the table. Working with an experienced real estate agent will help you set the right price.
• Prepare Your Home for Sale: Homes that are well-maintained and staged tend to sell faster and for higher prices. Investing in some home improvements or staging can make a significant difference in how much you can ask for your home.
• Market Your Property Effectively: In a competitive market, it’s essential to make sure your property stands out. High-quality photos, virtual tours, and strong online marketing strategies are crucial for attracting potential buyers.

Looking Ahead: What’s Next for Average List Prices in Edmonton?

While predicting the future of real estate prices is always challenging, the upward trend in average asking prices indicates that Edmonton’s real estate market will continue to see price increases in the near future. The strong demand, limited inventory, and attractive financing options will likely keep home prices on the rise.

That said, it’s important to keep an eye on economic factors that could impact prices, such as interest rate changes, shifts in employment rates, or changes in government policies regarding housing. Buyers and sellers alike should remain informed about these external factors to better anticipate how the market might evolve.

Home Sales In The Edmonton Real Estate Market

In February 2025, Edmonton saw a 6.45% decrease in the number of homes sold compared to the same period in 2024. A total of 1.35K properties were sold, down from 1.44K in February 2024. While this represents a drop in the number of transactions, it’s important to keep in mind that the overall number of properties sold in 2025 is still relatively strong, with 2.62K properties sold year-to-date, reflecting a 3.76% increase from last year.

Several factors could explain this slight decrease in sales activity. Firstly, the time of year could play a role. Traditionally, the market tends to slow down in the winter months, with fewer people looking to move during this time. Secondly, rising prices may have priced some buyers out of the market, leading to a natural decrease in transactions. Despite this, the year-to-date figures show an upward trend, indicating that overall, the market remains active and healthy.

For buyers, the slight decline in sold properties could present an opportunity to enter the market, especially if you’re looking for less competition. However, homes that are priced well and in desirable areas will continue to attract strong interest.

For sellers, the market remains strong, especially with the price increases in the average sale price and asking prices. While the number of homes sold may have decreased, homes that are well-priced and marketed continue to see quick sales, especially with the average sale-to-ask ratio of 99.3%.

Edmonton Average Home Sale Price 

The most significant highlight of the February 2025 real estate market in Edmonton is the strong increase in average sale prices. The average sale price in February 2025 reached $422K, marking a 10.81% increase compared to February 2024, when it was $380K. This increase aligns with a broader trend seen throughout Edmonton’s real estate market in recent months.

Why Are Prices Rising?

The consistent rise in prices can be attributed to several factors:

• Demand Outpacing Supply: Despite the slight dip in sales, demand for homes in Edmonton remains high. New listings continue to rise, but inventory is still tight, particularly in popular neighbourhoods. This imbalance between supply and demand is one of the primary drivers of rising prices.
• Interest Rates: Although interest rates have seen some fluctuations in recent months, they remain favourable for buyers. This continues to encourage those who are in the market to purchase homes before rates rise further.
• Investor Activity: Edmonton’s real estate market remains attractive for investors due to its strong rental demand and relatively affordable home prices compared to other major cities in Canada. This interest from investors helps to keep prices elevated in certain segments of the market.
• Population Growth: Edmonton continues to experience steady population growth, bringing in new residents who require housing. As more people move to the area for work, family reasons, or lifestyle changes, the demand for homes increases, further driving up prices.

For buyers, the price increase means that entering the market may become more expensive as time goes on. It’s crucial to set a budget early, work with a professional to navigate the market, and potentially lock in financing before prices rise even further.

For sellers, this is good news as you’re likely to see a strong return on your investment if you decide to sell. Homes are retaining their value, and the increase in the average sale price suggests that you can expect to get closer to your asking price if your home is priced competitively and in good condition.

Ask-to-Sell Ratio: Homes Selling Close to Asking Price

In February 2025, the ask-to-sell ratio was 99.3%, meaning that homes are selling for just under their asking prices. This represents a 1.07% increase from the previous year, where the ratio stood at 98.9%. This higher ratio indicates that homes are selling closer to their asking price, signalling a competitive and healthy market.

What Does This Mean for Buyers and Sellers?

For buyers, it’s important to know that many homes are selling for close to or over their asking prices. This means that you’ll need to be competitive in your offers, especially in high-demand areas. Work with a skilled real estate agent who can help you craft strong offers that align with current market expectations.

For sellers, the higher ask-to-sell ratio means that you’re more likely to achieve your asking price. If your home is priced right and presented well, you’ll likely receive strong offers that come close to your initial asking price.

Edmonton Real Estate Market -Average Days 

In February 2025, the average number of days on market until sale dropped significantly. Homes are now selling in an average of 58 days, a 26.58% decrease from the 66 days it took in February 2024. This is a clear indicator that homes are moving faster, as buyers are more eager to secure properties in a competitive market.

Why Are Homes Selling Faster?

The decrease in days on market can be attributed to several factors:

• Increased Demand: As mentioned earlier, buyer demand remains high, which leads to quicker sales. Properties that are priced correctly and in desirable locations tend to sell faster, with multiple offers often driving up the pace of transactions.
• Pricing Strategy: Sellers are becoming more adept at pricing their homes correctly from the outset. Homes that are priced realistically are seeing faster offers, leading to shorter days on market.
• Condition and Marketing: Homes that are well-maintained, staged, and professionally marketed tend to sell more quickly. Buyers are more likely to make an offer on a property that looks move-in ready and is presented in the best possible light.

For buyers, this means that it’s critical to act fast. Homes are not staying on the market long, so when you find a property that fits your criteria, be ready to make an offer quickly.

For sellers, the decrease in days on market is a positive sign. Homes are moving faster, so you can expect to sell quickly if your property is priced right and in good condition.

Final Thoughts: Navigating Edmonton’s Real Estate Market in 2025

The Edmonton real estate market in February 2025 presents a mix of challenges and opportunities for both buyers and sellers. While the number of homes sold has slightly decreased, prices are on the rise, and properties are selling faster. With an increase in new listings, there are more options for buyers, but competition remains strong.

For buyers, it’s important to stay proactive and act quickly. With rising prices, homes may become more expensive, so moving sooner rather than later could help you secure the home you want. For sellers, the market remains favourable, with increasing prices and quick sales.

Looking to buy or sell in Edmonton? CONTACT CHRIS REID

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