‘Probably more activity than we’ve ever seen’: Edmonton real estate market remains busy and sees increases in fourth quarter

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The overall price of a home in Edmonton increased by 5% in the last quarter of 2021 to $428,400, as real estate demand continues to be very high in the city.

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Tom Shearer, an Edmonton-based broker and owner of Royal LePage Noralta Real Estate, said 2021 has been a busy year for the local real estate market and the momentum has continued into the new year.

“There was just a phenomenal amount of activity, probably more activity than we’ve ever seen here in this city,” Shearer said.

“It I think has a bit to do with low interest rates, a bit to do with people going down in value, so going a bit further into a bigger house because they don’t have no need to be close to work anymore because they work from home, and I think it has a bit to do with just wanting to have a lot of space around them.

Edmonton saw an 11.6 per cent increase, its biggest rise, in the price of a single-family detached home in the fourth quarter to $469,900, according to Royal LePage. Shearer said the increase in this specific type of home is due to affordable housing in the city.

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“When you can afford to buy a single-family home with a double garage, or with your own lawn or that bigger house, then you’re going to do it,” said Shearer, who added a similar home in Toronto could fetch $900,000.

Shearer said two demographic groups have driven Edmonton’s real estate market this year — baby boomers and millennials. He said baby boomers were moving on and downsizing, while millennials were starting to enter their active cycle of buying and selling.

He said the COVID-19 pandemic has also impacted the market, with more people spending time inside their homes.

Those looking to buy their next home should look into condominiums, Shearer said. The median price of a condo in Edmonton increased by 2% this quarter, reaching $193,600.

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Shearer said condominiums continue to be affordable and there are currently many great deals on the market, even in the downtown area.

“Eventually this pandemic will be over, eventually it will be difficult to get downtown and people will eventually want to be close to where all the action is, and I think the light at the end of that tunnel is vibrant downtown in this city and I think the earlier you get there the better,” Shearer said.

Shearer said Edmonton’s real estate market hasn’t gotten out of control like other areas and is currently a stable market in which to invest. He said it’s rare for one extremely busy year to be followed by another, but he’s seeing a similar amount of activity in the first weeks of 2022, compared to last January.

There are still big price tags in the Edmonton market, including a $7.5 million home on Ellerslie Road SW , a $6.225 million house in Windermere and one $5.299 million home on Keswick Boulevard SW .

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