Edmonton’s Real Estate Market Outlook For 2021

Good news, Edmonton! The Edmonton real estate market will continue to benefit from high-demand, low-interest rates and steady home prices in the year ahead.

Edmonton’s Real Estate Market to Remain Balanced

According to experts, Edmonton’s real estate market will remain balanced throughout 2021. Despite market uncertainty in 2020 due to the COVID 19 pandemic, average home prices increased 1% from $361,152 in 2019 to $364,820 (2020). Our outlook for 2021 sees yet another (minor) increase of 2% in average sale prices to $372,116, a key indicator home buyer demand in our city continues to remain strong.

Who’s Buying Real Estate in Edmonton

Move-Up Buyers – Move-up buyers are currently the driving force behind home buyer demand in Edmonton, a trend that is expected to continue over the next twelve months. Young couples looking to take advantage of record-low interest rates, low property values, larger square footage, yard space, office space (as a result of the shift to working from home) and finished basements make up the majority of move-up buyers.

Check out our previous post: 9 Ways to Tell You’ve Outgrown Your Current Home

First-Time Buyers – Secondary to move-up buyers are first-time home buyers also looking to benefit from low-interest rates and property values. Spending an average of $300,000 per property, first-time buyers have been purchasing across all home styles. Edmonton’s affordable home prices, combined with a median first-time buyer income of approximately $94,000, have created favourable conditions for those looking to enter the market in search of their first property.

See also: Struggling to Save for a Down Payment? These First-Time Buyer Programs Can Help

Edmonton’s Most Popular Property Types 

Luxury Homes – Move-up buyers are also driving the demand for luxury homes in Edmonton, with luxury prices in the capital region averaging approximately $1,000,000. Many of these properties include high-end penthouses, eye-catching new infill and fully renovated character homes. Equipped with large lots (often accompanied by ravine, river valley or private, natural views), mature landscaping, quiet-tree lined streets, and well-established amenities, luxury buyers continue to receive ample value for their investment.

Download your free guide: Edmonton’s Top Infill Communities

Condominiums – Edmonton’s condominium market is also a popular choice among first-time buyers, single homebuyers and younger couples. A steady drop in condo prices (now at $222,181) towards the latter half of 2020 has also made these units an affordable choice, particularly apartment-style condos where supply continues to outnumber demand.

See our previous post: Three Affordable Home Styles For First-Time Buyers

Affordable New Construction Homes 

Here again, because current buyer demand for larger, single-family homes (both suburban and infill) continues to rise, inventory for new construction homes, including single-family models, duplexes and townhomes (with yard and office space) remains undersupplied. The surplus of new construction apartment-style condos has also contributed to the downward trend of Edmonton’s average condo pricing.

Should You Buy a New Construction Home or a Pre-Owned Home? Here are a few things to consider. 

Edmonton’s Best Neighbourhoods 

Edmonton’s most popular neighbourhoods in 2020 consisted of the Southwest Zone, North Central Zone and West Anthony Henday Zone. These areas are expected to remain popular throughout 2021, with particular focus on the following neighbourhoods:

1. Downtown Edmonton

Edmonton’s popular downtown core, known for its multi-story apartments and condos, divided among five major districts: The Commercial core, Rice Howard Way, the Warehouse District, Government Centre and McKay Avenue

Average Price: $452,000

2. Cromdale

Located just moments away from downtown, Cromdale remains one of central Edmonton’s oldest neighbourhoods. While apartment-style low and high-rise condos dominate the area, there are several newer, single-family home options available.

Average Price: $287,000

3. McCauley

Located just 10 minutes north of downtown, McCauley features a variety of updated, single-family character properties and infill homes, apartment-style condos (including high-rise units) and duplexes. Significant revitalization efforts have led to an increase in both buyer demand and property values.

Average Price: $609,000

4. Prince Rupert

Yet another one of central Edmonton’s highly sought-after neighbourhoods, Prince Rupert consists predominantly of single-family homes. These include recently updated post-war bungalows as well as front and rear-detached two-storey models. There are also a few apartment-style condo options throughout the community. 

Average Price: $670,000

5. Boyle Street

Boyle Street is home to the highest concentration of old/historic buildings Edmonton has to offer. Featuring endless charm and character, this neighbourhood also includes a high concentration of affordable apartment-style condos, as well as a few single-family homes, duplexes and townhomes.

Average Price: $353,000

6. Strathcona

Revered for its art, culture and vibrant nightlife, Strathcona continues to attract homebuyers across various lifestyles and price points. The neighbourhood’s popularity is reinforced by the diverse range of home styles available throughout the area, including both character and infill single-family homes, apartment-style condos, and townhomes.

Average Price: $516,000

7. Woodcroft

A great place to find an affordable single-family home! Tucked away in a quiet corner of Northwest Edmonton, Woodcroft is a prime choice for growing families in search of the perfect “all-in-one-neighbourhood.” Recently renovated 1950s character homes reign supreme in this established community, but there are a few duplex, townhome and low-rise apartment condo options to choose from.

Average Price: $408,000

8. Spruce Avenue

Extremely amenity-friendly, Spruce Avenue is a mature community offering a wide range of single-family home styles. Upgraded, character bungalows account for much of the real estate in the area. However, due to its highly desirable location, the community is also seeing a rise in contemporary new infill properties, including townhomes.

Average Price: $420,000

9. Summerlea

Home to the famed West Edmonton Mall, Summerlea provides an even blend of residential real-estate and desirable neighbourhood amenities. Home styles in the area consist mainly of low-rise apartment-style condos and townhomes, but there are single-family style home options scattered throughout.

Average Price: $282,000

10. Parkdale

Parkdale is situated in north-central Edmonton, just ten minutes drive from city centre. With the majority of residences being constructed before the 1960s, Parkdale is a mature neighbourhood known for its single-family homes (older and infill) and its high and low-rise apartment-style condos.

Average Price: $300,000

See our Best Places to Live in Edmonton: Part 1 for more information 

Looking Ahead 

In summary, experts predict Edmonton’s housing market will remain healthy and strong regardless of any transitional ups and downs over the last 12 months. Move-up buyers will continue to drive real estate market demand, with an emphasis on single-family homes, followed by first-time buyers also looking to capitalize on affordable home prices (especially apartment-style condos) and low-interest rates.

Are you thinking about purchasing a home in the Edmonton area? Get started with our Dream Home Finder and Buyer Resources. Or, If you’re thinking about selling, find our much is your Edmonton home worth with our Free Home Evaluation!

Related: 

·        Home Buying and Selling During COVID-19

·        Three Affordable Home Styles For First-Time Buyers 

·        Sometimes Even the Best Homes Don’t Sell 

2021 Edmonton Real Estate Market Outlook as provided by RE/MAX

Photo credits: shutterstock.com

Categorised in: Real Estate Market

This post was written by Terry Paranych Real Estate Group