Edmonton's luxury real estate market is gearing up for another strong year, showing optimism as it heads toward 2025. The past year has proven to be significant for luxury home sales, with numerous high-end transactions indicating increased demand.
Ron Dickson, the senior vice-president of Sotheby’s International Realty Edmonton, stated, “People can move from Toronto to Edmonton and upgrade their home quite substantially.” It’s no wonder many are considering the move, since Edmonton’s luxury market offers extra value, particularly at the $1 million-plus entry point.
Comparatively, the Greater Toronto Area (GTA) has seen luxury sales rise significantly. According to Sotheby’s Top-Tier Real Estate: 2024 State of Luxury Annual Report, sales there started at $4 million and grew 21% throughout 2024. While the GTA's rebound is promising, Edmonton's market isn’t included in these statistics, yet it offers unparalleled value for buyers.
The Greater Edmonton Area, inclusive of locales like Sherwood Park, recorded 414 sales for single-family detached homes priced between $1 million to $1.5 million, according to the Realtors Association of Edmonton (RAE). An additional 136 homes sold for over $1.5 million, featuring notable transactions of six properties exceeding $3.5 million. Overall, 561 luxury sales took place last year, marking approximately 47% growth year over year.
Don Kottick, president and CEO of Sotheby’s International Realty Canada, commented, “The Edmonton market had a great 2024 right up there with Calgary,” which remains Canada’s top luxury market by percentage growth, boasting residential sales for homes priced $1 million or more up by 42%.
Despite Calgary’s higher activity levels, Dickson suggests significant trickle-down effects to Edmonton, noting, “They’re coming here because of what they’re getting for a place to live.” Prospects for this year remain promising with forecasts from RAE predicting total residential sales to grow about 3% and prices to jump nearly 2.5%. Most remarkably, new listings could see expansion, potentially by 4.1% across all property types, with single-family detached homes expected to rise by 5.5%.
Diminished inventory continues to pose challenges, particularly among single-family homes across various price points, including the luxury segment. “Our inventory is just so low right now,” Dickson remarked, driving many luxury buyers toward properties under $1 million. Buyers are then turning to renovations, investing substantial amounts to upgrade these homes.
He cites neighborhoods like Riverbend and Windermere as appealing areas where buyers may find relative affordability. Edmonton’s economic strength remains closely intertwined with its luxury resale market, driven by recent migration patterns. Professionals relocating from cities like Vancouver, Victoria, and even the GTA, many of whom could not afford luxury homes previously, now find opportunities here.
“The work-from-home trend has really made people think, ’If we can live anywhere, then why don’t we just go where we can get the most house for our money?’” Dickson explains. By selling modest homes for about $1.8 million or more, these new buyers can afford substantially more luxurious options within Edmonton.
Overall, the interplay of strong local economy, lower property prices compared to larger cities, and the growing trend of remote work are expected to contribute significantly to Edmonton's luxury real estate market throughout 2025. With the anticipated rise in inventory and moderate price increases, potential buyers have ample reasons to explore Edmonton’s appealing luxury offerings.
Looking forward, the luxury market remains poised for growth, embracing new buyers and adapting to shifting preferences. For those contemplating their next move, this might just be the year to take the plunge.