The average home price in the east coast city, meanwhile, increased by $35,000 over the course of the year to $366,300, requiring local buyers to earn $2,370 more to qualify for a mortgage on the average-priced home.
Edmonton: Low inventory keeps market in sellers’ territory
2024 marked a year over recovery for home sales, with the December total of 1,428 coming in 17.2% higher than 2023 levels. Meanwhile, the number of new listings plunged by 33.3% month over month, and 7.2% annually, reports the Realtors’ Association of Edmonton. That helped fuel a year-over-year increase in the average Edmonton home price by $29,800, to $397,400, meaning Edmonton-area buyers must earn $1,050 more to qualify for a mortgage.
How much mortgage can you afford? How much house can you buy?
This monthly report tracks how affordability conditions change in major markets across Canada, based on evolving mortgage rates, home prices and the mortgage stress test. If you’re wondering how your own affordability would measure up, you can calculate your own numbers using the MoneySense mortgage affordability calculator. You can also check this table to compare mortgage rates in Canada right now.
Will housing affordability improve for Canadians in 2025?
Right now, the forecast for Canadian interest rates is a bit of a mixed bag. Our own domestic economic data, such as inflation, supports several more rate cuts from the BoC this year, with economists’ consensus calling for the overnight lending rate to end up between 2.50% to 2.75% by mid-year. The OLR is used by lenders to set their prime and variable mortgage rates.
The latest Canadian inflation numbers showed the Consumer Price Index (CPI) dropped slightly in December to 1.8%, which will allow the central bank to make another 25% cut in its next rate announcement on January 29.
However, there are quite a few factors that could disrupt this trajectory—namely wild uncertainty over incoming tariffs from the United States. President Donald Trump indicated a 25% levy on all Canadian exports should be a reality on February 1.Â
If this actually materializes, it would have devastating effects on Canada’s economy and our jobs market, while at the same time driving inflation higher.
In an analysis co-written by BMO economists Douglas Porter and Robert Kavcic, such tariffs could weigh Canadian GDP growth down by nearly two points, and would depress the loonie, all while Canadian trade retaliations and increased fiscal spending fuel inflation.Â
The BoC, meanwhile, would be forced to cut rates lower despite the inflation impact.