Interest rates are coming down, Canada lowered rates by 25 basis points bringing the policy rate to 3%. What does this mean for you as a buyer? The cost to mortgage your home will cost you less each month, you’ll have more money to put towards other expenses & a lower overall cost of living.
The Edmonton housing market is still one of the most affordable markets in Canada, but that’s slowly changing. While as recently as December we were in a strong sellers market with a ratio of 104% of sales to new listings, we’ve since started to recover and we’re now in a 65% ratio of sales to new listings, meaning we have far more options for home buyers. Our market is heated up with no signs of slowing down, word has spread across the country of our affordability, and it's evident with the buyers we’re seeing today.
In December 2024, Edmonton saw 1.13K properties sold, marking a 25.14% increase compared to December 2023.
For the year-to-date (YTD) 2024, there were 20.4K sold properties, a significant 26.73% increase from the previous year.
Tariff Questions? The U.S. tariffs could impact Alberta's housing market in several key ways:
1. Higher Construction Costs
Tariffs on building materials: The U.S. has imposed tariffs on Canadian lumber, steel, and aluminum—key materials in home construction. This could drive up the cost of new homes as builders pass the higher costs onto buyers.
Uncertainty in pricing: Developers may struggle to forecast costs, leading to project delays or increased pre-construction pricing.
2. Reduced Housing Affordability
Higher construction costs mean more expensive homes, which could push some buyers out of the market.
First-time homebuyers, already dealing with rising interest rates, may face additional affordability challenges.
3. Slower Housing Development
With higher costs and economic uncertainty, some developers may delay or cancel projects, reducing the supply of new homes.
A slowdown in new builds could further strain the market, especially as Alberta continues to experience strong population growth.
4. Broader Economic Effects
Impact on Alberta’s economy: Sectors like manufacturing and energy, which rely on U.S. trade, could also be affected. A slowdown in these industries could lead to job losses, reducing homebuyer demand.
Inflationary pressures: Higher costs of goods and services, including household items and renovations, could put financial strain on homeowners.
5. Potential Government Response
The federal and provincial governments may introduce incentives, subsidies, or tax relief measures to offset the impact on builders and buyers.
Industry groups are already pushing for policy adjustments to ease the burden on the housing sector.
In summary, U.S. tariffs could make Alberta’s housing market more expensive and less accessible, with ripple effects across the economy. Buyers, builders, and policymakers will need to adapt to these challenges in the months ahead.