Edmonton’s housing market is off to quite the start in 2025, with residential sales rising in January despite the typically slower winter season, according to the latest report from the Realtor’s Association of Edmonton. In January, 1,597 residential sales were recorded in the Greater Edmonton Area (GEA), marking a 12.1% increase from December 2024 and an 11.2% rise compared to January 2024.

New listings rose dramatically last month to 2,452, up 83.5% increase from December 2024 and a 12.9% gain from January last year. Despite the monthly growth, overall inventory remained lower year-over-year, down 18.2% compared to the previous year.

“When we announced our 2025 Housing Market Forecast just a few weeks ago, we did count on some unpredictability this year,” said Realtor’s Association of Edmonton board chair Darlene Reid.

“The first surprise of the year is seeing such a marked increase in newly listed properties coming onto the market in what is typically a slower month, and of course, many were snatched up right away. I’d love to say that trend will continue through the year, but we’ll have to wait and see.”

The average residential price reached $438,278, up 0.8% from December and 9.9% higher than January 2024. Detached homes averaged $561,282, a 4.2% increase from December and 16.2% higher annually.

According to the report, apartment condominium sales saw the most significant annual increase, jumping 36% from last year, while semi-detached sales surged 41.8% year over year.

Row/townhouse sales climbed 21.8% annually, and detached home sales, while making up the majority of transactions at 856 units, dipped 2.4% from the previous year but increased 3.9% month-over-month.

Semi-detached homes sold for an average of $420,844, up 3% month-over-month and 11.2% year-over-year, while row/townhouses averaged $311,866 — growing 6.6% from December and 15.8% from last year.

Apartment condominiums were the only category to see a monthly price decline, down 0.8% to $202,663, but remained 4.9% higher than January 2024.

The MLS Home Price Index composite benchmark for the GEA was $419,200, a 3.8% monthly increase and a 12% rise from January 2024.

Homes spent an average of 48 days on the market, up four days from December but 11 days faster than in January 2024.

Detached homes took 51 days to sell, seven days longer than the previous month, while semi-detached properties averaged 37 days, up four days from December.

Row/townhouses also sold at 37 days, down one day from December, while apartment condominiums remained unchanged at 57 days.

Key Takeaways

- 30-year amortization are available for First Time Buyers and for All Buyers of New Builds!

- High-ratio mortgage insurance limit increased to $1.5M from the previous $1M

-Homeowners can refinance their homes when adding a secondary suite (such as basement suite, or over-garage apartment).

- Combined, these are some of the most impactful affordability measures introduced to buyers in decades.

1. 30-Year Amortization for First-Time Buyers

First time home buyers are now eligible for 30-year amortizations!  

A “first time” home buyer must meet at least one of the following criteria:

•  Someone who has never purchased a home

• Anyone who hasn’t owned a home (including their current spouse) for the past 4 years.

• Those recently separated from a marriage or common-law partnership.

2. 30-Year Amortizations for All Buyers of New Builds

New builds now qualify for 30-year amortizations for all buyers – no first-time buyer restriction! To be considered for a new build home, the new home must have been previously occupied for residential purposes.

Even if you’re eligible for a 30-year mortgage, it’s crucial to understand both the benefits and drawbacks of these loans.  

Pros and Cons of a 30-year Mortgage

Pros

1. Lower monthly payments. By stretching your mortgage out an extra five years, your monthly payment will decrease. By extending the repayment period 5 more years, your mortgage balance is divided into smaller portions, making your monthly obligations more manageable.

2. Flexibility. With reduced monthly payments, you can free up cash flow to invest in other areas, such as retirement savings, education funds, or paying down high-interest debt.

3. Improved affordability. Lower monthly payments may enable buyers to qualify for a larger mortgage, allowing them to purchase a more expensive home or compete in hot housing markets. This flexibility can be especially beneficial for first-time homebuyers or those upgrading to a larger property.

Cons 

1. Paying more in interest. A 30-year mortgage involves more time for you to be charged interest. The interest rate you’re charged will likely be higher than for a mortgage with an amortization of 25 years or less, too.

2. More debt for longer. Three decades is a long time to pay back a loan, especially if it takes you close to retirement. If you’re still plugging away at a 30-year mortgage when you’re 64, for example, it might mean putting less into your RRSP or TFSA than you’re comfortable with.

3. High-Ratio Mortgage Insurance Limit Increased to $1.5M

Buyers can now qualify for a mortgage with less than a 20% down payment on homes priced up to $1.5M, making it easier to access higher-priced properties. This move aims to help buyers in higher-priced markets where skyrocketing housing costs have made it nearly impossible for many to qualify for insured mortgages under the previous $1M cap.

While this is especially relevant in markets like Toronto and Vancouver, it could be an option for those who are thinking of purchasing a little higher in cities like Edmonton, Sherwood Park, St. Albert and more.

4. Secondary Suite Refinance Program

Effective January 15, 2025, Homeowners have the chance to refinance up to 90% of their property’s value (capped at $2M) to add up to four rental units – such as basement suites, in-law suites, or above garage apartments.

The borrower must meet all the following requirements:

• Borrower must already own the home

• The borrower or a close relative are occupying one of the current units

• Intend to construct additional units

• The additional unit(s) must not be used as a short-term rental.

• 30-year amortization is allowed.

New rental suites would provide more homes for Canadians and could provide an important source of income for seniors continuing to age at home. We expect this program to be very popular as clients look to offset mortgage costs with rental income.

Closing Thoughts

As we step into 2025, these mortgage updates present exciting opportunities and considerations for buyers, homeowners, and investors alike. Whether you’re a first-time homebuyer, planning to build your dream home, or exploring refinancing options, staying informed is key to making the best financial decisions. If you have questions about how these changes might affect your plans, or if you’re ready to buy, sell, or invest in real estate, reach out to us today. Let’s navigate this evolving market together and make your real estate goals a reality!

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Jeff & Sandy Johnson