December 2024: Seasonal Trends in Sales and Inventory

The headline for December was a 25% drop in sales, with 1,428 homes sold compared to 1,920 in November. While a 25% decline might seem drastic, it’s actually quite normal for December. Historical data shows similar trends:

• December 2023: Sales dropped 25%
• December 2022: Sales dropped 22%
• December 2021: Sales dropped 28%

This pattern is largely due to the holiday season, when fewer buyers and sellers are active in the market. Many homeowners prefer not to show their properties during this time, and new listings from builders typically slow down as well.

In terms of inventory, we saw a decline of 1,000 units, finishing the month at 3,496 homes. While December did see a normal number of new listings, the overall inventory decreased as many properties were terminated or temporarily removed from the market, likely to be relisted in January. This seasonal adjustment sets the stage for a potentially robust start to 2025 as inventory levels recover.

Year-Over-Year Price Increases

One of the most notable stories of 2024 was the significant year-over-year price growth across all property types. Here’s a closer look at the numbers:

• Detached Homes: Up 13%
• Semi-Detached: Up 14%
• Row Houses: Up 13.1%
• Condos: Up 12.9%

Detached homes remained the strongest performers, with an average price of $498,000 in December. Semi-detached homes followed closely, with an average price of $411,000. Row houses averaged $292,000, while condos held steady at $192,000, reflecting a 5% month-over-month increase.

Most of these gains occurred in the first half of the year, with prices stabilizing from August onward. This pattern aligns with the broader economic recovery and increased buyer confidence earlier in 2024, which drove demand and pushed prices higher.

Market Stability and What’s Ahead in 2025

Looking ahead to 2025, Edmonton’s real estate market appears well-positioned for growth. The seasonal slowdown in December is expected to give way to increased activity in January as both buyers and sellers re-enter the market. Builders are also expected to bring new inventory to the table, which could further stimulate sales.

Alberta’s economic landscape continues to support a positive real estate outlook. With ongoing demand for oil and a provincial government that is focused on supporting the industry, Alberta remains an attractive market for investors and buyers alike. Additionally, potential changes on the political front—both federally and internationally—could create opportunities for further growth in the region.

Spring is traditionally one of the busiest times in real estate, and early indications suggest that 2025 will be no exception. If the trends we saw in late 2024 carry over, we could see another strong spring market, particularly in detached homes and other high-demand property types.

Final Thoughts

Edmonton’s real estate market remains a dynamic and exciting space. While December brought its usual seasonal adjustments, the broader trends of 2024 show a market that is resilient and positioned for continued growth. Whether you’re considering buying, selling, or simply keeping an eye on the market, staying informed is key to making the right decisions.

If you have any questions about these trends or how they might affect your plans, don’t hesitate to reach out. We’re here to help you navigate the ever-changing real estate landscape and achieve your goals.

Here’s to a successful and prosperous 2025!