Meanwhile, the average home price in the East Coast city rose $35,000 in one 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 is a year of recovery for home sales, with December home sales totaling 1,428 units, 17.2% above 2023 levels. Meanwhile, the Edmonton Association of Realtors reported that the number of new listings fell 33.3 per cent month-on-month and 7.2 per cent annually. This increases the average Edmonton home price by $29,800 annually 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 I buy?
This monthly report tracks changes in affordability conditions in Canada’s major markets based on evolving mortgage rates, home prices and the mortgage stress test. If you’re wondering how much you can afford, you can use the MoneySense Mortgage Affordability Calculator to run your own numbers. You can also check out this table to compare current mortgage rates in Canada.
Will housing affordability improve for Canadians in 2025?
Forecasts for Canadian interest rates are a bit mixed at the moment. Our own domestic economic data such as inflation supports further interest rate cuts by the central bank this year, and economists agree that the overnight lending rate will reach a range of 2.50% to 2.75% by mid-year. Lenders use the OLR to set their prime mortgage rates and variable mortgage rates.
Canada’s latest inflation data showed that the consumer price index (CPI) fell slightly to 1.8% in December, which will allow the central bank to cut interest rates by another 25% in the next rate cut announced on January 29.
However, there are a number of factors that could disrupt this trajectory, namely significant uncertainty over the imposition of U.S. tariffs. President Donald Trump says a 25% tariff on all Canadian exports will become a reality on February 1.
If this were to come true, it would have a devastating impact on the Canadian economy and job market, while driving up inflation.
An analysis co-authored by BMO economists Douglas Porter and Robert Kavcic said such tariffs could reduce Canada’s GDP growth by nearly two percentage points and depress the Canadian dollar, while Canada’s trade retaliation and increased fiscal spending stoke inflation.
Meanwhile, the Bank of Canada will be forced to lower interest rates despite the inflationary impact.
