Why It’s Unlikely That Home Prices in Edmonton Will Go Down

For many prospective homebuyers visiting our showhomes, sticker shock is real. Whether it’s first-time buyers or those re-entering the market after a few years, we’re hearing the same things:
“Houses cost how much now?”
“My uncle told me prices are going to drop.”
“Maybe I should just wait.”

We understand these concerns, and we hear them often. Housing is one of the biggest purchases anyone will make, and it’s only natural to want to feel confident in your timing. But let’s take a moment to talk about what’s really going on in Edmonton’s market and why waiting for prices to fall might not work out the way many people hope.

The Truth About Home Prices in Edmonton

While Edmonton has historically been one of the more affordable major cities in Canada, we’re not immune to the same pressures affecting the rest of the country:

• Rising construction costs

• Ongoing labour shortages

• Increased land development costs

• Inflation and interest rate impacts

These factors don’t just affect builders, they impact the entire housing industry. Materials like lumber, drywall, and mechanical systems have all seen cost increases in recent years. While some of those increases have levelled off, none have returned to pre-pandemic pricing. In addition, as the cost to develop communities rises (including utilities, roads, and municipal levies), these expenses ultimately contribute to the final price of a new home.

Why Prices Aren’t Likely to Drop

Some people are holding off in the hope that housing prices will come down. But in Edmonton, all signs point in the other direction. Here’s why:

• Population growth: Alberta, and Edmonton specifically, continues to see strong in-migration. More people means more demand for housing.

• Limited land supply: There’s only so much land available for development. As cities grow, the cost of that land continues to rise.

• Interest rates might drop, but that won’t lower home prices: If interest rates decline, as some economists forecast, we may actually see more buyers enter the market. This can create upward pressure on prices.

• Labour and material costs aren’t reversing: We’re not likely to see a drop in the cost of skilled trades or key construction components anytime soon.

In short, there’s no indication that home prices in Edmonton are heading for a downturn. In fact, there is every reason to believe they’ll continue to rise steadily.

What Does It Actually Cost to Buy a Home Today?

Let’s break down what’s involved in purchasing a new home:

• Down payment: At minimum, 5% of the home’s purchase price.

• Closing costs: Things like legal fees, home inspection, and title insurance can add up to 1.5–2% of the price.

• Monthly mortgage payments: This varies based on the amount borrowed and current interest rates. The important thing to remember is that locking in today’s price can help protect you from future affordability challenges.

• Ongoing homeownership costs: Property taxes, utilities, and home maintenance should also be part of your budget planning.

The Real Cost of Waiting

While it might feel safer to wait it out, delaying your purchase could actually cost more in the long run. Here’s how:

• A $10,000 increase in home price at today’s interest rates could add $50 to $70 per month to your mortgage payment.

• If interest rates drop and prices rise, you may find yourself competing with more buyers, potentially being priced out of your ideal home or location.

• The longer you rent, the more you miss out on building equity. That equity could be growing with each mortgage payment.

Our Advice? Buy When It’s Right for You

At Coventry Homes, we’re not here to rush your decision. We’re here to support it. If you’re financially ready, have a stable income, and have found a home that suits your lifestyle, now may be the right time to move forward.

We offer a wide range of options, including Quick Possession Homes, customizable floorplans, and flexible upgrades that let you tailor your home without stretching your budget. And with our Price Guarantee, you’ll never be surprised by hidden cost increases once you’ve signed your contract.

Want to Talk More?

If you’re unsure where to start or just want to better understand your options, we invite you to visit one of our showhomes or speak with a member of our team. We’re happy to walk you through real numbers, real timelines, and help you feel confident in your decision, whether that’s now or in the future.