Edmonton's luxury real estate market offers comparative value

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If Edmonton realtor Jeremy Amyotte has a message for buyers in the city’s luxury market, it’s that their dollar goes go further.

That said, it’s not just about the dollars.

“There certainly is an advantage for buyers in resale not only because they get a better deal; they are also not going through the stresses of building,” says Amyotte, a realtor specializing in luxury home sales in Edmonton, and president of Amyotte Real Estate.

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The $1-million-plus segment in the city is having a moment, too.

In September, for example, sales were up 51 per cent compared to the same month last year, he says, citing Multiple Listing Service data.

That would place the city as one of the fastest growing luxury markets in Canada, based on the recent Sotheby’s International Realty Canada Top-Tier Real Estate: Fall 2024 State of Luxury Report.

“Alberta as a whole has seen elevated activity for the last little while across the entire market,” says Don Kottick, president and chief executive officer of Sotheby’s International Real Estate Canada, based in Toronto.

Calgary remains among the leaders for luxury sales growth in the province and nationally, the report highlights. It found sales for homes were up 15 per cent in September from the same month in 2023.

Montreal was the leading city in the report for percentage sales growth, surging 83 per cent for homes priced $1 million or more in September.

That’s in contrast to Toronto where sales grew about nine per cent, and Vancouver where its luxury sales fell 52 per cent year over year.

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Kottick notes that those cities’ luxury markets are different than Calgary, Montreal and even Edmonton, which was not included in Sotheby’s report.

“One million dollars is not even a starter home in Toronto and Vancouver these days,” he says, noting that the entry point for luxury in Canada’s two largest cities is $4 million.

In turn, these cities’ luxury markets are less affected by move-up buyers from the non-luxury resale market than in Calgary, Montreal and Edmonton.

Still, even with mortgage rates falling, which will activate many buyers on the sidelines, Kottick forecasts the Alberta market will see slower growth in the coming months.

It’s going to take “a breather,” he adds.

Yet Amyotte remains bullish on the Edmonton market. Although luxury remains a sliver of overall activity — with just 53 sales in September amid more than 2,200 resales for the entire market — it has plenty of momentum to grow. That is especially so in a lower mortgage rate environment because resales offer more value not just compared with other big cities, but even over the new homes market in Edmonton.

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“Resale sellers are competing with the new homes luxury market,” he says, noting that’s especially the case for ultra-luxury, which is $2.5 million and up.

At that point, many prospective buyers could build their dream home, Amyotte adds.

Yet he reminds buyers that resale offers greater value. Due to competition with new homes, sellers must list their homes below replacement value.

“Then, there is the time, money and stress of building on your own,” he says, noting resale is largely a turn-key transaction.

Yet it’s not just in ultra-luxury, Edmonton’s move-up buyers looking to dip into luxury at its $1-million threshold are getting one of the best deals among major Canadian cities, Amyotte says.

“As long as the city continues to get in-migration, driving mid-range prices, move-up buyers will have the ability to take advantage of the spectacular value in the $1-million and up space.”

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