Edmonton’s Luxury Real Estate Market Surges with 18% Growth

Edmonton’s luxury real estate market has experienced a significant surge, leading the nation’s largest cities in resale activity. According to the Realtors Association of Edmonton, the first half of 2023 saw an impressive 18 percent increase in transactions for homes priced at $1 million or more, totaling 187 transactions. This marks the highest level of activity in the luxury segment over the past five years, reflecting a broader trend of rising demand in the city’s overall housing market.

The increase in luxury home sales is largely driven by a bottom-up demand, as prices in the non-luxury segment continue to climb. Overall, the resale market in Edmonton reported a 3.5 percent year-on-year increase, with average prices rising nearly eight percent to reach $439,700. This growth positions Edmonton’s luxury market favorably compared to other major Canadian cities, as highlighted in the Sotheby’s International Realty Canada’s Top-Tier Real Estate: 2025 Mid-Year State of Luxury Report.

Comparative Analysis of Luxury Markets Across Canada

The report indicates that while Edmonton’s luxury market flourishes, other cities are facing challenges. Toronto experienced a 28 percent decline in luxury sales, while Vancouver saw a staggering 51 percent drop. Calgary’s luxury segment reported a modest growth of three percent, benefiting from a balanced supply and demand dynamic. Notably, Montreal stands out with a remarkable 26 percent increase in its luxury market, despite both Calgary and Montreal starting their luxury price points at $1 million, unlike Toronto and Vancouver, where luxury listings begin at $4 million.

Edmonton offers more value for buyers, presenting a unique opportunity in the luxury market. A particularly vibrant area of growth is in custom-built homes, where many properties are constructed on a speculative basis, according to John Carter, broker and owner of Re/Max River City. He notes that some builders hold off on listing until homes are fully completed, which contributes to strong sales figures.

“Some builders are waiting until it’s 100 percent complete before listing on MLS, and those properties for the most part are selling well,” Carter explains. There is also a trend of buyers purchasing homes before they are fully finished, allowing for some customization based on personal preferences. Many of these buyers are large families, with a noteworthy proportion coming from outside the province.

Local Demand Fuels Growth in Luxury Resales

Despite the influx of out-of-province buyers, much of the demand is generated from the local market. Move-up buyers are finding substantial value in the homes they are selling, which enables them to transition into the luxury segment. Jeremy Amyotte, a realtor and broker specializing in the luxury market, emphasizes this trickle-up effect: “Prices, in general, have gone up across the market, which has a trickle-up effect with homeowners.”

The luxury resale market is increasingly appealing, as buyers recognize it offers better value compared to new builds. “Resales are finally catching up with pricing in the new luxury market, but it still holds true that the really high-priced listings for resales sell for a lot less than the cost to build a similar new home,” Amyotte notes.

Despite the competitive resale market, new luxury constructions remain robust. “People are still building, which speaks to the level of disposable income in the city,” Amyotte adds. The ongoing investment in luxury properties suggests a strong confidence in Edmonton’s economic landscape, indicating that there is considerable wealth available for potential buyers.

As Edmonton’s luxury real estate market continues to thrive, it not only reflects local economic conditions but also positions the city as a significant player in Canada’s real estate landscape. The combination of increasing local demand, rising prices, and the allure of custom-built homes creates a vibrant atmosphere for both buyers and sellers in this dynamic sector.