Edmonton’s resale real estate market may be cooling off from its heated record pace of the past two years, but surrounding communities continue to see strong demand, driven by buyers from the city.
“It’s the move-up buyers, specifically families with kids, that are causing the action we’re seeing in Sherwood Park and St. Albert,” says Taylor Hack, realtor with Re/Max River City.
Realtors Association of Edmonton statistics from August reveal year-over-year declines in resales amid rising inventories in the Greater Edmonton Region, driven by falling demand in the city limits.
The average price has gained about two per cent over the past year to reach about $470,000, but benchmark prices, reflecting the cost of the typical home, have been edging downward.
Single-family homes’ benchmark price in August for the Greater Edmonton Area, which includes outlying communities like Sherwood Park, was $524,500, down 0.2 per cent year over year.
Year to date sales for the city are the lowest since 2022, and sellers now face more competition, while buyers have more choice.
Hack says communities in the city’s southwest are still seeing strong demand, but homes are increasingly pricey with more sales crossing into the $2-million-plus range.
Even in St. Albert, homes are selling for higher. Hack points to a recent sale for about $3 million in August.
“My last listing in Sherwood Park had eight offers,” he adds, noting that level of buyer competitiveness is largely absent within Edmonton’s city limits.
“Sherwood Park and St. Albert continue to be strong real estate markets,” concurs Don Patternson, managing broker at Re/Max Excellence in Edmonton.
“Key factors for buyers include family-based communities, great schools and amenities.”
Simply, outlying communities — including Leduc, Stony Plain, Fort Saskatchewan and Spruce Grove, among others — offer city-like amenities without issues affecting the city like crowded classrooms and hospital emergency rooms, Hack says.
“These communities seem to be an appropriate size, almost like they’re specialized for families with kids.”
What’s more, move-up buyers in the city are bolstered by years of strong price growth, providing them with the equity to move to a larger, more expensive dwelling. Since 2022, the average price of a single-family home has grown almost 20 per cent.
Still, sales in these bedroom communities represent a sliver of overall activity in the region.
For example, St. Albert had 88 detached sales in August, whereas the City of Edmonton had 793 single-family home sales in August.
What’s more, sales data for smaller markets are typically volatile when doing year-over-year comparisons. St. Albert detached resales were up 23 per cent from last year, for example, but down almost 21 per cent from 2024.
As well, Sherwood Park saw sales (61 transactions) for single-family homes fall year over year nearly 25 per cent in August.
Yet its average price gained about five per cent, reaching $599,258 in August. St. Albert also saw gains. Its average price increased about six per cent to $625,434.
By comparison, the average price for a detached home in the City of Edmonton was $556,257, up less than one per cent year over year.
Hack notes the higher prices in St. Albert and Sherwood Park are not headwinds for most prospective buyers.
“People with options are seeking alternatives,” he says, noting that Edmonton move-up buyers’ gains in equity afford them those options.
“If your priority is delivering 18 summers to your kids, it’s hard to argue against Sherwood Park and St. Albert.”