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“And for sellers, if they think they will wait six months because prices will go up, they will wait, too.”
This wait and see attitude may be one reason why the city is expected to lag behind the national average in the forecast. Royal LePage predicts prices nationally will increase 5.5 per cent in 2021, led by large centres like Vancouver, which is expected to see prices grow by nine per cent on average.
Unlike condominium-dominated Vancouver, Edmonton’s market will continue to be driven by demand for single-family detached homes. The forecast calls for prices to gain 1.5 per cent to $430,700.
Realtor Kathy Schmidt says demand for single-family homes under $400,000 will continue to be a hot spot in Edmonton.
“In some areas supply will be low enough to cause multiple offers,” says the broker/owner of Schmidt Realty Group Inc.
“Above that price point, buyers expect more house for their dollar,” as supply will continue to outpace demand.
Yet even demand in the higher end homes should gain momentum as it has already shown in 2020, says realtor Shami Sandhu, president of Realty One Group of Western Canada.
“Edmonton saw an increase of 28 per cent in homes over $1 million sold in 2020 versus 2019,” to 158 from 123 homes sold in this category.
Even the slumping condominium segment is expected to grow with the median price gaining one per cent to about $215,000.
“In general, overall transaction activity will be up in 2021,” Sandhu says.
Yet while the Edmonton market will see growing demand, it does not appear in danger of overheating like larger centres.
“Your buying power still just gets you way more here in Edmonton versus other cities,” Shearer says. “It’s a good place to be.”
