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Edmonton real estate is in a holding pattern.
In the last month, we have seen fixed-rate mortgages fall below the five per cent rate again. With many predicting an elevated risk of recessions in the western world, we may see more downward pressure in fixed-rate mortgage rates over the next one to three years.
Single-family homes in our region are in a balanced market with about 4.5 months of supply. Single-family homes under $500,000 are in a mild sellers’ market with about 3.5 months of supply. And condos are back into a buyers’ market with about 5.8 months of supply.
Buyers can have confidence that they are less likely to get into bidding wars with several other buyers. Bidding wars were commonplace just a few months ago.
With prices stabilizing in Edmonton, buyers can also have confidence in the sale price of their existing home.
And many buyers may opt to simply port their existing low-rate mortgage to their new home.
In terms of values, we are still higher year over year for single-family homes. Condos, however, have dropped slightly in value year over year. Our average sale price for single-family homes peaked in March at around $535,000, which was a significant jump over the average sale price of $451,000 in December of 2021.
Buyers expecting or hoping for significant drops in single-family home prices in our region moving forward will likely be disappointed.
Our prices will likely be more stable with more upward growth potential than many other areas of Canada. We did not experience the rapid growth in real estate values over the pandemic or even in the last 10 years that many other regions in Canada experienced.
Edmonton remains the most affordable major city in the nation. We are even more affordable than Winnipeg.
As a nation, we still have a housing shortage. Canada is also significantly increasing our levels of immigration, which will not only sustain demand for housing but mitigate future value corrections in many markets in Ontario and British Columbia over the next year.
It is projected that Alberta will likely lead the nation in job growth and economic growth over the foreseeable future.
Our province will continue to be an attractive and affordable region for growing families starting their real estate journeys as well as investors who are hoping for future value growth of their holdings.
Dennis Faulkner works as a realtor at Re/Max River City and holds a Bachelor of Arts degree with a major in macroeconomics. He can be contacted with your questions or a market evaluation at [email protected].
