Real eState

Price growth expected for Edmonton real estate – Edmonton Journal

Published

3 years ago

January 9, 2022

Harry Miller

Single-family homes remain relatively affordable in Edmonton — it’s good news for first-time and move-up buyers

Author of the article:

Joel Schlesinger • for the Calgary Herald

Photo by Ian Kucerak, File /Postmedia

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Edmonton’s resale real estate market is expected to see continued price growth in 2022, building on a strong 2021, a new report shows.

Royal LePage recently released its 2022 forecast, finding Canada’s resale market will see more than 10 per cent price growth, year over year, to almost $860,000, while Edmonton’s market is forecast to grow by half that amount.

All told, the aggregate price in Edmonton for a home is expected to rise five per cent to about $451,000, the report notes.

Despite trailing the national average, local owner and broker Tom Shearer of realty firm Royal LePage Noralta Real Estate admits thinking, at first, the forecast was too optimistic.

“But now, looking at the market ahead and what I see now, I think reduced inventory and selection will mean … those price increases are likely in 2022.”

Single-family detached homes demand will continue to drive the market with the average price expected to increase six per cent, year over year, to more than $500,000. By comparison, condominiums are forecast to rise about one per cent in average price to about $185,000.

The low price for multi-family is one reason the city is drawing attention from outside buyers, Shearer says.

“Realtors are starting to get phone calls from investors from Vancouver and Ontario, who could have a larger effect on our market, whereas last year, I don’t think they were a big factor,” says the former chair of the Realtors Association of Edmonton.

What’s more, the condo market — which had struggled the most during the multi-year slump that ended in 2020 in part due to the rise in demand spurred by the pandemic — appears to be in recovery mode.

“Anecdotally, we’re seeing condominiums that have been on the market for a long time and not getting any action, now starting to crack out of the slump with people actually buying them,” Shearer says.

More broadly, Edmonton is very affordable relative to other major centres like the Greater Toronto Area (GTA), which is forecast to see prices rise 11 per, year over year, to more than $1,375,000.

Even single-family detached homes in Edmonton remain very reasonable, with only Regina and Winnipeg market’s being more affordable, the study shows.

That’s good news for first-time and move-up buyers, says Nathan Mol, Edmonton realtor with Liv Real Estate.

“We are the most affordable major city in Canada to work, live and grow,” he says.

He also notes seeing more interest from young Canadian professionals and families in British Columbia and Ontario looking to migrate to the city to purchase a home.

Shearer says rising borrowing costs, with the Bank of Canada is expected to increase rates this year, could dampen demand, easing price acceleration that could result from reduced inventory.

The biggest risk, he adds, is what regulators like OSFI (Office of the Superintendent of Financial Institutions) may do to cool overheating markets such as the GTA. He points to previous measures such as the introduction of the stress test in 2018 having a negative impact on the Edmonton market. That said, the most recent change to the test in June, increasing the qualifying mortgage rate from 4.79 per cent to 5.25 per cent, had little impact, Shearer says.

“We have really healthy momentum going into 2022, and so the market should chug along at a really nice pace.”

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

3 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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