Edmonton Housing Market Outlook (2021)
Edmonton housing market to remain balanced in 2021, prices to increase 2%
Edmonton real estate is likely to continue as a balanced market in 2021, with demand being segmented. Buyers are looking for single-family homes and yards, which includes duplex and row-style townhomes. The average sales price in Edmonton increased by 1% to $364,820 in 2020 (Jan. 1 – Oct. 31), compared to $361,152 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for Edmonton real estate in 2021 is an increase of 2% in average price to approximately $372,116.40.
Who’s Driving Demand for Edmonton Real Estate?
Move-up buyers are currently driving demand in the Edmonton real estate market, which is expected to continue into 2021. The most popular property type among move-up buyers in Edmonton are single-detached homes and townhouses.
First-time homebuyers in Edmonton are typically single homebuyers. These buyers are not looking at one property type specifically and are buying across all property types. The average price spent on a property by a first-time homebuyer is approximately $300,000.It is expected to be more difficult to enter the market as a first-time homebuyer in 2021, as there is expected to be less inventory, making it tough for buyers to find the right property.
Move-up buyers in the Edmonton housing market are typically young couples. There has been very little hesitation in move-up buyers when it comes to entering the market, as many are trying to take advantage of the low interest rates and low property values. Move-up buyers in Edmonton have changed the criteria on what they look for in a home due to COVID-19. Many move-up buyers are looking for yards, more space, separate offices and finished basements.
The condominium market in Edmonton is most popular with single homebuyers and young couples. The average price for a condo in Edmonton is $222,181. Apartment-style condos are currently in oversupply, which means prices are likely to drop. Currently in Edmonton, many examples of large assessments have been seen, mostly due to insurance costs escalating dramatically for condo corporations, which has resulted in higher condo-fees.
Edmonton’s luxury market is currently driven by move-up buyers with the average starting price for a luxury home in Edmonton being $1,000,000. At this price point, many buyers are getting great value, with the majority of the homes being newer infill or older beautifully renovated homes with large yards in mature areas, or huge lots, often with ravine or private nature backing, in new development areas. Read more
The strength of the Canadian real estate market has continued to prove itself time and time again during the pandemic. While we’re not out of the woods yet, we are expecting continued growth for the duration of 2020, with an active market for the foreseeable future and balanced conditions at the national level into 2021. This is great news for Canadians.
The Canada Mortgage and Housing Corporation’s Chief Economist Bob Dugan, told reporters at a press conference recently that the agency stands by its previous forecast in May that warned of a decline in Canadian house prices between nine and 18%.
“I’m not convinced that we have a sustainable basis for housing demand in the economic disturbance that’s going on related to COVID-19,” Dugan said. “That’s why I say I stand by the forecasts.”
We expressed our concerns over CMHC’s predictions in the spring, and Dugan’s latest statement continues to raise eyebrows – ours, and other industry insiders as well, as the Canadian housing market stays on its upward course.
While I can appreciate some of the reasoning that went into CMHC’s prediction, especially in the spring when so much was still unknown, . The market data doesn’t support such a steep price decline, especially with the two largest real estate markets of Toronto and Vancouver continuing their upward momentum. The Prairies are facing different circumstances and challenges due to the resources sector, however Ontario and BC are expected to offset slower activity in Saskatchewan and Alberta. Read more
With social distancing and other protective measures in place to prevent the spread of COVID-19, people and businesses have had to creatively adjust to a new normal of functioning under these circumstances. Deemed an essential service across Canada, the real estate industry has continued to operate, though buyers and sellers are transacting very differently, to ensure the safety of everyone involved. Wondering how to navigate the real estate market during this unprecedented public health crisis? Below we share how your real estate journey will look as a buyer or seller in the COVID-19 pandemic landscape. Read more
Edmonton, September 2, 2020: Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for August 2020 increased 20.11% compared to August 2019 and decreased 13.16% from July 2020. The number of new residential listings is down year over year, decreasing 3.96% from August 2019. New residential listings are down month over month, decreasing 9.28% from July 2020. Overall inventory in the Edmonton CMA fell 14.6% from August of last year and decreased 5.95% from July 2020.
For the month of August, single family home unit sales are up 22.98% from August 2019 and down 12.39% from July 2020. Condo unit sales decreased 0.97% from August 2019 and decreased 17.41% from July 2020.
All residential average prices are up to $374,409, a 1.86% increase from August 2019, and up 1.24% from July 2020. Single family homes sold for an average of $439,605, a 1.01% year-over-year increase from August 2019, and a 0.79% increase from July 2020. Condominiums sold for an average of $229,172, a 2.23% decrease year-over-year, and prices are up 1.79% compared to July 2020. Duplex prices dropped 3.48% from August 2019, selling at $342,169, which was a 3.07% increase from July 2020.
“The Edmonton market prices have seen an increase in year-over-year unit sales, compared to a month to month sales decrease,” says REALTORS® Association of Edmonton Chair Jennifer Lucas. “There have also been more sales of single-family homes compared to August of last year, while we’ve seen less sales in the condo and duplex market. Single family home pricing increased 1.01%, duplexes are down 3.48%, and condos are down 2.23% year-over-year.”
Single family homes averaged 46 days on the market, an eleven-day decrease from last year. Condos decreased to an average of 65 days on the market while duplexes averaged 51 days on market, a ten-day decrease compared to August 2019. Overall, all residential listings averaged 52 days on market, decreasing by 10 days on market year-over-year and two days compared to the previous month.
Source: REALTORS® Association of Edmonton
Moving into a new home is exciting–it represents a fresh start with new rooms to decorate, and a new neighbourhood to explore. However, setting up your house can also be exhausting and stressful. But don’t worry–we’ve compiled a helpful checklist of things to cross off before you settle in.
1. Update your address and transfer utilities
Before you move in, you’ll need to update your address, which is linked to everything from your driver’s license to your health card. Be sure to inform everyone–your bank, insurance company, credit cards and loyalty programs–so you won’t miss important notices. You may also want to set up temporary mail-forwarding with Canada Post. While you’re at it, get in touch with utility companies several weeks before the move, so they can transfer and activate your electricity, gas, telephone and internet accounts over to the new place. Read more.
Empty nesters are a booming demographic for real estate sales in Edmonton.
Your kids are off to school, getting married and starting their lives with kids and homes of their own. You no longer need that sprawling five bedroom estate. It’s way too much to clean and depending on your ageing health; it can be a pain to keep clean and in good repair.
Empty nest households where adult children have moved out, are the most common type of household in the country in 2016, representing 28.2 percent of all households in Canada. You are not alone in this stage of your life. The good news is there a lots of options for empty nesters who want to downsize to an Edmonton condo, townhome, apartment or even a stratified, smaller family home where yard and maintenance is taken care of. The options are endless. There is also a long list of buyers looking for deals on older homes in great neighbourhoods that they can renovate and improve for their own growing families. Read More
Canadian real estate kicked off 2020 with a bang, but there are conflicting opinions as to how we’ll finish out the year. Canada’s federal housing agency has warned that average house prices could fall by up to 18 per cent over the next 12 months – a dismal prediction that’s being challenged by RE/MAX based on market activity from coast to coast.
Basic economics has taught us that supply and demand dictates housing prices, and according to what RE/MAX brokers are reporting at ground level, housing inventory is down in many markets, demand is still high, and multiple offers are a common scenario. Assuming that demand continues its current course, Canadian real estate prices will likely remain relatively stable or experience a single-digit price correction at worst this year – which is a far cry from CMHC’s dire decline of up to -18 per cent.
If you’ve been thinking about buying a house, you may be wondering how you’ll know when it’s “the right time.” If you don’t have a 20% down payment saved up, is it still OK to consider buying? If you can’t afford your forever home, should you still jump into ownership now? And does the COVID-19 pandemic change the rules for first-time home buyers?
Smart people who consider those questions—and more—every day respond with these six pieces of practical advice.