Edmonton
According to a new report, it is expected that the real estate market of the city will follow the national trend this year of increasing prices along with growing sales.
The housing market outlook was released by the crown corporation earlier this month and forecasted that the prices will rise significantly in the next part of the year and moderately in the years 2022 and 2023. The average home price nationally by the end of the year 2021 can increase by as much 15 percent to $649,000 as compared to 2020 in the markets of the Greater Toronto area and Vancouver.
The increase in the average price of Edmonton is expected to be modest by 4.7 percent to $389,000 than the average prices of last year. The forecast about sales is that they will increase year over year by 16 percent. The high-end city will see numbers up to 22,400 this year which was 19,400 last year.
But the number of sales will decline in the year 2022 and 2023 slightly. The average prices will also rise modestly in 2022 and in 2023 they will slightly fall.
The factors that are driving growth this year are the low interest rates and continuing increasing demand due to the pandemic. Mainly because of the expected ease to restrictions with expanding vaccinations and cases failing. As the immunization expands the economy of the city will open more. With the ease of restrictions, there will be an increase in international migration and job activities which will eventually boost the real estate market. The most affordable metropolitan area of Canada in Edmonton, said Realtor Darcy Torhjelm, owner of Re/Max Real Estate.
The price gain of detached houses and townhouses was maintained year over year again. While on the other hand, the prices of condos remain decreasing year over year, and a sharp decrease in the average prices of condos is seen.
The average sold price of detached homes is 67 percent and there is an increase of 4.9 percent year over year while a decrease from July 2021 is seen of 1.1 percent month over month. The sales of detached houses in the city are 67 percent. The total sales of townhouses are 14 percent. The average price of all these sales is $355,326. The increase in sales of townhouses is 7 percent year over year while a decrease of 0.6 percent month over month.
The market of condos was lost by detached homes. They make 20 percent of the total sales of Edmonton. The average sold price is $227,59. Their sales number is down by 2 percent year over year and 5 percent month over month from July and is a significant decrease.
The CMHC decreased its standards for insured mortgages as a new regulatory tailwind to the housing market of Edmonton. Due to this GDS and TDS ratio limits from 35 % and 42 % to 39 % and 44 % respectively. The potential leverage for home buyers increases in Canada specifically for the cities like Edmonton where average prices of homes always remain under $ 1M.
