Edmonton
An unwelcome decrease in the oil and gas sector of Alberta has severely impacted the economy and real estate market of the province. There was already a market slump in the province from which it was trying to recover and then hit the COVID-19. According to the Housing Affordability Report, out of the sixteen Canadian cities it has been ranked as the third most affordable city. Since 2018, the average sale prices of the houses are decreasing steadily.
Unemployment was increasing over the years with a loss of 11,000 jobs in 2019. In 2020, the city was hoping to unfold a healthy spring market with the increase in sales and fewer listings. There are many new development projects that are attracting the foreign buyers and millennials in the Downtown Area of Edmonton. But this outlook was surprisingly shifted due to the pandemic.
As real estate market was already facing difficulty over the past years, this pandemic made the decrease in the prices more sharply. The prices dropped 1.4% from last year in just the first few months of 2020.
New Construction
There is a high inventory of the unsold and completed homes in the city, which led to the decrease in the new constructions. The pandemic and the oil prices had put a very bad impact on the economy of the city. According to the account’s half of the unsold homes in Alberta are in Edmonton. There is also a decrease in the migration which will affect the population growth and ultimately the sales of houses.
Metro Edmonton Condo Apartment Prices
Metro Edmonton apartment prices have been decreasing for years. Today, a benchmark Edmonton condo is economical. Now sales are increasing but they are in the line with the last year. In over 20 years, this spring-summer is the slowest in the sales. It is expected that there will occur in the drop in prices of condos with the higher quality, more expensive and larger area. The price of most modest condos will experience a fall.
Increased rental supply
As the demographic’s growth is declining such as the international migrants and population of young adults so the demand for rental units is decreasing. Many developmental projects are under construction which are going to complete in the estimated time of the two years. This will result in an increased inventory of the already present and the new rental units. So ultimately vacancy rates will be increased.
Resale Transactions
Due to the oil price shock and the pandemic, resale activities in Edmonton are declined. These prices are expected to decrease till 2022 due to the trajectory of the regional economy and the doubts in the oil prices. Now, as the restrictions are eased due to which an increase in the population and the improvement in the labour market is seen. This will result in an increase in the prices of the houses in 2022. But still it is difficult to get the expected results in the forecast period.
