Edmonton's Real Estate Forecast for 2022

The housing market of Edmonton saw robust growth in December 2021. The average sold price of a home in Edmonton was $381,869, and it was a 5% year-over-year increase. This is among the lowest price increases in the country's housing market for urban areas. There was a sturdy growth in sales and listings, which is different from other major Canadian cities that are seeing a decline in sales and listings. The sales have increased by almost 20%, while the new listings rose by 10% year over year.

Prediction for 2022

The sales might drop in 2022, according to experts. The Realtors Association of Edmonton forecast stated that the sales of single-family homes in Edmonton would fall by nearly 13% in 2022. It was a conservative projection and shared that there might be a 7% drop in condominium sales.

The Chair of the Association, Paul Gravelle, said: "While there are still some concerns with COVID and the emergence of new variants, we've seen a strong regional real estate market rebound."

It was also predicted that the average prices for single-family homes would rise by 3%, while the average prices for condominiums would increase by 1.4%.

Demand and Supply

The demand for housing in Edmonton was higher than the supply in 2021. It will keep happening in 2022 as well. One of the reasons for the increase would be a decrease in the number of listings. Gravelle said, "Supply and inventory will continue to be a challenge and continue to drive prices up. When we have a shortage of homes, that's when we see an increase in prices."

According to the association, the projected increases would amount to average sales prices of $234,000 for a condominium and $472,000 for a single-family home.

Demand from the Youth

Edmonton is among Canada's most affordable major cities to live, work, and grow. Young Canadian professionals from Ontario and British Columbia are also planning to migrate to Edmonton in the future.

The Hurdle

A key reason that might dampen the demand for houses in Edmonton is rising borrowing costs, as the Bank of Canada is expected to increase the rates in 2022.

Resale Market

The resale market of Canada will see a growth of more than 10% year over year to about $860,000. However, Edmonton's market is expected to grow by half that amount. According to a report, the aggregate price in Edmonton for a home is expected to increase by 5% to about $451,000.

Impact of COVID-19

The COVID-19 pandemic has also impacted the housing market of Edmonton, according to an expert, as more and more people are spending time inside their homes.

Condos Better than Homes

If you are looking to buy a property in Edmonton in 2022, you should seek a condominium as the median price of an Edmonton condominium witnessed an increase of 2% this quarter and is around the price of $193,600.

Read about the reasons to live in Edmonton here.

Know about the COVID-19 situation in Edmonton here.






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