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.
Sources:
https://wowa.ca/edmonton-housing-market
https://edmontonjournal.com/life/homes/price-growth-expected-for-edmonton-real-estate
https://edmontonjournal.com/news/local-news/probably-more-activity-than-weve-ever-seen-edmonton-real-estate-market-staying-busy-and-seeing-increases-in-q4
https://edmonton.ctvnews.ca/edmonton-realtors-forecast-13-per-cent-drop-in-single-family-sales-in-2022-1.5746701