EDMONTON MARKET ANALYSIS

Your Home
is Now

Real estate in Edmonton is becoming an increasingly hot commodity. The market dynamics are set up perfectly for homeowners to sell their homes. Whether it’s to upscale, downscale, or switch to home rental if you’re considering making a move, there are several indications that now may be the best time to sell your home in Edmonton.

THE REALTORS ASSOCIATION OF EDMONTON HOME PRICE INDEX

According to the REALTORS Association of Edmonton Home Price Index, the average single-family home in December 2019 was listed for $364,600. Currently, prices for the same homes have jumped to about $415,200. This is a record high for single-family home prices since before the housing boom of 2007. Meanwhile, the average price for all residential homes in Edmonton is 5.3% higher than the same time last year.

CURRENT MARKET CONDITIONS

Edmonton homes are selling fast. The recent RAE data shows residential unit sales increased 19.5% in December 2021 compared to December 2020, with the percentage of single-family homes jumping 16.5% in that time. That makes this potentially the first time in years you could pull in a profit on the sale of your home.

Many houses on the market in Alberta are receiving multiple offers and often selling for far above list price. This gives your home a much better chance of selling for an attractive price today than a year ago.

INTEREST RATES

Currently, the prime interest rate with the Bank of Canada is only half-percent, but that number is expected to inflate by a full
percentage point over the coming year. So, in addition to being a better time to sell than in the recent past, it appears this is a better time to sell than in the near future too. Right now, you’re in the sweet spot for home sellers where buyers are motivated and lenders are still offering relatively low-interest rates.

NEW HOUSING STARTS

At the same time as buyers flood the housing market and existing homes are in such high demand, the cost of building materials like lumber has skyrocketed. This, in turn, has driven up new construction costs, causing homebuilders to grind the pace of new housing starts to a halt. As a result, existing homes are in even higher demand. Meanwhile, homebuilders have subsequently passed down their higher construction costs to customers, driving up newly constructed home prices by 15% or greater. That has only further tipped the scales in favor of sellers of existing homes versus sellers of newly constructed homes perhaps for the first time in over a decade.

IMMIGRATION

As the natural resources industry in Edmonton and larger Alberta continue to grow, the area will likely continue to see an influx in new workers coming from other countries. These new workers will obviously need places to live as well, further improving the situation for home sellers.