Edmonton Actual Property is on the quickest approach again to regular

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“The market is likely to stabilize as more products come out and more sellers are listed as prices go up,” Realtor says

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Joel Schlesinger for the Edmonton Journal Edmonton's average price is expected to be more modest this year, up as much as 4.7 percent from 2020 to about $ 389,000, CMHC says. Edmonton’s average price is expected to be more modest this year, up as much as 4.7 percent from 2020 to about $ 389,000, CMHC says. Photo from file, David Bloom /Postal media

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The city’s real estate market is expected to follow the national trend of rising prices this year, along with soaring sales and new construction, a new report predicts.

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“The Edmonton market looks very much like this on a national level,” said analyst Christian Arkilley of Canada Mortgage and Housing Corp.

The crown corporation released its housing market outlook earlier this month and forecast that property sales and prices will rise significantly this year and will rise moderately in 2022 and 2023.

Nationally, the average home price could rise as much as 15 percent to more than $ 649,000 by the end of 2021 compared to 2020, led by markets such as the Greater Toronto Area and Vancouver. National sales could also grow by up to nine percent.

Arkilley notes that Edmonton’s average price is expected to be more modest this year, up as much as 4.7 percent from 2020 to about $ 389,000. In addition, sales growth of up to 16 percent compared to the previous year is forecast.

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“On the high end, the city could have around 22,400 sales, up from around 19,400 last year.”

Still, sales are expected to decline slightly in 2022 and 2023, while the average price could increase slightly in 2022 and then decrease slightly to around $ 386,000 by 2023.

Growth drivers this year will be low interest rates and the continued backlog from the pandemic, especially since restrictions are expected to be relaxed as vaccinations expand and cases fall, he says.

“We assume that the economy will continue to open as immunization increases,” says Arkilley. “We anticipate that travel restrictions will ease with international migration and the improving labor market, which will help drive demand for housing.”

Real estate agent Darcy Torhjelm, owner of Re / Max Real Estate (Edmonton), says Edmonton is one of Canada’s most affordable major cities.

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“I have a feeling that prices could go up slightly from where they are now, but if you look at the highs of the past few years, we’re not reaching those highs yet,” he says, noting that prices are still below Peak of reached in summer 2017.

Torhjelm also predicts that the market is likely to stabilize as more products come onto the market and more sellers are listed as prices rise.

Further expansions to the range include growing launches for new single-family homes – the heart of the market. It is forecast that launches this year will increase by up to 31 percent from 2020, followed by moderate growth in the two years thereafter.

Multi-family launches are also expected to increase, albeit modestly, by around eight percent by 2020.

The subdued growth partly reflects a lack of demand for condominiums, says Arkilley. The forecast also reflects the abundant supply of rental units on the market. However, vacancies are expected to fall should there be greater migration of workers and international students as the pandemic recedes, as expected.

“Everything is so dependent on the vaccine and opening up the economy,” he says.

“If that happens, it will have a significant positive impact on housing demand.”

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