Edmonton housing market drawing patrons relocating from pricier cities

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“Edmonton’s healthy job market and affordable homes offer a significant lifestyle boost for people willing to move from high priced cities”

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Jul 13, 2022July 13, 20222 minutes read 19 comments A real estate sold sign is visible outside a single family home in Edmonton on Aug. 12, 2020. A real estate sold sign is visible outside a single family home in Edmonton on Aug. 12, 2020. Photo by David Bloom /Postmedia

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Edmonton home prices are expected to keep climbing in the months ahead, according to a new report from real estate brokerage Royal LePage, with buyers coming from outside of Alberta helping fuel that increase.

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The report claims the aggregate price of a home in Edmonton increased by 6.8 per cent year-over-year in the second quarter of 2022, up to $459,200.

“We are still in a seller’s market and inventory has been slowly building and buyers are finding selection is starting to improve,” Royal LePage Noralta Real Estate broker and owner Tom Shearer said in a news release.

“When they do find the right home, there are fewer competing offers.”

The Royal LePage report said the median price of a single-family detached home also grew by 6.8 per cent, up to $498,800, over the second quarter of this year. The median price of a condo grew by 5.5 per cent, up to $212,000, over the same period.

“Real estate in Edmonton had a strong start to the year and it pulled a lot of the buyer demand to earlier in the year. June activity slowed to a pace that is more typical of July,” Shearer said.

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‘Significant lifestyle boost’

He added some new buyers coming to the Alberta capital are without a job and are seeking a more affordable lifestyle compared to larger markets.

“Edmonton’s healthy job market and affordable homes offer a significant lifestyle boost for people willing to move from high-priced cities. New construction is struggling to keep up with the demand,” Shearer said.

Royal LePage is forecasting the average price of a home in Edmonton will grow by nine per cent in the fourth quarter of 2022, compared to the same quarter last year.

“The forecast remains unchanged from the previous quarter as consumer confidence remains high, driven by a healthy economy and an affordable housing market that continues to drive migration to the province,” the report states.

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In comparison, home prices in Calgary are expected to grow even more, with the aggregate price growing by 8.4 per cent, up to $616,300, in the second quarter of this year.

Homes and the downtown skyline is seen from north Edmonton. Homes and the downtown skyline is seen from north Edmonton. Photo by Ian Kucerak /Postmedia

The median price of a single-family detached home in Calgary increased 10.9 per cent to $707,700 over the second quarter of this year, according to Royal LePage data.

The aggregate price in both major Alberta cities is expected to grow below the forecasted 12.1 per cent increase Canada-wide during 2022’s second quarter compared to the same time in 2021.

At a national level, some homes lost value in early 2022, though Royal LePage CEO Phil Soper says he expects those to bounce back almost immediately.

“Canada is experiencing strong growth in household formation, so positive economic news, such as a signal that rates have reached a level where inflation can be managed, should trigger a return to rising property values.”

He says while home inventory in Canada is growing, lawmakers should be careful not to view that as a sign that the country’s housing supply crisis is over.

“A growing domestic buyer pipeline coupled with the need to house hundreds of thousands of new Canadians threatens to far outstrip the tepid pace of new home construction.”

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