Edmonton property costs are more likely to rise for the rest of the yr

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Royal LePage’s Home Price Survey and Market Forecast predicts the total price of a home in Edmonton will increase seven percent by the end of 2021

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Joel Schlesinger for the Edmonton Journal Edmonton home prices are expected to continue rising for the remainder of the year, but at a more moderate pace. Edmonton home prices are expected to continue rising for the remainder of the year, but at a more moderate pace. Photo by David Bloom, file /Postal media

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Edmonton’s resale property market is poised for more growth after an excellent spring of price growth, according to a new report.

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Royal LePage’s real estate price survey and market forecast, published earlier this month, found that the average total price of a home in the city rose more than 11 percent year over year to $ 430,000 in the second quarter of this year.

And it predicts continued price growth for the rest of the year.

“That (second quarter of 2020) was probably the easiest quarter to beat in the history of the time,” said Tom Shearer, broker / owner of Royal LePage Noralta Real Estate in Edmonton.

Indeed, due to the impact of the pandemic, the April to June period last year was of historically low sales activity and hence lackluster price growth.

Since then, the market has warmed, culminating in one of the strongest springs this year, Shearer says.

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“We’ve just been through one of the busiest neighborhoods in 15 years,” he says, noting that some of his firm’s agents have mentioned that summer feels slow by comparison.

“Now we are experiencing a more typical real estate year where things peaked in the spring and faded in the summer and then in the fall.”

Sales and price growth should moderate for the remainder of the year, the report predicts.

Royal LePage’s report predicts that the total price of a home in Edmonton will increase seven percent year over year to about $ 437,000 by the end of 2021.

The demand for single-family homes will be at the forefront of the price gains. The biggest price jump was recorded in the second quarter with an increase of 16 percent compared to the previous year. The condominium market wasn’t lazy either, with prices soaring more than 12 percent year-over-year to $ 201,000.

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All in all, the market is among the cheapest in Canada, says Shearer.

“I showed our sales to someone in Ontario and they said, ‘I think I might have to buy some Edmonton condos now because they’re so cheap.’ ”

Nationally, total prices rose more than 25 percent year-over-year to $ 727,000, led by demand for single-family homes. Those gains are unlikely to continue at the same pace, says Phil Soper, president and CEO of Royal LePage.

In a published statement, he states: “We appear to have passed the peak of the price hike.”

The report predicts that the price will rise 16 percent nationally.

“In the past six months, rising prices and intense competition for the limited number of houses for sale have frustrated many Canadians because they couldn’t improve their housing,” says Soper. “When house prices stabilize, many of these potential buyers who have had time to build a larger down payment should have an opportunity to transact.”

While the market is expected to return to more seasonal activity by the end of the year as revenue growth slows due to the record activity, many uncertainties remain about the pandemic and expectations of growing economic activity and migration.

“There’s a ‘what can happen next?’ Make sense in the market, ”says Shearer. “But there is an optimism in the local economy that I haven’t seen in a long time.”

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