The Edmonton resale property market is rising

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“Right now we’re seeing really strong momentum in the New Year,” says Tom Shearer of the Realtors Association of Edmonton.

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Joel Schlesinger for the Edmonton Journal Given the strong resale market, the question remains whether supply will keep up to keep prices in check. Given the strong resale market, the question remains whether supply will keep up to keep prices in check. Photo by Ian Kucerak /Mail media

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The Edmonton resale market did not let the cool weather cool down in November.

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The latest figures from the Realtors Association of Edmonton show that sales for the Greater Edmonton Area increased nearly 31 percent year-over-year, with 1,823 transactions.

“The activity is pretty insane as inventory is down about 6.5 percent year over year,” said Tom Shearer, chairman of RAE. He notes that the sharp decline seems to indicate that the Edmonton market may move to longer-term growth rather than riding the pent-up wave of demand from the pandemic.

Sales aside aside, the average city home price wasn’t much higher in November than in November 2020, the figures show.

The average resale price of a home sold in the Greater Edmonton Area rose two percent year over year to $ 384,000.

Overall, the slower price hike is a good sign for the city’s resale market, Shearer says.

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“We’re still incredibly cheap compared to the rest of the country.”

Robert Hogue, chief economist at RBC Economics, notes that pre-pandemic Edmonton and Alberta started off from a lower starting point than other hot markets like Vancouver, Montreal and the greater Toronto area.

“In the case of Alberta, it is in the context of a provincial economy that is picking up momentum with a recovery in the oil and gas industry and labor market growth.

Hogue adds that energy prices may have fallen slightly in the past few days due to concerns about the new Omicron variant, but the economy is in much better shape than in previous years.

While energy prices are likely to remain very volatile, “confidence is gradually coming back and that is improving the landscape for the housing market,” he says.

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Even without another oil and gas boom, Edmonton’s resale market has all the ingredients for robust growth, Shearer notes.

That being said, 2021 appears to be a record year for the activity, with annual sales exceeding 23,300 for the region.

“In my time in this business, I haven’t seen more than 20,000 transactions (in a year),” said Shearer, broker owner of Royal LePage Noralta Real Estate.

“Right now we are seeing really strong momentum going into the new year.”

Hogue adds that as migration increases, especially international arrivals, the market could grow even faster if the energy sector continues to gain momentum.

“That will be a plus for the demographics for the Alberta market,” which is driving housing growth, he says.

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The market already has a number of tailwinds, Shearer notes.

“For example, we have higher average salaries compared to other parts of the country,” he says, referring to 2019 data showing that the median family income in the city was $ 97,800, compared to about $ 62,900. Dollars domestically.

Coupled with the city’s relative affordability, the real estate market should remain in growth mode for the foreseeable future, he says.

“Right now we’re seeing really strong momentum for the New Year,” he says. “Activity is still very strong and the major concern right now is whether there will be enough inventory to keep prices in check.”

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