Edmonton one of the steadiest markets in Canada

Edmonton home prices may have declined slightly in the second quarter of 2018, but they’re expected to pick up by the end of the third quarter, according to Royal LePage.

According to a Royal LePage House Price Survey and Market Survey Forecast, the aggregate price of a home in Edmonton declined modestly in the second quarter of 2018, decreasing 1.4 per cent year-over-year to $377,218.

When broken out by housing type, the aggregate price of a two-storey home inched downwards 0.7 per cent year-over-year to $436,722. The aggregate price of a bungalow also decreased 1.5 per cent year-over-year to $369,100, while the price of a condominium decreased 5.3 per cent year-over-year to $223,787.

However, Royal LePage forecasts that the aggregate property value in Edmonton will rise by the end of the third quarter.

Edmonton market one of the steadiest in canada

During the second quarter of 2018, supply in the Edmonton region reached new heights, rising to levels not seen since the global financial crisis in 2008. While this gave purchasers more selection and bargaining power when looking for a home, prices remained relatively stable due in part to sales activity, which hovered near the five-year average.

“Edmonton continues to be one of the steadiest real estate markets in Canada,” says Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. “Even with all of the selection available right now, there is enough demand present in the market that, when priced correctly, a home will sell relatively quickly.”

Looking forward to the end of the next quarter, Royal LePage forecasts that the aggregate property value in Edmonton will rise 1.0 per cent quarter-over-quarter to $381,177.

Price appreciation slowed across Canada

Nationally, home price appreciation slowed across Canada in the second quarter of 2018, marked primarily by softness in the Greater Toronto Area (GTA), where many regions have witnessed year-over-year price declines.

“It was a spring market that never blossomed,” says Phil Soper, president and CEO, Royal LePage. “As anticipated in our original 2018 forecast, the new federal mortgage stress-test measures slowed the market to a standstill in much of the country, as some families adjusted their expectations in a world with lower borrowing capacity, and others not impacted by the OSFI regulations moved to the sidelines, adopting a ‘wait and see what happens to home prices’ approach.”

forecast: Increasing sales and prices in second half

Looking ahead, Royal LePage is projecting an uptick in home price appreciation in the third quarter and forecasts that the aggregate price of a home in Canada will increase 1.9 per cent over the next three months.

“The economy is strong and unemployment is very low,” Soper continues. “We face shortages in our major cities, with many more people looking for homes than the market has available for purchase or rent. Upward pressure on prices will likely return to most markets during the third quarter.”

For more information, visit royallepage.ca