The Edmonton housing market experienced a 60% increase in sales across all home types, propelled by growing families, the work-from-home trend, and the desire for more outdoor space. Edmonton is currently experiencing balanced market conditions, in contrast to the seller’s market conditions that are characterizing 26 of 29 regions analyzed in the RE/MAX Fall 2021 Housing Market Outlook Report. Balanced conditions are expected to persist through the remainder of 2021.
The highest demand within the Edmonton housing market is for single-family properties, with many pockets within the city experiencing seller’s market conditions, according to John Carter, broker at RE/MAX River City. However, while Edmonton is seeing a lot of multiple offer situations, blind bidding or extreme multiple offers are not a factor in this market, as they are in Ontario.
With a higher demand for outdoor space, there has been a dramatic increase in acreage demand and sales. Average prices for an acreage with a home increased 16% in a year. Carter attributes the notable increase in demand for luxury acreages and larger homes to increasing confidence in the market and low interest rates.
With low interest rates and greater affordability, many first-time homebuyers have been enticed into the Edmonton housing market across all property types this past year. Greater demand has prompted new construction development, which is also booming across all categories.
With new condominium developments available below the $200,000 price point, first-time buyers and investors from more expensive areas are taking advantage and the condo market is picking up. New single-family homes are popping up in mature and amenity-rich areas, with many still available around $400,000. As a result, young families are entering the Edmonton housing market, or moving to the region to take advantage.
While lower than historical levels, overall inventory is expected to remain healthy but down from peak summer levels. While pockets of Edmonton are tight seller’s markets, overall conditions are expected to remain balanced into the fall and winter months.
Average prices in the Edmonton housing market are expected to increase 4% in the remaining months of 2021.
From a broader perspective, most of Western Canada is experiencing price growth driven by low supply and high demand, resulting in challenging conditions for many homebuyers in large urban centres such as Vancouver. However, affordable options still exist for homebuyers who are considering alternative markets, thanks to their continued ability to work remotely. RE/MAX brokers have reported this trend in Edmonton and Calgary, where buyers are leveraging more purchasing power thanks to local housing affordability coupled with lower interest rates. RE/MAX brokers and agents anticipate this trend to continue through the remainder of 2021.
When comparing average sale prices year-over-year in Western Canada’s single-detached property segment, British Columbia saw the most notable growth, led by Nanaimo (+23%), Victoria (+19.1%), Kelowna (+20.5%) and Vancouver (+16.4%). Nanaimo and Kelowna also saw significant surges in their condo and townhome segments when compared to other Western Canada regions. Average condo prices increased 17.6% in Nanaimo and 17.3% in Kelowna, while townhome prices were up 21.9 % in Nanaimo and 17.7% in Kelowna. In Calgary and Regina, the fall outlooks are relatively status quo, with prices expected to remain flat in Calgary and +1% in Regina. Meanwhile, Edmonton, Saskatoon, Vancouver, Victoria, Winnipeg and Nanaimo are expected to see price gains ranging between 4% and 9% through the remainder of the year, according to RE/MAX brokers and agents.
National Canadian Housing Market Trends
Conditions in the Vancouver housing market are echoed across the rest of the country, with single-family homes seeing the most pronounced price increases year-over-year in 2021, rising between 6.8 and 27.3 per cent across 26 or 29 markets surveyed in the report. And much like Toronto real estate, activity in this property segment is being propelled by strong demand by young families, a trend that RE/MAX brokers and agents expect to continue through the fall.
The average residential price in Canada, across all housing types, is anticipated to increase 5% in the remaining months of 2021.
“Housing activity throughout the pandemic has remained strong, so it comes as no surprise that the outlook for the remainder of the year continues on an upward trajectory, which is great for homeowners and their equity, but challenging for first-time buyers who have been priced out of the market,” says Elton Ash, Executive Vice President, RE/MAX Canada. “We must continue to educate Canadians from a practical, real world, point of view. What is affecting the Canadian housing market right now? Low Interest rates, economic stimulus, higher home-buying budgets, a higher savings rate, homeowners too scared to sell, and not enough new construction. These factors have created current market conditions.”
Adds Alexander, “The Canadian housing market has historically given homeowners great long-term returns and solid financial security, but there’s no doubt that the rapid price growth we’ve experienced recently is cause for concern. However, it’s not cause for panic. The data shows single-detached home price acceleration may be starting to level off in some urban centres, but prices continue to rise in many smaller cities and communities that were once havens for affordability. Real estate has been a boon to the Canadian economy, during the pandemic and before it. We believe in the long-term health of Canada’s housing market, but in order to protect it, we need to acknowledge and address the housing supply shortage. Our current government needs to stop applying band-aids and cure the problem at its root.”