The average selling price for a single family home in Edmonton (as of June, 2014) remains steady and sits at $435,534. Some say it is poised for a correction while others say that $435,534 represents exceptional value for a single family home in a major Canadian city like Edmonton.
I believe that it’s much easier for local buyers to experience the ‘sticker-shock’ of home prices in Edmonton. Local buyers were the ones who remember their neighbor's home selling for $150,000 in the 1990’s, then in the high $200,000’s in the mid 2000’s, so it’s easy to see why as a local we can’t imagine these same properties going for 5, 6 or even $700,000, but they will!
Surely anyone moving here from Calgary, Vancouver, Toronto, Montreal, or Ottawa arrives in the land of affordability in Edmonton since our prices are still lower and more affordable than any other major Canadian market. This is according to the RBC housing affordability index and the next index is expected to be released later this summer. So, what’s the option? Renting? Well our rental accommodation market is as tight as it’s ever been and with rents increasing. It’s not long before a renter realizes that he’s making a mortgage payment and decides to buy his own home rather than paying off the mortgage of his landlord.
Given the outlook for the Edmonton real estate market, I believe that we are in another prolonged and sustainable period of growth. We have people from all over the world moving to Edmonton for work. These people need to find a place to live and with builders struggling to keep up with demand (again), the resale prices for existing inventory will continue to increase. Through the end of this year, I would expect that inventory for sale will keep pace with demand and we won’t see any significant price increases but by spring of next year it’s hard to see prices stay at current levels. Personally, I would expect that single family home prices will average in the area of $470,000. So there, does $435,534 sound better now? If you’re on the fence, it’s time to own it. You won’t regret it.