Breadcrumb Trail Links
Life Homes
Buyers are starting to adjust to the new, higher mortgage rates.
Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.
Article content
The city’s real estate market continues to be one of the most affordable in Canada, new data reveals.
“Edmonton is bucking the trend,” says local realtor John Carter, broker/owner of Re/Max River City Real Estate.
Article content
Across Canada, sales are rebounding from last year, and prices are, too.
Yet Edmonton remains a value buyer’s secret compared with other major markets, even Calgary — which has seen recent record sales and prices, driven by high migration.
Advertisement 2
Article content
When people think of Alberta, “by default, they think of Calgary first,” Carter says. “But from a residential real estate perspective, Edmonton is starting to hit the radar a little more significantly.”
He notes that Edmonton offers a lower overall cost of living and strong wages relative to other major cities.
Its housing is also increasingly affordable. Realtors Association of Edmonton data from July shows despite growing year-over-year sales, up nearly 15 per cent, the average price for all homes slipped year over year, down more than six per cent, to $381,800.
Prices fell across all segments, though sales were up for all housing types with the largest jump in condominium apartments up nearly 32 per cent year over year.
Interest rates are a major factor in the market, weighing on activity and prices, though less so than last summer, says Elton Ash, vice-president of Re/Max Canada.
“Last year at this time, the shock of interest rate increases were affecting people, but now, buyers are acclimatized.”
Even so, Edmonton has not shown the same growth in price in other markets, in part due to larger cities drawing more international migration. That includes Calgary.
Article content
Advertisement 3
Article content
“Edmonton didn’t show the overall strength that Calgary has shown, which factors into drawing out-of-province migration,” Ash notes.
But more non-Alberta buyers should give the city a close look given the affordability of single-family detached homes, he adds.
In July, the benchmark price of a single-family detached home in Edmonton was $437,600, down nearly six per cent from last year.
In contrast, the benchmark price of a detached home in metro Vancouver was more than $2 million, down about three per cent from last year. Even the benchmark price of an apartment condominium in Vancouver is significantly higher at more than $770,000 last month.
In Edmonton in July, by contrast, the benchmark price was $180,600 for an apartment condo while the townhome benchmark price was $239,700.
At the same time, median income is typically higher than most other cities.
Alberta government data shows family median income in Edmonton is about $134,000 annually. City of Toronto data shows median household income was about $106,000, despite the benchmark price of a home being nearly $1.2 million in July.
Advertisement 4
Article content
Carter says buyers from outside the province are tuning into the market’s relative value with realtors at his brokerage increasingly seeing two types of buyers from coming to Edmonton: remote and blue-collar.
“There was one pipefitter, for example, who came here saying that he could earn more than he could Quebec — and pay less for a home,” he says.
That said, most buyers are local first-time or move-up buyers, and higher rates are affecting their ability to buy, Carter notes.
Even so, demand remains strong for the market sweet spot: single-family detached homes priced about $400,000.
“Quality single-family homes at or under that price are seeing multiple offers,” Carter says.
“So, it can really be a heated sellers’ market conditions in certain segments and price ranges.”
Comments
Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.
Join the Conversation