Edmonton’s housing market is heating up thanks to a supply shortage caused by the COVID-19 pandemic, according to a new real estate survey.
Royal LePage’s housing price survey for the first part of 2021 shows the average price of a home in Edmonton increased five per cent from last year to $379,461. Prices are anticipated to increase by another four per cent by the end of 2021.
Tom Shearer, a broker and owner with Royal LePage Noralta Real Estate, said the Edmonton market has been busy but there have been some issues with inventory. He said the shortage started around May and June last year when sellers became hesitant to put their homes on the market.
“The buyers came back to the marketplace before the sellers did,” Shearer said. “We’re moving into the busiest time of the year for real estate. I don’t think demand has been satisfied yet from last year, let alone what’s going to come this year. Our market is hot right now but it’s continuing to be stable.”
He said first-time buyers are being very active in the Edmonton market by taking advantage of low-interest rates and any extra savings accumulated since the start of the pandemic.
Shearer said it is now a good time to sell property that may have been difficult to move previously. He said he hopes more inventory will come onto the market throughout the year, and he noted there are signs of activity ramping up.
According to the survey, the price of a two-storey home increased 4.1 per cent to $443,460 since the start of the year while a bungalow jumped up by 8.7 per cent to $366,1010. The average price of a condo decreased by 4.3 per cent to $196,641 over the same time period.
Shearer said in some parts of the country, houses are selling more than 50 per cent above the asking price whereas in Edmonton about 21 per cent of homes are sold over the listed price.
“Most transactions are still securing a home inspection or a financial condition,” he said. “While the market is hot and you have to be decisive as a buyer, you still have the ability to go in with an offer where you have an opportunity to have that sober second thought. I think that’s really a nice place to be in, in the real estate market where you don’t have to overcommit to a property that you may not be ready (for).”