As we wind down the wild year that was 2022, many are curious what the Edmonton real estate market in 2023 will bring.
Despite higher interest rates and a looming recession, a balanced real estate market in Edmonton is expected to continue in 2023.
In a balanced market, the scale is not tipped in either the buyer’s or the seller’s direction. With supply and demand close to equal, both buyers and sellers can look forward to continued stability in the market in the upcoming year.
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Edmonton home prices expected to increase in 2023
Even with higher interest rates, most experts are predicting a modest increase in Edmonton home prices in the coming year. Detached single-family homes will continue to be the most in-demand home type particularly among move-up buyers.
The average single-family home price in Edmonton in 2023 is expected to rise by 2-3% from $481,800 to $491,436.
Condo prices, however, are expected to drop marginally by about 1.5% from $201,300 to $198,281.
Compared to the rest of the country, the Edmonton market is expected to fare quite well. Experts suggest the aggregate home price in Canada will decrease by 1% by this time next year before trending back upwards by year’s end. Fueled by migration from other provinces, Alberta’s major cities will continue to see strong demand for housing.
Average Canadian mortgage rate in 2023
While it is always challenging to predict what will happen with interest rates, experts still generally agree that it will take somewhere between one to two years for inflation to subside enough for rates to decrease.
The timing may depend on how fast and how hard a recession hits. Most of Canada’s big banks are looking at a recession coming sooner rather than later in 2023 and signs also suggest we will experience a harder-felt recession.
In the case of a more severe recession, inflation will likely reduce more significantly and, as a result, Central Banks will have to lower rates again to help stimulate the economy. The Bank of Canada projects it will take until early 2024 for inflation to subside to a level that will warrant a reduction in rates. However, if the economy is harder hit by the recession, we could see lower rates in 2023.
It is also expected that rates will not drop to the same record lows we saw in the past couple of years. It is expected that rate normalization will bring mortgage rates closer to the low 3% range.
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A balanced outlook is a good outlook for buyers and sellers in Edmonton
Overall, the outlook for the Edmonton real estate market in 2023 is good. A balanced market is a good place to be whether you’re a buyer or a seller.
Buyers don’t have to worry about bidding wars or losing out on a property if they don’t make a snap decision right away. And sellers looking to sell a home in 2023 can be reassured that home prices are not expected to fall considerably in the Edmonton market.
What are your home ownership plans for 2023? Connect with Wally at 780.238.7384 and get answers for all of your Edmonton real estate questions.