Before the ground has a chance to thaw, ‘for sale’ signs are starting to pop up on lawns across Edmonton and surrounding areas. More sunshine means the weather is warming up and so too is the Edmonton real estate market.
What does the peak Edmonton real estate season have in store for 2023? With the high costs of living and borrowing on the minds of many Canadians, what’s the outlook for the Edmonton housing market?
Here’s what you need to know if you’re planning on buying or selling a house this summer.
Demand for Edmonton homes for sale expected to continue
While the ad campaigns looking to entice Canadians living in some of the country’s most expensive cities to move to Alberta are undoubtedly grabbing attention (even if it is mainly eye rolls), migration to the province will continue to be a major player in the housing market.
With all Canadians feeling the pinch of the rising cost of living, Alberta’s relative affordability compared to other provinces is drawing people from other cities where home ownership remains out of reach despite falling house prices.
Edmonton Condos For Sale
High demand for homes in $250-400k price point
Experts predict the demand for affordable homes for sale under $400,000 in Edmonton will exceed the supply in this segment. Young families and first-time home buyers will be looking for lower-priced condos, townhomes, and duplexes as an affordable entry point into home ownership.
Higher borrowing costs have already had an impact on the rental market with low vacancy rates among rental properties in both Edmonton and Calgary. And as mortgages on income properties come up for renewal this year, landlords will need to increase rents to cover rising costs.
For some renters, lack of access to affordable rental properties will be the impetus for them to move into first-time home ownership.
Incentives For First Time Home Buyers
Edmonton real estate returns to a balanced market
Compared to the frenzied pandemic market that saw bidding wars and record home prices in Edmonton and surrounding communities, the start of 2023 marks a return to a more balanced market.
Currently, the sales-to-new-listing-ratio is about 43%. To put it in perspective, a ratio of 60% or higher typically favours sellers over buyers. A ratio below 40% typically reflects a market favouring buyers. The ratio in early 2022 was 63%. The ratio in 2019 was about 32%.
Even with falling sales year-over-year and increasing inventory, demand for single-family detached homes in Edmonton remains strong and prices are stable. In January 2023, the average price for a single family home fell only about 2% compared to the previous year.
In many respects, a balanced market represents ideal conditions for buyers and sellers heading into the busy season. Buyers have more inventory to choose from and can take their time to make an informed decision. Sellers will be assured by the relative price stability and will have more breathing room to plan their next move.
Don’t delay: Now’s the time to beat the rush
Market confidence has returned since the Bank of Canada’s announcement that interest rates will likely stand pat for the foreseeable future. And recent shakeups in the finance world have some predicting that the BoC may cut interest rates sooner rather than later.
Heading into the busy real estate season, lenders and mortgage brokers will be competing for business and offering the best rates possible.
Sellers should be prepping their homes for sale as soon as possible to take advantage of the early spring market while it is still ramping up. Buyers should engage with mortgage lenders and get pre-approved now. Now is the time to research real estate agents and find an experienced REALTOR® who can guide you through your home buying or selling journey.
All in all, the upcoming spring/summer outlook is quite positive and we’re very excited to work with our valued sellers and buyers in the Edmonton real estate market once again.
Do you have Edmonton real estate questions for Wally? Call/text him at 780.238.7384.