Edmonton, Alberta’s first quarter market report was a positive start to 2020. March began with overall residential unit sales up by 8.3% in comparison to this time last year according to a recent report by the Realtors Association of Edmonton, and the amount of new on market listings was up 4.21%.
“The Edmonton market prices remained stable [this February] and we saw an increase in year-over-year unit sales.” Mentions Jennifer Lucas, Chair of REALTORS® Association of Edmonton. One of our luxury affiliates, Mani Bagga reports many local buyers from across Alberta contributed to much of the recent real estate sales.
While residential housing prices have remained relatively stable throughout the area of Edmonton over the last quarter, Mani predicts the luxury real estate market could expect to see a market shift in the near future due to a couple of factors.
If you’ve been following global market prices, you’ve probably noticed a recent plummet in oil and gas. While Alberta’s economy is heavily reliant on the sale of crude oil, with each $1 drop in price representing about a $200 million cut from their bottom line, Mani expects to see correlating changes within the local residential real estate market.
Additionally, Alberta’s real estate market does not seem to be immune to the recent coronavirus pandemic. With effects said to vary from region to region, Alberta’s real estate market may start to experience various factors of this as well. In fact, the Calgary luxury housing market has noted zero transactions over $4 million in the last month, and the benchmark price for these homes has fallen by 1% annually last month, according to Sotheby’s International Realty Canada.
However, this could be good for some. While a market analysis by Sotheby’s stated, “definitive buyers’ market conditions are expected for the City of Calgary’s top-tier real estate market in spring 2020 as the provincial economy confronts the monumental challenges of falling oil prices and the COVID-19 crisis”. Mani suggests prospective buyers could anticipate an increase in inventory and days on market for listings around the Edmonton area.
It’s not all despair, as a recent study by the Altus Group suggests a stronger 2021 may be in store. “As the economic recovery sets in with stronger growth this year and next, rising in‐migration and sustained job growth will boost consumer confidence and help to increase new home construction, more so in 2021,” it stated. Among this, lower interest rates and lowered housing prices will create improved affordability and home sales for the Edmonton real estate market in the future.
This LH Market Update is provided by, Mani Bagga with Royal LePage Noralta. Want your office’s real estate market report featured on our site? Make the most of your LH affiliation and contact us today! Not a member? Join LuxuryHomes.com and start listing with the best!
Realtors Association of Edmonton
Mortgagebrokersnews.ca – Market study points to stronger 2021 for Alberta’s housing sector
Forbes.com – Coronavirus’ Impacts On Real Estate: Why You Need To Think Short-Term And Longer-Term
Mortgagebrokersnews.ca – Calgary’s luxury market remains listless amid economic struggles
Mortgagebrokernews.ca – Mixed growth rates seen across Alberta housing market