Private Remarks | An Insider's View of Edmonton Area Real Estate this Week

This week in the RAE REALTORS Association of Edmonton 2021 Forecast:

Price Trends

• The All Residential average price expected to come down from the slight rise in 2020 to be closer to the average price in 2019.
• Single Family predicted to hold values better than duplexes & condos.

Demand

• As a whole RAE called purchase activity to decline which will be the cause of prices softening. The number of purchases is anticipated to be less than any point in the last 5 years.

Inventory

• Luckily, with the expected decline in demand, RAE is anticipating the number of listings to be down in condos (-2.2%) and duplexes (-2.0%) more so than single-family properties.

Benchmark

• According to National MLS HPI Benchmark Prices in November of 2020, Edmonton’s average price set it’s rank at 32 in the country at $322,700.
• The most expensive average price was Oakville-Milton at $1,155,300 followed by Greater Vancouver at $1,044,000
• There wasn’t any representation from Alberta in the Top 10
• Turbulence Alert
• Downtown condo sales have seen some of the highest spreads between supply and demand
• RAE is calling a 24% drop in sales and a 6.4% decline in average price

Our Market:

• 842 New Listings in the last 7 days during the shutdown
• 699 Sales since the year opened.

In the News:

• Energy Efficiency rebates that average $1,500 depending on the improvements done to the home launched in Edmonton. The average 1985 home would have to improve by 53% to equal the current standard for new builds.
• https://edmontonjournal.com/news/local-news/edmonton-launches-three-year-rebate-program-for-residential-energy-efficient-upgrades-to-reduce-carbon-emissions
• Calgary Herald reports a resilient housing market overcoming the uncertainty of 2020
• https://calgaryherald.com/opinion/columnists/varcoe-a-pandemic-an-oil-price-crash-yet-an-improving-alberta-housing-market-exiting-2020