Edmonton Housing Market, Surviving Zombiepocalypse
If Brad Pitt was a Realtor in Edmonton, he will be extremely happy. Here’s another report that provides proof that Edmonton’s real estate market is strong and stable and will survive all the gloom and doom predictions.
The Canada Mortgage and Housing Corporation (CMHC) have released their “The Fall 2014 edition of CMHC’s Housing Market Outlook – Edmonton” last 30 October 2014 and Team Leading Edge is one of the first few real estate team to receive the information.
We have broken down their extensive report into bite sized pieces and we’re happy to serve it you in a golden platter (since silver is already overrated).
NEW HOME MARKET:
2014 have seen a moderation in the total housing starts in the Edmonton Census Metropolitan Area (CMA), this after a double digit increase in the past two years. 2015 and 2016 will experience lower housing starts.
CMHC further reports that “Although demand for new homes is being supported by rising employment, elevated migration, and low mortgage rates, the elevated number of units under construction, particularly on the multi-family side, has dampened housing starts in 2014.”
If you’re thinking of buying a home in the next few years, this forecast might come in handy, overall total housing starts are forecasted to reach 13,300 units this year 13,000 in 2015, and 12,300 in
Like our article yesterday, Edmonton Real Estate Report, What’s Happening In Our City, Single-detached family homes are on the rise. It has seen a 9% increase over the same period last year to 4,308. Good news to home sellers since the growth in employment, rising wages, low inventory and low mortgage rate would support this growth, although there’s a possibility of a slowdown come 2015.
EXISTING HOME MARKET:
According to CMHC, “sales growth will continue through 2016, demand for resale homes in Edmonton will remain robust in 2015 and 2016. Employment growth, low over into 2016 with price growth easing to 2.4 per cent. The average price will be $371,000 in 2015 and $380,000 in 2016.”
If you’re thinking of selling your property, the first 8 months of 2014 experienced a 60% average listings to sales ration. This trend is seen to spill over in 2015 and 2016.
RENTAL MARKET:
Demand for rental properties in Edmonton remain high due to rising employment and wages and elevated migration. Now is the perfect time to own a rental property. For a list of available investment properties in Edmonton, do check out our Edmonton MLS.
ECONOMIC OVERVIEW:
CMHC firmly believes that Edmonton’s economy will continue its growth path albeit at a slower pace in the next 2 years.
Consumer spending have gained traction due to wage gains and strong population growth. New money is being pumped out of the oil and gas industry as it remains an important component of Edmonton’s economic growth.
It is forecasted that unemployment rate will reach an average of 5% in 2015 and 4.9% in 2016. The report further states that “labour market conditions will remain relatively strong, putting continued upward pressure on wages, and supporting demand for housing. Wage growth has continued in the Edmonton CMA.”
During a 12-month period ending 30 June 2013, Edmonton experienced a record high of net migrants reaching a peak of 38,511. Although migration is seen to take a plunge at 31,000 in 2014, 24,000 in 2015 and 22,000 in 2016, it will still continue to contribute in demand for housing and growth in population.
MORTGAGE RATES:
It is seen to remain unchanged until the latter months of 2015. CMHC further expects “interest rates to remain unchanged until the latter parts of 2015 and then begin to increase gradually. Gradual increases in mortgage rates from historic lows are not expected to significantly impact housing demand.”
View complete report here.
PS. HAPPY HALLOWEEN FROM TEAM LEADING EDGE!
Tags: Canada Mortgage and Housing Corporation, edmonton economic forecast, edmonton housing forecast, edmonton housing market report, Edmonton Real Estate Forecast, edmonton real estate report
