Calgary and Edmonton, as anyone in Albert’a biggest cities will know, are very different places. They’re linked together geographically, being relatively very close to one another, and in industry, but the feel and people are often seen as quite different. These differences apply to each city’s respective housing markets as well, which were perhaps more different in 2015 than in any other year previous. Here are just a few of the key differences between Calgary and Edmonton’s housing markets in 2015, why those changes happened, and what they can tell us about 2016.
Edmonton is still growing according to housing construction, especially in the single-family housing market. Lat year, the province’s capital saw 5,683 single-family homes break ground in 2015, while Calgary started construction on only 4,138. The spread is significantly different from 2014, which saw 6,832 new homes in Edmonton and 6,494 in Calgary. What this shows is that there is still room for controlled growth in each city. And while Edmonton’s Ice District is encouraging multi-use buildings in the downtown, the city is still leading in housing construction as well.
2. New Housing Pricing
The housing market still saw increases in 2015, albeit modest growth, in both markets. In Calgary, the average cost of a new single-family unit in 2015 was $714,020, an increase from $645,373 a year earlier. In Edmonton, the same house was worth $568,989, rising from$553,477 in 2014. Calgary saw a marked increase in value over Edmonton, so while the capital was building more of these homes , they were selling them overall for less money, which could cause problems for the Edmonton market in the coming year.
3. Resale Values
Of all the sectors of real estate in both cities, this is the area where prices and statistics saw the biggest falls. According to the board, the city had only “11,517 transactions, down from 15,093” in 2014. Edmonton saw less of a drastic change, moving 10,517 units compared to 2014’s 11,539. Unsurprisingly, Calgary also saw a drop in resale housing prices in 2015, while Edmonton saw very modest growth, showing that homes can still move in the North, even if they’re not brand new.
Overall, Edmonton and Calgary’s real estate markets proved to be very different from one another in 2015, showing that Alberta’s economy affects different parts of the province in different ways. By looking back, we can get a glimpse into each city’s future, where they could be heading and the challenges ahead. Of course, it can also show where deals can be had, and which markets are still performing strongly, too.