Despite Edmonton’s recent sales numbers drops in the real estate markets, including from month to month and by the year, experts say Edmonton is still at a low risk for a housing correction, which is a good thing for both buyers and sellers.
According to reports released by The Canada Mortgage and Housing Corp., commonly called the House Price Analysis and Assessment, Edmonton and Vancouver are the only cities researched that remain at a low risk for the need to intervene in the real estate markets. Even though Edmonton’s downward turn since last year has affected the markets, and indeed our entire government, the CMHC says the housing market is still relatively stable.
The report looks at four different categories to determine the volatility of real estate markets in various cities: price overvaluation, number of building projects, accelerated price growth, and overheating. Each of these leads to certain behaviours, including rumour-building, anxiety of “missing out” on the current situation, rapid increases in pricing in all types of property, and media sensationalism. Each of these behaviours directly impacts the housing market and, well, Edmontonians have generally decided to stay stoic when it comes to real estate, and that’s helping prices.
And that’s good new compared to other markets across the nation, including Toronto and Regina, who are each at moderate to high risks for a correction after certain factors have impacted their own local economies. For Toronto, the rapid price inflation and overbuilding could see a bubble burst over the next few years. For Regina, depreciating values have not helped home owners move units, even as the town itself has levelled off.
Of course, this assessment could change as we head towards the winter, where slowing house sales can lead to market hysteria, but as long as housing prices and sales remain relatively stable, Edmonton can remain in the black. Experts all agree, however, that an economic upturn or further moderation of housing prices can all help the current market, and keep Edmonton away from a dreaded correction.