A recent study has shown some surprising numbers for those who thought Edmonton’s real estate market was declining. According to a House Price Survey and Market Survey Forecast released on January 13 by the real estate company, prices were actually up a modest amount year-to-year, indicating that the market is not declining at the rate expected, but it managing to stay afloat despite talks otherwise by detractors, both in Edmonton and around the country.
The surveys showed a solid yet modest increase of 1.6 per cent year-over-year, putting recent average housing prices at $380,502. This is especially important coming in the fourth quarter, a period of time that is usually very slow and prone to feeling the compounded effects of a slowing economy, especially as the holidays dissuade people from heading out and looking at homes.
When broken down into the types of houses, the growth isn’t universal and somewhat surprising. Two-storey homes increased by a margin of 3.2 percent year-to-year to an average price of $454,036. Bungalows were relatively flat at a 0.2 percent increase, which may not even cover inflation. The real surprise, however, came with condos, which saw a modest fall in pricing by 1.9 percent, to an average of $232,389.
The fall in condo pricing may be a result of the development happening in the downtown Ice District, with people holding off their purchases until they see what’s available in the new, much-hyped area. The prices could similarly be falling as younger condo owners may have needed to sell their homes as a result of the declining economy and massive layoffs. Either way, the drop in condo pricing is bound to effect some of the more vulnerable populations who are trying to get into the housing market.
Edmonton’s fourth quarter reports are a welcome bit of good news in today’s real estate market, which hasn’t had a lot good to say for those who want to sell their homes. The first quarter of 2016 may bring different information, but for now, the modest increases in housing offers a hopeful look towards the future, especially as the new year is now in full swing.