Edmonton has stood out as an area attractive to investors and buyers. Evidently, Covid-19 has caused a snag in the real estate market in Edmonton. With the present recession, homes have retained their value. Due to government involvement in the industry, the real estate industry has been protected against stagnation. For many individuals interested in buying a home in 2020, the uncertainty is unsettling.
The cause for concern has been primarily on how the pandemic will affect the Edmonton real estate market. Will the mortgage rates decline? Are there people selling and buying homes? Here is an overview of the Edmonton real estate industry in 2020.
The Real Estate Market is Still Strong
This market has managed to remain stable and grow despite the low volume and high inventory. In April and May, there has been a drop in sales during the peak of the lockdowns. However, by June, the activities had increased by over 14%, more than the levels attained in 2019. Many of the transactions before Covid-19 have resumed with multiple offers in different neighborhoods and property types.
Overall, Edmonton's residential unit sales in September 2020 increased by 35.55% compared to September 2019, with the average price at approximately $376,571. This is a 7.14% rise from September 2019 and 0.54% from August 2020.
Many single-family home sales increased by 42.79% from September 2019 and remained steady in August 2020. On the other hand,Condo sales improved from September 2019 by 7.26% and decreased from August 2020 by 2.21%. The houses with bigger floor plans have been attractive properties. People have acknowledged that they need more space to work and still home-school their children. Also, industrial real estate in Edmonton is doing exceptionally well. With Edmonton growing as a distribution and warehouse center, progress is limitless.
Mortgage Rates
The deductions in prime rate have not affected the mortgage rates. This period is characterized by fixed rates, which have escalated with banks becoming more careful about liquidity and lending.
Currently, the variable mortgages are lower compared to the fixed rates. Brokers recommend that borrowers take advantage of the variable rates; nonetheless, they should stay informed and monitor the markets. This ensures they are ready for the fixed rates despite the fluctuating market conditions.
Expert Economic Predictions
Edmonton is becoming a more stable sellers' market, with properties staying in the market, on average, 53 days. Based on the RBC Economic, "a temporary shock" is inevitable with the presence of a global pandemic. However, the recovery will take place in stages to accommodate the various concerns. With an increase in the money supply by the Bank of Canada, the transition will be seamless.
Bottom-line, various factors need to be considered before deciding to join the real estate market this year. Aspects such as income stability, affordability, and interest rates, will influence buying and selling decisions. Work alongside our realtors. Check out our extensive resources that will equip you with the knowledge you need to make sound decisions.
Looking to buy or sell Edmonton Real Estate. Contact Us Gurpreet Ghatehora Edmonton Real Estate Agent RE/MAX RIVER CITY 780-951-6530 or visit https://www.edmontonhomesonsale.com
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