While Calgary and Edmonton are in similar economic situations, and under the same rules and regulations, their real estate markets are very different from each other. These are the key points of difference between Calgary and Edmonton’s real estate markets, and what that means for you.
1. New Home Selection
It seems like Edmonton has more brand new homes still waiting to be bought over Calgary. While Edmonton has over 400, some of which are spec and show homes, Calgary has only 254 new homes that can possibly be purchased. So if you’re looking for a brand new home, Edmonton is a safer bet.
2. New Developments and Projects
Construction has slowed down in Edmonton and Calgary since the New Year. It’s unsurprising, but that doesn’t mean work has halted. Certainly in Edmonton, you only need to head down to Ice District to see plenty of homes are still being built, they’re just not single-family detached homes. Calgary has over 1600 new single-family home projects underway, while Edmonton has just over 1400, meaning they’re pretty much neck and neck for construction projects in that area. But Edmonton may be leading in condo development simply because of Ice District.
3. Resale Homes
Resale homes are becoming more popular as new developments become more and more sparse. The end result is more people buying resale homes, which haven’t taken as large a hit as one may expect. In both Edmonton and Calgary, homes have dropped by roughly the same percentage, but still remain pretty high.
4. Pricing on Resale Homes
Another big reason that resale homes are becoming more popular is because they are a little bit cheaper as well. But the amount has dropped only slightly in the recent months. In Calgary, you average single-family home dropped from $493,400 to $489,250. In Edmonton, prices have dropped from $415,000 to $404,000. Overall, the drop was felt more in Edmonton than Calgary, but isn’t a significant drop either way.
5. Prices for New Homes
Million dollar homes are still popping up in southwest Calgary, and for good reason, new home prices are still rising despite current economic changes. In Calgary, the average new home is worth $776,816 according to CMHC. In Edmonton, the price rose from $536,713 to $606,103 over the past year. So while resale homes are more common, new homes are more rare and, as a result, still appreciating in value.
While Edmonton and Calgary may have seemingly similar real estate markets, they have some important differences in these new economic times. By sorting out the differences, you can discover what’s the best real estate decision for you in your city.