There is always a lot of talk about how healthy the Edmonton real estate market is, but it hasn’t always been that way. During the recession, when oil prices tanked across the country, Edmonton suffered too – most notably in real estate. There was such a massive population boom in the city in the mid-2000’s that housing construction went through the roof, and not three years later the national economy took a major blow. This halted much of the cities expansion, however, with the recovery of the economy came renewed interest and population influx into Edmonton and other areas of Northern Alberta. The surplus of homes seen in and around 2008 and 2009 have long since disappeared and a new construction boom is well underway.
Is the Price Right?
The Edmonton real estate market was a much more formidable place in the early 2000’s then it is now, and by comparison to the rest of Western Canada, homes here are literally a steal. Nonetheless, the market is quite a shocker for people moving East to West for work or school. While it all really becomes relative to the general cost of living in the city versus the wages paid here, sticker-shock is unavoidable. To put it in perspective, analysts point out that while a single-family home in the Edmonton real estate market typically runs a buyer about three times their annual income, places in British Columbia are selling for about nine times the amount of the average annual income.
Making the Investment
Although the market isn’t seeing the whopping gains it was earlier in the last decade, it is considered a reasonable, healthy and promising market to invest in. Annual gains are somewhere around 4-5% annually on Edmonton real estate, which is healthy, if nothing else. There is a lot of opportunity to flip homes to increase those values, but despite it no longer being a whirlwind market, it is certainly a safer one, that doesn’t have as far to fall should future economic crises arise.