In its look-ahead report, the Realtors Association of Edmonton stated that sales will suffer a 1.7 per cent decline this year, while the average selling price of single-family properties will drop by 2.2 per cent.
“Buyers are continuing to remain cautious, and sellers are having to set appropriate expectations and evaluate their motivation and urgency,” association chair James Mabey said, as quoted by CBC News
On the other hand, the association projected “continued strength” in the $350,000 - $450,000 price range. Inventory will also remain at levels higher than those in years past, continuing the trend exhibited by the 52 per cent sales-to-listings ratio in 2016.
As the capital of one of the provinces hardest hit by the oil crashes, Edmonton has become one of the less desirable destinations for lenders. This has made it all but impossible for brokers in the city to provide the best mortgage packages for their client base.
“In Alberta, we want to see the price of oil continue to strengthen,” Robert Goodall, president and CEO of Atrium Mortgage Investment Corporation said. “We haven’t been active there in the last 18 months but we’re hoping to dip our toe in [again] in 2017 but it will depend on whether … oil prices get to a point where the economy starts to recover.”
A look-ahead: Trends that could impact the industry this year
Canada-wide forecast: What investors need to know
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Edmonton would-be sellers may have to hold on to their offerings for a bit longer than usual in 2017, as the city’s real estate agent association recently predicted a less-than-stellar year for sales volume and purchase prices.