Edmonton continues its streak as one of Western Canada’s most affordable housing markets, according to the latest Royal LePage House Price Survey.
Amid a large residential inventory, the city’s home prices contracted by 1% annually during the first quarter of the year, reaching $371,782.
Royal LePage stated that this shrinkage might level off soon, however.
“Home prices are down but they’ve reached a price floor,” Royal LePage Noralta Real Estate broker and owner Tom Shearer said. “We’ve already seen the drop and now we are in a relatively flat market.”
Two-storey homes saw their prices fall by 2.1% year-over-year to reach $420,656, compared to the 2.6% national average growth for this asset class. Meanwhile, bungalows enjoyed a 1.3% price increase to end up at $375,582, veering within range of the 1.1% growth in the national average.
Edmonton’s aggregate home price is predicted to remain relatively flat going into Q2 2019, with only a 0.4% decline to $370,416.
Shearer noted that the OSFI-mandated stress test had more of an impact on move-up buyers and investors going for rental properties, compared to other consumer demographics. This would imply that last month’s newly announced federal housing incentives might not have much effect on the local market.
“First-time homebuyers do quite well in Edmonton,” Shearer explained. “The stress test limited purchasing power for other buyer groups, creating an expectation gap behind what they want and what they can afford.”
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