YEG Housing Market Begins to Moderate
Monday, December 1st, 2014As we reach the final month of 2014, analyses and predictions are flooding in as to what we can expect from the future of the housing market. 2014 saw the highest resale price growth rate since 2007 with an expected average of $360,000, according to the Canadian Mortgage and Housing Commission (CMHC). These rates show a 4.4% increase in year over year sales figures, and while the Edmonton housing market has no shortage of momentum, rapid growth rates are expected to level out for 2015 and well into 2016.
The CMHC reported their fall 2014 market outlook at a conference on Tuesday.
The Edmonton Journal published a report Tuesday on the CMHC’s Edmonton Housing Market Outlook Conference. The article cites average resale prices at $371,000 and $380,000 for 2015 and 2016 respectively. Christina Butchart, CMHC senior market analyst for Edmonton addressed the this trend in moderation of prices.
“Right now, demand for resale homes in Edmonton is quite strong. Over the next couple of years, we expect that economic conditions are going to slow a little bit and that’s going to lead to continued growth, but at a bit slower pace in the resale market.”
As with all aspects of commerce, Edmonton home prices in the recent past have been driven by supply and demand. There have been fewer houses listed than the market demanded, leading to escalating home prices. Due to this apparent sellers market, many consumers have been motivated to list their homes causing an inevitable market saturation. The now larger numbers of properties available will force homes prices down by 2015 causing a ‘moderation’ of prices.
It should be emphasized however, this slowing growth trend is not to be taken as a sign of a weakening market. “The resale market is going to remain fairly balanced over the next couple of years as we see demand still being supported by our key components of employment and rising wages,” assures Butchart.
The CMHC has made their detailed market outlook publicly available for download. CLICK HERE to search for properties currently available in your area of choosing.
