REALTORS® forecast slight growth for 2018
Edmonton, January 10, 2018: The REALTORS® Association of Edmonton released its annual housing forecast today at a seminar at the Shaw Conference Centre attended by 600 REALTORS® and business leaders. Chair Darcy Torhjelm forecasted that sales volumes and prices of residential homes in the Edmonton Census Metropolitan Area will continue to remain relatively stable in 2018.
Single family homes performed well in 2017, with both an increase in year to date sales by 1.15% and an increase in year to date average prices by 0.77%. Unit sales are predicted to continue to remain stable throughout 2018, with a slight increase of 0.88% predicted.
In 2017, condominium year to date sales increased by 0.42% and year to date prices decreased 0.96%. In 2018, it is expected that unit sales will continue to decrease, by 2.42%, with a decrease in average sale price by 1.91% and an increase in inventory by 4.42%.
Duplex/rowhouses continue to gain in popularity as an alternative to single family homes, offering both affordability and an ownership model that appeals to many first time buyers. Duplex/rowhouse year to date sales increased by 5.42% and year to date average prices increased by 0.12% in 2017. Forecasts suggest an increase in unit sales by 3.74%, an increase in the average price by 0.14% and an inventory increase of 0.68%.
“For most of 2017, we continued to see home buyers take advantage of low mortgage rates and a slightly increased inventory, while sellers enjoyed stable prices for their properties,” said Darcy Torhjelm, Chair. “It is still too early to tell what impact the new mortgage stress test will have on the real estate industry. However, recent job gains coupled with rising oil prices gives us reason for optimism regarding forward growth in the Edmonton and area resale housing market.”
In addition to Torhjelm’s forecast, other speakers at the seminar included John Rose, Chief Economist, City of Edmonton; Brent Weimer, Senior Market Analyst, Canadian Mortgage and Housing Corporation; Doug Porter, Chief Economist & Managing Director, BMO Financial Group; and Dr. Jack Mintz, world-renowned economist, academic and public policy analyst.
There are 3,500 REALTORS® operating in the greater Edmonton area, as well as Cold Lake, Wetaskiwin, Drayton Valley, Vegreville and Westlock.