EDMONTON – The falling price of oil may be having an impact on some parts of Alberta, but so far Edmonton’s red-hot real estate has yet to feel the pinch. The prices of all types of homes are up, with condos seeing the biggest spike, said real estate company Royal LePage.
In the fourth quarter of of 2014 (October – December), the city’s housing market was “exceptionally strong”, according to the Royal LePage House Price Survey and Market Survey Forecast that was released on Wednesday morning.
“One of the interesting trends we witnessed in 2014 was that average real estate prices in the city continued to climb in the last few months of the year, whereas in the past, prices tend to soften as the cold weather arrives,” said Tom Shearer, broker and owner of Royal LePage Noralta Real Estate.
Get daily National news
The value of single family homes reached a new high in 2014 by cracking the $400,000 mark, according to property tax assessments mailed out by the City of Edmonton in early January.
On average, the value of condos, town homes and duplexes increased 5.3 per cent, apartments went up 9 per cent, while commercial and industrial properties increased 2.8 per cent.
READ MORE: Value of single-family homes in Edmonton reaches new high
“Average home prices in Edmonton have been on a hot streak over the past year as the city continues to experience strong economic growth,” said Tom Shearer, who says the mass influx of new residents over the past four years has led to a seller’s market.
“With more buyers competing for homes, it is no surprise that home prices have appreciated considerably,” he added.
Here’s a breakdown of how prices increased in Edmonton, according to Royal Le Page:
- Two storey homes rose in price by 9.4 per cent over Q4 2013 to $397,045
- Standard condos rose in price by 12.2 per cent over Q4 2013 to an average of $250,953
- Prices for detached bungalows rose 8.3 per cent over Q4 2013 to an average of $373,244
Looking ahead to 2015, prices are forecasted to continue to grow through the year, but at a more subdued appreciation of approximately 2.5 per cent.
As for the rest of Canada, Royal LePage says the price of a Canadian home is expected to rise by a relatively modest 2.9 per cent on average in 2015, as price appreciation slows across the country.
READ MORE: Decline in oil price to impact real estate in 2015: Royal LePage
Comments