New numbers show the cost of homes dropped in Greater Edmonton last year.
Zoocasa released its most recent calculations which suggest the average home price in Edmonton and surrounding communities declined by an average of 1.3 per cent, or $4,793, over the course of 2018 to $369,607. However, the loss has varied throughout Greater Edmonton, according to Zoocasa’s numbers.
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According to the company, the hardest-hit community last year was Gibbons, where the average home price fell 14.6 per cent to $266,943, which was a loss of $45,537.
Sherwood Park experienced the second greatest decline, where the average price dropped 3.1 per cent, or $13,171, to $409,299.
Devon was third on the list, where the average price of a home falling 2.3 per cent, or $7,557, to $315,300.
Edmonton had the fifth largest decrease at 1.5 per cent or $5,783 to an average price of $371,634.
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Zoocasa’s study suggested out of the 11 communities in Greater Edmonton — St. Albert and Beaumont were the only communities who experienced a gain in the average home price in 2018.
St. Albert experienced an increase of 1.2 per cent, or $5,311, to an average home price of $432,127, while Beaumont’s average climbed 1.1 per cent, or $4,708, to $438,656.
According to the Realtors Association of Edmonton, sales in the city dropped 19.7 per cent year-over-year in December 2018.
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Zoocasa said the drop was a result of the new national mortgage stress test because it basically adds an additional two per cent onto the mortgage rate borrowers must prove they can afford in order to get financing. The company said that has reduced the budgets and types of homes many prospective buyers can purchase.
The new borrowing criteria were introduced in January 2018.
Zoocasa is a real estate brokerage that provides online search tools and data for Canadians to buy and sell their homes.
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