If you watch the nightly news, there are lots of stories about the crash in real estate prices. The problem is, these stories are aimed at audiences who have endured the overcooked markets in Toronto and Vancouver. We’ve gawked at those two cities and their unsustainable real-estate bubbles for a while now.
We can easily assume those trends translate to Edmonton, but they don’t. On Tuesday, Royal LePage released its overview of the Canadian real estate market. And, despite rising interest rates and economic uncertainty, it predicts that the price of the average Edmonton home will rise from $438,300 in winter of 2022 to $442,683 by winter of 2023. It’s a modest increase, but an increase, nonetheless.
“I tell people that Edmonton is the least exciting real estate market in the country,” said Tom Shearer, broker at Royal LePage Noralta Real Estate. “We don’t often see big jumps, and we don’t see big drops.”
So, if interest rates are up — if we’re looking to save money at every corner — why are homes maintaining their values in Edmonton, while we’re reading about freefall in other cities? Shearer employs 165 agents, and he said the feedback he gets is that about one in six people in the home-buying market is from out of town. Those people looking to move into Edmonton are helping the demand side of things.
“Edmonton has a lot of things going for it,” says Shearer. “First, people say, ‘I can get a job that will pay me well.’ Second, they say, ‘When I land that job that pays me well, I can own a home that’s close to my job, that is pleasant.’ They realize that this makes them happy.”