All things considered, 2013 was a very good year for the Edmonton real estate market. Total residential sales were up nearly 8% over last year, and prices increased moderately showing strength in our market without putting extra pressure on buyers. People moved to the Edmonton area in droves, and the vacancy rate on rental properties fell to the lowest rate we've seen since 2006. Construction of multi-family properties set a new record in 2013, while single family construction increased moderately over last year. Here is our summary of 2013 compared to 2012:
Lets take a look at December, and then I'll give you our predictions for 2014. Sales were strong in December, there were 790 sales - nearly 18% ahead of last year.
The average residential sale price was $350,208, up 2.87% from last December. The median sale price was $328,000, up 2.82% from last year.
The inventory hit its lowest level in at least 5 years, falling to 3,049 listings.
So what do we have to look forward to this year? The REALTORS® Association of Edmonton made these predictions:
- The average price for single family homes will increase by 3% in 2014, taking us back to or above peak prices
- Sales of single family homes will remain steady within the City limits, while sales outside of Edmonton will increase by about 1000 units
- Average condo prices will increase 2% while sales of condos will increase by 2.5%
- Employment growth in the Edmonton area just over 2%
- Net migration into Edmonton at about 20,000 (2013 estimate is about 26,000 but hasn't been tabulated yet)
- Gradually rising average price
- Construction of single family homes to continue to grow moderately (int's been growing for three years
- After a very strong 2013, multi-family construction will moderate in 2014
John Rose, Chief Economist for the City of Edmonton forecasts:
- Alberta will continue to outperform the rest of the country
- Edmonton's growth will slow in 2014
- Continued job growth
- Inflation to pick up
Of course, there are external factors that impact the housing market, that none of us can predict. Mortgage rates have to go up sometime, will 2014 be the year? Will the Federal Government tighten mortgage lending rules again this year? Will consumer confidence in Edmonton be affected by financial situations in other parts of the country, or the world, regardless of our situation here in Edmonton? I don't have a crystal ball, but the predictions made by the REALTORS® Assocation of Edmonton, the Chief Economist for the City of Edmonton and CMHC seem reasonable to me. What do you think?