Average residential home sale prices in Edmonton are expected to take a hit in 2019 while remaining flat in Calgary, according to the latest RE/MAX 2019 Housing Market Outlook, was released on Tuesday.
The report said Edmonton prices are expected to drop by an estimated five per cent next year.
RE/MAX said Edmonton’s average residential sale price has fallen by three per cent this year from 2017. In 2017, for the full year, it was $393,000 and it was $379,539 in 2018, between January and October.
“Edmonton may experience a decline of sales moving into 2019 as Alberta’s economy continues to recover,” said the report. “The federal government’s litmus test, higher interest rates and unemployment rates have led to a slow market overall in 2018 and is expected to continue into 2019.
“Conversely, the newly built luxury market is thriving with cannabis investors and migrant speculators purchasing homes, this may continue to drive the luxury home market in 2019. The upcoming May 2019 provincial election will be watched closely and, given the outcome, may help to shift the outlook for 2020 and beyond to a more positive one.”
The average residential sale price in Calgary in 2018 was $484,059. For 2018 between January and October it was $487,399, up one per cent. RE/MAX estimates no change in the price in 2019.
“Calgary’s market remains flat due to its reliance on the oil and gas industry along with the mortgage stress test and a slow economy,” said the report. “This is likely to continue into 2019 and market trends will be determined by what happens with the proposed pipeline along with the ongoing fluctuations in oil prices. The market is driven by first-time home buyers and move-up buyers. Older shopping centres turning into mixed-use developments, retail turning into specialty units and new condo builds are helping to increase supply in the commercial sector.”
The RE/MAX report said 36 per cent of Canadians are considering a home purchase in the next five years, down from 48 per cent at the same time last year and 65 per cent of Canadians said they do not want to live near a retail cannabis store.
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