Demand Could Put Pinch on Affordable Edmonton Housing Market

Much like other Canadian regions, the rising cost of living is a primary concern in the Edmonton housing market in 2023; however, unique to this region is the growing demand on real estate from inter-provincial migration, as Canadians continue to search for pockets of affordability across the country. Despite a fluctuating economic environment, Canadian homebuyers and sellers are optimistic that 2023 could yield a more-balanced market, according to RE/MAX Canada’s 2023 Industry Trends Report. The report examines key economic and transactional trends that are likely to impact Canadian homebuyers and sellers, and the broader real estate industry this year.

According to a local RE/MAX broker in Edmonton, this is likely to put further strain on an already-limited housing supply.

“Navigating the most influential trends this year will be challenging. I recommend interviewing at least three REALTORs® before hiring one; thoroughly scanning their client reviews and social media presence and asking for relevant past performance statistics. Pricing guidance when selling is also critical in 2023, with many listings not accurately priced,” says John Carter, broker and owner, RE/MAX River City. “Aside from the guidance we can provide on an ongoing basis, in order to truly help Canadian homebuyers and sellers achieve their goals, it’s critical that we look at effective, collaborative and visionary ways to increase housing supply across all levels of government.”

Key Trends in the 2023 Edmonton Housing Market:

1. There are many properties in the $250-400k range in Edmonton’s market, unlike other major centres in Canada; however, rising costs of ownership in combination with higher interest rates are causing a “pinch” in the demand for affordable properties in this market: more people are being pushed into this price segment due to rising interest rates, increased rents and rising demand from investors. This means there’s not enough supply within this affordable price point and product segment to match the demand.
2. It’s anticipated that a lack of lower-priced apartments, condos and attached/row houses that offer amenities young first-time buyers and young families are looking for, will not meet increasing demand.
3. Most buyers are “marrying the house and dating the rate,” which means they are taking advantage of the still affordable prices in Edmonton that are anticipated to continue to grow because of migration and investment push. The buyers then plan to refinance as rates come down within the next 18-24 months.

The top 3 considerations for homebuyers this year:

• Interest rate hikes by the BoC have had a definite direct negative impact on both the pocketbooks and the mindset of owners and buyers.
• Edmonton also continues to see a strong demand for luxury real estate over $1 Million- both centrally located new builds, large lot mature area resale typically in need of updating renovations, and acreage.
• Buyers can put themselves in the best possible position to not only purchase a home but also, win their offers in a competitive big by ensuring their REALTOR® and mortgage professional are on the same page; obtaining a written pre-approval letter where possible; and having all documents prepped and ready for your mortgage representative.