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The aggregate price of a home in Edmonton increased by five per cent in the last quarter of 2021 to $428,400, as real estate demand continues to be sky high in the city.
Tom Shearer, an Edmonton-based broker and owner at Royal LePage Noralta Real Estate, said 2021 was a busy year for the local real estate market and momentum has carried over into the new year.
“There was just a phenomenal amount of activity, probably more activity than we’ve ever seen here in this city,” said Shearer.
“That, I think, has a little bit to do with the low interest rates, a little bit to do with people moving out of value, so going a little further out to a bigger house because they don’t need to be close to work anymore because they’re working from home, and I think a bit to do with just wanting to have lots of room around them.”
Edmonton saw an 11.6 per cent increase, its largest jump, in the price of a single-family detached home in Q4 to $469,900, according to Royal LePage. Shearer said the increase in this specific type of home is due to the affordable housing in the city.
“When you can afford to buy a single-family home with a double-car garage, or with your own piece of grass or that larger house, then you’re going to do it,” said Shearer, who added a similar home in Toronto could go for $900,000.
Shearer said two demographics have fuelled Edmonton’s real estate market this year — boomers and millennials. He said boomers have been moving around and downsizing, while millennials are starting to get into their active buying and selling cycle.
He said the COVID-19 pandemic has also impacted the market, with more people spending time inside their homes.
Those looking for to buy their next home should look into condominiums, said Shearer. The median price of an Edmonton condo saw an increase of two per cent this quarter, coming in at a price of $193,600.
Shearer said condominiums continue to be affordable and there are a lot of good deals in the marketplace right now — even in the downtown area.
“Eventually this pandemic is going to be over, eventually it’s going to be hard to commute to the downtown core and eventually people are going to want to be close to where all the action is, and I think the light at the end of this tunnel is a vibrant downtown in this city and I think the earlier you get in the better,” said Shearer.
Shearer said the Edmonton real estate market has not escalated out of control like some other areas and it is currently a stable market to invest in. He said it’s rare an extremely busy year is followed by another one, but he is seeing a similar amount of activity in the first few weeks of 2022, compared to last January.
There are still some big price tags on the Edmonton market including a $7.5-million home on Ellerslie Road SW , a $6.225-million home in Windermere and a $5.299-million house on Keswick Boulevard SW .
