Edmonton is one of the popular real estate markets in Canada but it has stayed more balanced in recent times. This has opened up more opportunities for investors with regard to snapping up properties at the same price points minus huge increases like some other regions in the nation. As per reports, approximately a lion’s share of properties in Edmonton is listed at prices lower than $100,000 and also above $2 million.
This has thrown up an interesting case of two extremes where both segments have almost exact numbers of properties that have been listed. In a market that is still recovering from its erstwhile sluggishness, the challenges may be quite similar for home sellers, whether the housing unit comes with ample space for accommodating musical instruments like a piano or has a winding staircase (in case of luxury properties) or whether it is a one-bedroom condo unit in a building that has been rapidly ageing (in case of entry-level units). Industry experts opine that while both segments are leagues apart from one another, some of the pressures exerted on them are similar but applicable in differing ways.
Yet, if things turn challenging for sellers, it becomes all the more tempting for buyers. There is attractive value for money at the higher end of the market as per experts in Edmonton’s real estate market. There is almost everything that a buyer may desire and that too at a really compelling price point. Entry-level buyers will also find really attractive value for money units.
Definitive market trends in Edmonton
All prevailing market trends indicate a more balanced real estate market in Edmonton which will keep attracting buyers to both the entry-level and luxury categories as opined by experts. Prices in Edmonton can go down as low as $50,000 as observed in case of two listed units which are 1-bedroom condos. Of course, this category does not include mobile houses or things like that. These are units which are priced as cheaply since they are considerably older, smaller and not in proximity to the downtown core zones of the city or retail and business hotspots. While these attractive prices may bring back memories of the 1990s for long-time industry watchers, this poses a major risk for home buyers.
The maintenance levels for the property are a major risk along with replacements and necessary repairs down the line. If the reserve fund of a building is not sufficient, individual unit owners may have to fork out charges for new heating systems, windows and roofs. Condominium associations may impose special assessment for owners to cover these costs. The average condo unit price in Edmonton stood at $227,802 as seen in October last year. However, this is 3% higher than the same period in 2018. Yet, the average price in October 2018 was considerably lower than the same period in 2015 (8%).
The reduction in condo prices in Edmonton has been due to oversupply and a huge number of new listings in the market along with several conversions that transformed rental units into new condos. There are many investors who purchased multiple properties during the boom and are now looking to cash in on the same. Edmonton is growing steadily and the real estate market continues to be the same, i.e. steady and balanced. Yet, there will always be a steady trickle of buyers since there are ample affordable housing options, good schools and all necessary facilities in this city.
What’s happening in the luxury category?
There are several options in the luxury real estate category in Edmonton. There are premier mansions on lots with impeccable manicuring, gardens, views of the river valley and tons of marble and granite. However, the luxury real estate market here is still a long way away from becoming a multi-million dollar proposition such as Vancouver or Toronto. There is still space to grow in Edmonton and what draws many buyers here is the fact that whenever one earns possibly 1-4 million dollars, there opens up innumerable choices in terms of buying a dream home or possibly building one.
The highest price seen in the segment last year was $8.5 million for a grand mansion with 20,000 sq. ft. of total living space, a wine room and indoor pool. There are many rich households who have ample money to fulfill their luxury property dreams in Edmonton but the unit has to cater to their individual needs and wants. Buyers are also negotiating more aggressively in this segment at the moment. Overall, there is decent growth in Edmonton but the market still remains a little slower as compared to some of Canada’s fastest growing cities by way of sales and property prices.