According to their most recent Housing Market Outlook for the city of Edmonton, The Canada Mortgage and Housing Corporation (CMHC) predicts growth in the new and resale housing markets to moderate in 2013.
New home starts in the Edmonton census metropolitan area will finish this year at 12,000 units, up 29 per cent, the agency said. Home construction numbers are expected to slip in 2013, however, to 10,800 units.
"While demographic growth and move-up buying will support new home sales, higher monthly carrying costs and a risk of rising inventories will slow the pace of construction," said Lai Sing Louie, CMHC's Regional Economist for the Prairie and Territories Region.
Multiple Listing Service sales in Edmonton increased by six percent in 2012, finishing at 18,000 units. While sales in 2013 are also anticipated to increase, the pace is expected to be slower and total sales should come in at 18,500 units for the year.
The report also notes that the resale market has recently moved from favouring buyers toward balanced market conditions as demand increased relative to supply. CMHC predicts that in 2013, balanced market condition will continue and the average price of a home in Edmonton will continue to grow. It’s forecasted that and average, single family home in the capital city will be sold for $341,000 next year, representing an increase of two per cent from 2012.
Interested in learning more? Check out the semi-annual Housing Market Outlook for Edmonton, Calgary, or Regina provided for free by The Canada Housing and Mortgage Corporation. Otherwise, talk to one of the mortgage or insurance team members in Edmonton or Calgary!