The Canadian Mortgage and Housing Corporation (CMHC) is Canada's national housing authority. Although most people know CMHC as a national insurer that helps Canadians secure high-ratio mortgage financing, they do a lot more than that. CMHC produces quarterly housing market outlook reports for every major city in Canada. Here are some of my thoughts on the Fall 2013 outlook for Edmonton Alberta.
The Edmonton capital region, which includes places like Sherwood Park, St. Albert, Leduc, Devon and Beaumont, among others, is experiencing good economic growth and migration from other Canadian provinces. This economic growth is due in part to oil industry development as well as massive infrastructure projects in the region. Edmonton has one of the lowest unemployment rates in the country at 4.8% so there are lots of people moving here for a good, well-paying, full-time job.
Because of the strong economic growth, CMHC is forecasting that construction on single-family detached homes will increase moderately in 2014.
According to the Calgary Herald, Edmonton has overtaken Calgary in investment ranking! Click on the image below to read the full story.
2013 has been a big year for multi-family construction which is needed to meet rental market demand. Rental vacancy rates in the Edmonton area are very low, so new supply coming on stream will help to supply that demand, though multi-family construction is expected to slow somewhat in 2014 as new inventory becomes available.
There may still be an opportunity to buy or build apartment buildings as there is very attractive financing available for apartment buildings, both CMHC insured and uninsured. A savvy investor could make a case for getting into the apartment business, especially if they've outgrown single-family rentals as an income stream. They may also become more popular as investors are finding it more difficult to own multiple single-family dwellings due to underwriting restricitons on the number of doors a residential lender will finance.
Edmonton Housing Market Outlook
Here is a copy of the housing market outlook for Edmonton Alberta Fall 2013. You can find the forecast summary on Page 9. Lots of great information there.
Canadian Housing Market Outlook
Although housing trends and forecasts are best in very local markets, looking at the national forecast can give some great insight as well. Here is the Canadian housing market outlook, excellent breakdown into specific provincial outlooks.
if you are looking to purchase property in Edmonton and would like more information, please don't hesitate to contact me anytime, I would love to point you in the right direction!