Edmonton commercial real estate market hits $1.46B in sales mid-2022: report (2023)

FAQs

What is the forecast for commercial real estate in Canada? ›

The Canada Commercial Real Estate Market is growing at a CAGR of >8% over the next 5 years.

The sales-to-new-listings ratio (SNLR) in the Edmonton area is 58%. This is lower than in April 2022 and 2021 but higher than in April 2019 and 2020 levels.

The median condo price in Edmonton decreased by 0.4% year-over-year to $183,100 for May 2023. While in comparison, provincially, the median condo sale price is also up 8.6% from a year ago to $255,600. The median rent for a rental in Edmonton increased by 11.2% year-over-year to $1,300 for May 2023.

Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for April 2023 hit 2,028, decreasing 30.8% compared to April 2022 but increasing 11.1% from March 2023. New residential listings were down 26% year-over-year from April 2022, while also noting an increase of 6% from March 2023.

Canada's Real Estate Bubble Is Approaching The Largest In History. Canada's real estate bubble has blown past the 90s bubble, and is going for the biggest of all time. National Bank (NBF) data shows affordability in Q3 2022 eroded to the worst level since the early 1980s.

A new TD Bank report suggests the average price of a home in Canada could fall between 20 and 25 per cent from its peak seen earlier this year to the first quarter of 2023. The report released Monday comes as a decrease in prices materialized in the summer as mortgage and interest rates rose.

Article content. The spring market is off to an early start in our region as our market has shifted towards a seller's market in most property types.

Edmonton Real Estate Stats - May 30, 2023:

Edmonton has a current average price of $301 per square foot.

“Condos are inherently very difficult to sell in Edmonton, the main reason being that there is a lot of new development, therefore you're competing with brand new construction priced super competitively,” agent Clare Packer said.

New listings are also down 28% year-over-year, while inventory has decreased by 6% year-over-year. Months of supply are now rising rapidly, increasing 30% compared to this same time last year. For April 2023, detached home prices are up 1% annually to an average price of $549,095.

Are condo prices dropping in Edmonton? ›

In 2022, the greater Edmonton area has seen a decrease in sales prices for all types of homes. The average sold price for all property types was around $360,000 which was a 5% decrease from 2021. The average price of a condo was just over $200,000 and there was a 5% decrease in condo unit sales compared to last year.

After hitting record highs in 2022, the price of an average house in Edmonton is expected to drop in 2023. The value of an average detached house in Alberta's capital is expected to drop by roughly three per cent in 2023, as rising interest rates and the cost of living drive buyers to seek more affordable options.

Royal LePage forecasts the average home price to rise 1.5 per cent to reach about $433,500 by year's end.

Last Updated Oct 11, 2022, 7:33PM MDT. Edmonton will have a significant affordable housing shortage by 2026 with nearly 59 thousand households left without a low-cost place to call home, if the number of those rental homes doesn't increase, according to a staff report.

Throughout the first quarter of 2023, the supply of vacant space within the Edmonton office market continued to rise, with the overall vacancy rate increasing to 20.1% from 19.5% at the end of last year.

As a result, we expect a price decline between 2022 and 2023, but the average price will not revert to pre-pandemic levels. However, we expect this decline to bottom out sometime in 2023. We anticipate growth in prices, sales and starts for the 2023 – 24 and 2024 – 25 periods.

'The housing market is really overvalued' Economist Moshe Lander discusses plunging home sales in Canada and the growing risk that tens of thousands could default on mortgages.

Will houses ever be affordable again in Canada? Various economists anticipate housing will become affordable again by 2025. As mentioned, 2023 is likely to be a tough year for housing in Canada, but it will eventually recover. Further, all markets recover in the end so no financial crisis is forever!

Highlights from the report

But even then, prices will still be nearly 14% higher than they were in 2020. With the economy and immigration picking up steam, CMHC also thinks home prices will start climbing again in 2024, hitting an average of $694,196 in 2024 and $746,410 in 2025.

The Bank of Canada's benchmark interest rate is expected to fall back to around 3.00% by the end of 2024, according to a median of responses from market participants.

How much will the price of a house in Canada be in 2023? ›

Average price for 2023 to be just over $630,000

Should predicted periods of negative economic growth fuelled by higher interest rates and economic uncertainty materialize in 2023, CMHC's baseline forecast shows the average home price will be $643,325 this year compared with $703,875 in 2022.

Edmonton, Alberta

While Calgary may attract more attention than its sister city, Edmonton is a more consistent option for real estate investors. The reason for this is that Edmonton's property prices do not tend to rise and fall the same way they do in Calgary's oil-based economy.

With a growing population and a stable job market, there is a high demand for rental properties in Edmonton, which can translate into steady rental income for property investors.

In Edmonton, average condo fees can range from less than $400/month, all the way up to $650+/month. As you consider your home options, make sure you factor this fee into the equation. Adding a high condo fee to your monthly payment could mean that you're spending even more than you would if you had a traditional home.

The average edmonton alberta salary in Canada is $59,420 per year or $30.47 per hour. Entry-level positions start at $41,925 per year, while most experienced workers make up to $118,904 per year.

Most housing construction costs between $150 and $200 per square foot depending on the bells and whistles added. As for the cost of land, again this varies depending on the community, the lot features, the nearby amenities, and the type of home you are building.

Research shows that the average house cost in Edmonton for single-family dwellings is $463,050. Building a home will often save you money while simultaneously allowing you to choose a design you love that won't require any work once you move in.

Alberta's low tax regime is an important part of the affordability equation. Low taxes mean higher disposable income, relative to other provinces. And the UCP government's supports for small businesses have helped support the entrepreneurial spirit of Albertans, as our economy emerges from the pandemic.

While most Edmonton real estate will appreciate over time, condos will only increase a little compared to single-family houses. This is mostly due to land increasing in value. With condos, you don't own land, you own a unit, with little opportunity for expansion or improvement.

Residential vacancy rate for units in non-subsidized rental buildings containing three or more rental units. The 2021 residential vacancy rate in Edmonton was 7.30%.

What is the best place to live in Alberta? ›

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

In 2024, TD expects housing prices in Alberta will increase 3.2 per cent. “Our forecast would anticipate some near-term softness, but we do expect the market to stabilize and move higher relatively quickly,” added Sondhi. “We'd expect the market to find a bottom sooner, rather than later.”

On the other hand, when you purchase a condominium, you only own the specific unit. No land = less value. Also, it's likely that more condominium units can fit on single plot of land than single family homes, as condos are often built up instead of out. This higher supply of condos can in turn drive prices down.

Overall, even though there is an aberration in the Alberta market, the steady condo market is a good sign for those who have invested in a home or are looking to be more involved in the Alberta condo market.

Rent Prices. As of May 2023, the average rent for a 1-bedroom apartment in Edmonton, AB is $1,125. This is a 16% increase compared to the previous year.

They expect home prices to improve in Q3 & Q4 this year, over in 2023 they expect the medium home will delince 5.6% compared to 2022, to $776,600 in 2023 ($822,300 in 2022). They had predicted a median 2023 price of $758,600 forecast last October.

The most recent Homebuyer.com data indicates that, for first-time home buyers, May 2023 is a good time to buy a house. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

Vacant lots in the central core vary in size from 42 m2 to 25,531m2, with a median size of 374.4 m2. This is approximately the size of an average single-detached lot.

The current metro area population of Edmonton in 2023 is 1,544,000, a 1.65% increase from 2022.

Is it a good time to sell my house in Edmonton? ›

If you have equity in your home, and similar homes have sold for a similar price to what you paid (or more), now could be a great time to list your home. In Alberta, there is currently a low supply of homes on the market, which creates less competition and more urgency from buyers.

Residents of Edmonton enjoy the highest average household income in Canada with an affordable cost of living. Taxes are lower, and there is no provincial sales tax (PST). On average, Edmontonians have more disposable income than most other Canadians. Edmonton also has the lowest gasoline and diesel prices in Canada.

The median price of a single-family home in Edmonton decreased by 7.6% year-over-year to $417,800 for May 2023. While in comparison, provincially, the median single home sale price was down 0.3% from a year ago to $512,500. Edmonton's townhouse/rowhouse price decreased by 6.2% year-over-year to $230,000 for May 2023.

While other provinces are seeing a marked decline or correction in their housing market prices, Alberta's housing market forecast for 2023 is expected to surpass pre-pandemic housing sales. By the third quarter of 2022, over 32,800 people relocated to Alberta from other provinces, an increase of over 55% from 2021.

The MSA with the highest vacancy rate is Little Rock, Arkansas, at 16.3%. The Little Rock market's vacancies have fluctuated significantly over the past several years, from 11.0% in the fourth quarter of 2021 to 6.0% in the first quarter of 2022 and 13.3% in the third quarter of 2022.

A vacancy rate of 3% is considered healthy because it represents a market balanced between tenants and owners. Areas with vacancy rates of less than 2% mean high rental demand, while vacancy rates above 4% mean that there is more housing supply than demand.

The number of vacant job-specific positions (or positions within the whole organization), divided by the total number of job-specific positions (or within the whole organization), multiplied by 100 equals your vacancy rate.

Starting in 2023 or 2024, we expect prices and sales to rise again and forecast inflation to hit its 2% target by the end of 2025. Mortgage rates are expected to become more affordable after 2023. These changes, along with renewed growth in income and employment will support housing demand and supply.

In Canada's major urban centres, sales and new listings are steadily increasing on a month-to-month basis, despite being down compared to this time last year. "There remains a chronic shortage of housing supply in Canada, be it for rent or purchase.

Will 2023 be a good time to buy a house? ›

The most recent Homebuyer.com data indicates that, for first-time home buyers, May 2023 is a good time to buy a house. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

The market consensus on the mortgage rate forecast in Canada (as of May 4, 2023) is for the Central Bank to hold its rate at 4.50%, and as long as inflation continues on its downward trend, for rate hikes to be finished.

These organizations predict that mortgage rates will decline through the first quarter of 2024. Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point.

Alberta Housing Market as of April 2023

Alberta's housing market hit a rocky patch in April 2023 as Alberta home prices tumbled 6.5% in one month, dropping to $462,086.

Future Plans: If you have plans to buy a new home in the near future, it may be better to wait until 2024 to sell your current home. This way, you can take advantage of any market improvements and get a better price for your home, which could help with the down payment and closing costs of your new home.

Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.

Supply and Demand

In Canada, there are more people trying to buy houses than the amount of housing available to purchase. This low housing supply can cause a bidding war between buyers and allows the seller to sell the home for more than the asking price. This process creates higher prices in the real estate market.

A standard house costs almost twice as much in Canada as it does in the U.S. Back to video. The average home price in Canada reached a record $816,720 in February—or $638,144 USD—more than nine times the average household income, according to the Canadian Real Estate Association (via Fortune).

Low interest rates have made it easier for Canadians to get mortgages, which has increased the demand for housing. With low interest rates, people can afford to borrow more money and pay more for housing. This increased demand has driven up prices, particularly in cities with high demand.

While 2022 was an interest rate rollercoaster ride, 2023 should be a float down the river; some turbulence, but overall a straight line. The Canadian cities with the most significant price drops are seen in British Columbia, Ontario, and New Brunswick.

What is the fastest growing real estate market in Canada? ›

Real estate investing in Canada can seem quite daunting for the first-time investor, especially in 2023 when the market seems as volatile as it's ever been. But experts suggest that despite recent market fluctuations, 2023 is the perfect time to invest in real estate in Canada.