Edmonton homebuyers continue to surge against national trend, province hurries to keep up with demand

With an election imminent and the threat of tariffs imposed by U.S. President Donald Trump off and on, unlike other markets across Canada Edmonton homebuyers haven’t been deterred from the market.

“I think when people are shopping for a home, the first thing that they’re thinking about is, what do I need for my family? And usually when you’re worried about that, you’re not talking about Mark Carney or Pierre Poilievre or Donald Trump. You’re talking about your two kids and what school they want to go to, and how far is it to get to work. Is grandma (and) grandpa close by — all those types of things,” said Royal LePage NorAlta broker-owner Tom Shearer.

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Despite domestic and international variability, Edmonton homebuyers remain active in the housing market, according to a monthly report from the Realtors Association of Edmonton (RAE). While the local market remains resilient, the same can’t be said for the national market. A Canadian Real Estate Association (CREA) report shows buyers are staying out of the market, while tariff and economic uncertainty forced the association to downgrade its resale housing market forecast released in January.

Sales activity across the country on MLS Systems dipped just shy of five per cent month-over-month in March, which CREA said marks the fourth consecutive month of decline and a 20 per cent decrease from its recorded high in November.

“Since CREA briefly paused forecasting at the beginning of the COVID-19 pandemic, this latest CREA forecast constitutes the largest revision in between quarterly forecasts on record going back to the 2008-2009 financial crisis,” said CREA in its report.

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Housing activity and prices continue to come down in cities across Canada but, once again, Edmonton is still not one of them.

Last month saw nearly 2,500 residential unit sales in the Greater Edmonton Area, which meant a 36.9 per cent increase from February, according to RAE’s monthly report. The increased activity was accompanied by a slight bump in total residential average price, which was 2.5 per cent higher than February. It wasn’t just buyers eyeing the market in Edmonton either. New residential listings totaled 3,780, which was up over 44 per cent from February.

For its part, the Alberta government announced on Tuesday that it is already outpacing last year’s record-breaking year for housing starts. At nearly 4,100 since January, Edmonton is up 17 per cent on housing starts compared to last year. Starts are up 18 per cent for the entire province.

Shearer hypothesized that Edmonton might be going against the national trend because it “has the nice balance of size and affordability and opportunity.”

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“I think because of those three things, people are migrating to (Edmonton), and they really overlook the cold weather and try and make something happen and so I think that upper optimism that is around the city right now is attracting people to our city.”

While tariff and political uncertainty could cause headwinds in the market, Shearer said the choice to buy a home is made over a longer period of time, and is therefore influenced by different factors.

“I think your overall political climate factor is low on the decision-making about where I’m going to live,” he said.

“That being said, when you’re looking over your shoulder about your job and you’re worried about your economic stability, or your banker is like, ‘Oh, my risk tolerance is a little lower for people in your field right now’. Then it gets it gets harder for you to obtain financing,” said Shearer.

While activity in the market continues, Shearer did note that the activity in housing type has begun to shift as the single-family detached home becomes less obtainable than it was.

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“I think that’s pushing more people into the more affordable categories like row houses and townhouses and even apartment condos,” he said.

With signs of market variability cropping up across Canada in an unstable economic environment, Shearer assured locals that Edmonton remains a good investment.

“In a market like what we’re in right now, where you’re not sure which way the wind is going to blow, real estate is still, especially in Edmonton, is still a great investment because we haven’t seen significant declines or drops in our values,” said Shearer.

“And so it remains a stable investment and a great place to start building equity in yourself.”

zdelaney@postmedia.com

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