Edmonton housing market finishes the year strong, but 2021 outlook gloomy
Edmonton's housing market finished strong in 2020 but that momentum is not expected to carry into 2021 unless Alberta's COVID-19 restrictions loosen soon, says the chair of the city's realtors' association.
The Realtors Association of Edmonton (RAE) on Wednesday provided an update on last year's housing market as well as a forecast for 2021. The average price of a single-family home in 2020 rose about one per cent from 2019 to more than $429,430 while condo prices dropped roughly two per cent to approximately $220,500. Duplexes also dropped less than a percentage to about $332,000.
For 2021, the RAE is forecasting prices for single-family homes and duplexes will drop by 0.8 per cent to $426,000 and $330,000, respectively. Condo prices are anticipated to drop by 1.2 per cent to $220,000.
RAE chair Tom Shearer said 2020 finished surprisingly strong following a year of uncertainty. He said forecasting 2021 is particularly hard because of a number of factors from job losses to current COVID -19 restrictions.
“People are uncertain where the market is going to take us,” Shearer said. “We have this low inventory story that's happening at the end of 2020 and then we have this unemployment story that we're looking into 2021. It's going to be tough going for the first few months. As restrictions ease and as people get back to work, we're going to see a spring fever and happy summer like no other. As restrictions ease, I think more and more people will feel more comfortable getting out there. (People) have been holding back.”
Back in December, the Alberta government brought in stricter measures to curb the spread of the virus including banning dinein services and ordering retailers to open at 15 per cent of their total capacity. Premier Jason Kenney announced last week the restrictions on businesses would remain until at least Jan. 21, although inclass learning resumed this week.
Shearer said Edmontonians have managed to push through hardships before, such as during the 2008 financial crisis.
“I think a lot of people have been very careful with their finances,” he said. “Canadians have been very stable in their delinquency in the mortgage payment and (when) you look all the way to 2008 (during) the financial crisis we came through that not so bad. I like to think we'll manage.”