Well… cheers to 2021 and the endless possibilities! Last January, I attended the 2020 RAE Housing and Economic Forecast at the Edmonton Event Center. With the COVID-19, it has also undergone a digital transformation. Nonetheless, the event was great as there was a chance to review 2020 and the year to come. This was a great chance to understanding the impacts of COVID-19 to not only the real estate industry but to every other industry sector – such as retail, restaurants, etc. Lynette Tremblay gives us great information on Edmonton’s position as a global leader in technology.
- 2020 Year in Review: Jennifer Lucas, Past Chair – REALTORS® Association of Edmonton
- “After the Winter” – CIBC Economic Outlook: Benjamin Tal, Managing Director – Deputy Chief Economist – CIBC World Markets Inc.
- 2021 Regional Economic & Housing Outlook – Edmonton Global: Lynette Tremblay, Vice President Strategy and Innovation – Edmonton Global
- 2021 Market Forecast: Tom Shearer, 2021 Board Chair – REALTORS® Association of Edmonton
If you are interested in getting to know more… continue reading or feel free to reach out! @jarettjohnson
Summary of 2020
- Average price of an all-residential in 2020: $365,638
- Total listings for all-residential in 2020: 17,094
- Total unit sales for all-residential in 2020: 17,036
Summary of 2021 Forecast
- Average price forecasted for an all-residential in 2021: $345,564
- Total listings forecasted for 2021: 17,000 (-0.5% decrease)
- Decrease 4.7% in unit sales as inventory is at its lowest.
Real Estate in 2020
- In 2020, pent up demand pushed sales numbers up, with buyers looking for properties with more recreational space, larger yards, and, when possible, home office space.
- Apartment-style condos are oversupplied, with detached homes and townhomes being the most in-demand.
- The best market in 2020 was rowhomes and townhouses, where home purchases grew by 17%! Purchases in the single-family house market grew by a steady 5%, but purchases in the condominium apartment market shrank by 8%.
- Edmonton pre-sale and new construction prices accelerated toward end of 2020.
- Edmonton apartment values have been trending downward over hte long-run. In the summer of 2020, they had a boost. The median value rose much more than the benchmark value and this implies that condo buyers have chosen to buy more space (livable square feet).
Real Estate in 2021
- Despite lower interest rates, due to COVID-19’s impacts, short-term core demand for homes will likely be much lower in 2021.
- Move up buyers are currently driving demand in the Edmonton real estate market, which is expected to continue in 2021. The most popular property type among move-up buyers in Edmonton is single-detached houses and townhouses.
- The average price spent on a property by a first-time homebuyer is approximately $300,000. It is expected to be more difficult to enter the market as a first-time homebuyer in 2021, as there is expected to be less inventory, making it tough for buyers to find the right property.
COVID-19 in 2021
Vaccines
- As of January, vaccination has started and will be expanded to the entire population throughout 2021 as vaccine supply increases.
- Health Canada continues to monitor the safety and effectiveness of COVID-19 vaccines.
- It is currently estimated that the COVID-19 vaccine will be available to the general public in Fall 2021. (Note: Alberta does not currently have a waitlist).
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Click here to check out the presentations from the RAE 2021 Forecast!