Despite higher borrowing costs, Edmonton’s resale real estate market is poised for improvement in 2023. A revised forecast predicts rising prices, defying earlier expectations. Discover the factors contributing to this positive outlook.

Surprising Resilience in the Face of Interest Rate Hikes

Contrary to predictions, the sharp rise in interest rates did not hinder employment or slow consumer spending in Edmonton’s real estate market. Foreclosure rates also remained stable at historic lows. This unexpected resilience has contributed to an upward revision in price forecasts.

Revising Price Expectations

Previously, Edmonton’s average home price was forecasted to rise by 1% in 2023. However, the revised forecast now predicts a 1.5% increase, reaching approximately $433,500 by year’s end. This positive revision aligns with the broader trend of improved price forecasts across Canada.

Canada’s Real Estate Market

Nationwide, the latest forecast predicts a more favorable performance than earlier projections. While January’s forecast anticipated a 1% decrease in the average price, the revised forecast now predicts a 4.5% increase, surpassing $791,000. Larger markets like the Greater Toronto Area are expected to drive this growth.

A Rebound from the Bottom

The current growth in Edmonton‘s real estate market is a rebound from the bottom reached during the pandemic-induced market contraction. Many Canadian markets experienced a year-long period of decreased prices and sales. Now, the market is recovering from this low point.

Steady Market Conditions in Edmonton

Edmonton’s real estate market has remained relatively stable, in contrast to the soaring prices observed in cities like Toronto and Vancouver during the pandemic. This consistency is due to the lack of dramatic market conditions in Edmonton and Alberta as a whole.

Hotspots and Demand

Certain segments of the Edmonton market, particularly those priced below $450,000, are experiencing heightened activity. Higher borrowing costs have limited buyers’ options, leading to increased demand in this price range. However, the overall market still faces challenges related to limited supply and strong demand from first-time buyers.

Edmonton’s resale real estate market is expected to thrive in 2023, surpassing earlier price projections. Despite higher borrowing costs, the market shows resilience and a return to more normalized conditions. While challenges persist, opportunities abound for both buyers and sellers in Edmonton’s steady and evolving market.