Each year the Realtors® Association of Edmonton gathers together a group of economic experts to share their thoughts on where we are headed for the next 12 months in terms of: the economy, world events and at a more local level, how this will effect the housing market for our clients.
This year’s speakers included: Steve Sedgwick the Chair of the Realtors® Association of Edmonton, Todd Hirsch - Chief Economist, ATB Financial, John Rose – Chief Economist, City of Edmonton and Christina Butchart – Senior Market Analyst, Canada Mortgage and Housing Corporation (CMHC).
Here is the list of their highlights and predictions for our market:
1. Total sales for the Edmonton market will drop by 2%. Down from 17,298 homes and condos sold in 2015 to around 16,900 for 2016. Note, this is still a very large number and realistic home sellers in metro Edmonton WILL see success (source: Realtors® Association of Edmonton).
2. Prices for Edmonton area homes and condos will drop in value by between 2.4% (source: Todd Hirsch ATB Financial) and 2.7% when compared to 2015, (source: Realtors® Association of Edmonton).
3. According to the Realtors® Association of Edmonton, only 54% of home and condos placed on the MLS® System sold in 2015. This rate is expected to drop dramatically in 2016, as we finished the year with near record inventory levels, up 66% from the year before. This means it will be crucial to find the right marketing partner. It will be important to ‘position’ your home correctly for sale. You should also try to save money on selling fees if you can.
4. In the near term, perhaps the next 5 years, home values are expected to stay flat, according to Christian Butchart of CMHC, and oil prices will not exceed $50 per barrel for many years, (source: Todd Hirsch, ATB Financial).
5. On the upside, the Edmonton economy is more diversified than many realize. John Rose from the City of Edmonton pointed out that Government, Health and Education are all big employers and that the Edmonton economy is the best place to be in the downturn. John Rose also showed us that there were 24,000 new jobs created in Edmonton in 2015, particularly in construction and public administration. Unfortunately, the construction jobs will be short lived.
Despite some of the mixed messaging here, almost 17,000 home sellers will see success in 2016. Life happens in real estate. People will continue to: marry, have children, move, divorce and age. Provided you seek expert advice and position your home for success, you will sell for full market value and quickly. A typical home seller in the metro Edmonton market will witness success in only 8 to 12 weeks.
Want more information about our discount and flat fee home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit www.LowerRealtyFees.com
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