If you have been following the market you have no doubt noted that values are UP. In fact, based on a rolling average, resale prices are about 9% up from January 2021 to the end of May 2021, when compared to the same period last year.

Should you wait before buying your next home? That depends.

If you already own a home and you have interest in moving to a larger home, or a smaller home, I suggest that you focus on your needs first and not worry too much if prices are going up or down.

However, if you are a first-time home buyer this question could be very important. Look at the graph above. Its shows benchmark prices across the Edmonton single family market.

Can you see the 6-year cycle?

From June 2009, which is when sales values bottomed out, we saw steady growth in values until June 2015. That’s a 6-year cycle after which time values started to drop again.

Since June 2015 values have gone up and down rising steeply in recent years. If we expect to see the market follow another 6-year cycle, home values could flatten out during the summer of 2021.

Or they may not.

Covid 19 has produced unique circumstances. We have fewer single-family homes for sale, we have strong pent-up demand from buyers, we have low interest rates and construction costs have gone through the roof, (please excuse the pun). Building costs higher due to high material costs which in turn is based on manufacturing shortages, due to Covid 19 shutting many factories down.

If I was a betting man, I would expect to see values stay high for the balance of this year and perhaps continuing right into 2022. After which time, all bets are off.

However, I don’t think that we will see a slump like the one we witnessed back in 2009. That was due to the great recession and oil prices plummeting from $150 plus per barrel to about $50 a barrel. The world has long since adjusted to that reality.

To shop for ALL homes in the metro Edmonton area please go to our website www.AmbergateHomes.ca.

We have REALTOR® / Advisors standing by and ready to help you. Learn more about our team by clicking here: Ambergate Realty Advisors Team.

About the author:

You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®.

Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home buyers website www.AmbergateHomes.ca

Posted by Stuart Neal on
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