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Edmonton Real Estate Market

IanO said:
Just chatting with a major developer in Calgary - typically the market has 5 months of inventory... they are under a month right now. He sold 79 condos in January in -30C, a record month by more than 30% and has raised his prices by 15% because of that in a month. That's 2.5 units a day in a single project... unreal.

Curious to see the January stats for Edmonton.
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What about your real estate buddies in YEG Ian…..what are they saying?
 
MacLac said:
so now, hopefully there will be a big rush to build.
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This is the one positive thing that comes from this. Toronto and Vancouver which has been under this crisis the longest have basically eliminated every single surface parking lot in their downtowns in the last 5-10 years. It will accelerate the repairing of the city centre (hopefully).
 
Yeah, I'm seeing some condos right now in the core and wondering if I should jump into it soon to avoid being priced out. As someone who's in their mid 20's, I'm not completely ready yet to buy but at this point, the red flags are starting to pop up.

I'm glad the zoning bylaw got passed and there's some movement on that front, but I hope to god there's more construction/movement in general. The Conference Board expects 2023 numbers for 2024. That's another 60,000 people possibly moving here.
 
There are quite a few warehouses in the core that could be converted to housing. I was walking by the McKenney building last night, and thought it would look good as a apartment conversion with retail on ground level.

The Norquest area seems to have a large supply of these buildings sitting empty.
 
MacLac said:
What about your real estate buddies in YEG Ian…..what are they saying?
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Prices still quite depressed and below the go/no go thresholds, but interest slowly picking up in the core. Burbs are doing well with single fam, but multi-fam still struggling.
 
Barnaby said:
There are quite a few warehouses in the core that could be converted to housing. I was walking by the McKenney building last night, and thought it would look good as a apartment conversion with retail on ground level.

The Norquest area seems to have a large supply of these buildings sitting empty.
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103 ave with all those warehouses has a lot of potential for housing and reminds me quite a bit of King Street West in Toronto where I used to spend a lot of time. Many warehouse buildings on King West there have been turned into condos with restaurants, cocktail bars, etc. and is a very enjoyable vibrant area.

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103 has similar bones and the potential to be great in terms of old warehouse buildings but is completely dead

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I hadn't really thought of the King Street comparison before, the buildings here are smaller but you do have a good point. There are a number of condo buildings already scattered throughout the area and the possibility for more.

I think a lot of the infill will be larger buildings, but I hope they are built to match the character of what is there and I hope we can also keep as many of the old buildings as possible to keep the character. This area does have a lot of good potential.
 
I'm starting to get nervous. As a late 20 something, I'm incredibly fortunate and lucky that I could buy if I wanted too. However, I would much rather not as my partner is finishing up schooling and is a couple years away from doing so (we moved back home to save $ in the meantime). We also wanted to take this opportunity at this stage in our lives to maybe do some big international trips over the next couple years as we don't think there will be a better time to do so then now.

All that said, I keep a very close eye on the market. If it heats up to Calgary levels or close to, I will go and buy a duplex/townhome or small single family if it means I get into the market before the window shuts. Because to be quite honest, if I got priced out of Edmonton, I would likely end up leaving TBH - affordability is one of the primary reasons many people live here and its something I value and wish to have protected so that middle class Canadians can continue to live a comfortable life and achieve reasonable goals and dreams.

Hold your breath everyone.
 
Munanyo said:
I'm starting to get nervous. As a late 20 something, I'm incredibly fortunate and lucky that I could buy if I wanted too. However, I would much rather not as my partner is finishing up schooling and is a couple years away from doing so (we moved back home to save $ in the meantime). We also wanted to take this opportunity at this stage in our lives to maybe do some big international trips over the next couple years as we don't think there will be a better time to do so then now.

All that said, I keep a very close eye on the market. If it heats up to Calgary levels or close to, I will go and buy a duplex/townhome or small single family if it means I get into the market before the window shuts. Because to be quite honest, if I got priced out of Edmonton, I would likely end up leaving TBH - affordability is one of the primary reasons many people live here and its something I value and wish to have protected so that middle class Canadians can continue to live a comfortable life and achieve reasonable goals and dreams.

Hold your breath everyone.
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Yup, very close to my thoughts and along with a lot of other friend's my age. Everyone is scrambling to get their ducks in a row to purchase, even before they're really ready. Hate the fact that it's FOMO driving decisions to purchase.
 
At least here you still may have some time to get your ducks in a row, as opposed to some other places where that chance ended a long time ago.
 
Edmonton's market is incredibly affordable. With low interest rates the past 5-10 years people could afford to skip the step of owning a condo before a home. I still think condos are well priced right now and a great starter property. They are better to 'hold' than a quick flip however, prices can been falling for almost 10 years. But if you want to get in the market it's a great option.

I'm hearing realtors expecting 5-7% price increase in condos this year. Demand may or may not go up. This means there's still time to get something affordable.
 
Greenspace said:
Edmonton's market is incredibly affordable. With low interest rates the past 5-10 years people could afford to skip the step of owning a condo before a home. I still think condos are well priced right now and a great starter property. They are better to 'hold' than a quick flip however, prices can been falling for almost 10 years. But if you want to get in the market it's a great option.

I'm hearing realtors expecting 5-7% price increase in condos this year. Demand may or may not go up. This means there's still time to get something affordable.
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I think there's still time too. But I wonder if 5-7% is accurate or maybe too low considering how cheap they already are. There's a lot of catch up that could happen pretty quickly depending on migration, affordability in other cities and job growth.
 
I would not fret over long-term affordability of any housing class in Edmonton.

Our market is just far too responsive to demand. We can't sustain a large delta between cost to build and purchase price because someone will just build new units until that delta shrinks to a typical profit margin.

We have robust competition between:
* Developers/builders on unit price.
* Landowners on land costs for infill projects (thanks to ZBR, City Plan, district planning)
* Municipalities on greenfield land cost

There's no room for any party to drive up their profits by constraining supply. Someone else will eat their lunch.
 
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