Move Faster Real Estate Blog - How's the market?Recently posted or modified blog posts by tag - Edmonton homes for salehttps://www.movefaster.ca/blog/Copyright MoveFaster.ca2024-03-22T21:04:23-07:00tag:movefaster.ca,2012-09-20:21557Is the Edmonton Real Estate Market Poised for Growth in 2024?<img src="https://assets.site-static.com/userfiles/2621/image/blog_heros/edmonton_growth.png" width="1600" height="500" alt="edmonton growth" />
Understanding the Dynamics of Edmonton's Real Estate Market
Edmonton, the vibrant capital of Alberta, Canada, has always been a hub of activity, drawing attention from investors, homeowners, and real estate enthusiasts alike. As we progress into 2024, the question on everyone’s mind is: "Is the Edmonton real estate market going to go up?" To address this query, we must delve into various factors influencing the market, including economic trends, housing demands, and demographic shifts.
Economic Growth and Its Impact on Real Estate
Edmonton's economy has shown resilience and adaptability in recent years, bouncing back from global economic challenges. This economic stability plays a crucial role in bolstering the real estate market. A thriving economy leads to job creation, increased consumer confidence, and, consequently, a rise in demand for housing. As businesses expand and new ones emerge, we anticipate a surge in the local workforce, which in turn boosts the housing market.
Housing Demand and Supply Trends
The dynamics of supply and demand are crucial in predicting the direction of any real estate market. Edmonton, known for its diverse housing options ranging from downtown condos to suburban homes, has witnessed a fluctuating balance between demand and supply. In 2024, we expect this balance to tip in favor of sellers, as demand for housing in Edmonton continues to rise, driven by factors such as population growth and urbanization.
Population Growth and Urbanization
Edmonton's population has been on a steady incline, a trend that's expected to continue in 2024. This population growth is fueled by both natural increase and migration, as the city attracts people with its robust job market and high quality of life. Urbanization, particularly in downtown and surrounding areas, has led to an increased demand for housing, particularly apartments and townhomes, which are popular choices for urban dwellers.
Interest Rates and Affordability
Interest rates are a critical factor in determining the affordability of real estate. In 2024, if interest rates remain stable or experience only a slight increase, this could continue to encourage homebuying, especially among first-time buyers. Affordable mortgage rates can make home ownership more attainable, thereby stimulating the real estate market.
Government Policies and Incentives
Government policies and incentives can significantly impact the real estate market. In Edmonton, policies that support homebuyers, such as tax incentives or grants for first-time buyers, can stimulate the market. Additionally, investment in infrastructure and public services makes living in Edmonton more attractive, indirectly boosting the real estate market.
Investment Opportunities in Edmonton's Real Estate
For investors, Edmonton presents a multitude of opportunities. The city's growing economy and population make it an ideal location for both residential and commercial real estate investments. Rental properties, in particular, are likely to see increased demand, making them an attractive option for investors looking to capitalize on the city's growth.
Emerging Neighborhoods and Hotspots
In Edmonton, certain neighborhoods are emerging as real estate hotspots. These areas, characterized by their development potential, community amenities, and accessibility, are attracting a significant amount of interest from buyers and investors alike. Keeping an eye on these emerging neighborhoods can provide valuable insights into where the market is headed.
The Future of Edmonton's Real Estate Market
As we look towards the rest of 2024, the Edmonton real estate market shows promising signs of growth. With a stable economy, increasing population, and supportive government policies, the market is poised for an upward trajectory. For those considering investing in or moving to Edmonton, now may be an opportune time to explore the real estate market.
Conclusion
The Edmonton real estate market in 2024 presents a landscape of opportunity and potential growth. By understanding the interplay of economic factors, demographic trends, and market dynamics, one can appreciate the prospects that Edmonton’s real estate market holds. Whether you are a homeowner, investor, or simply a market enthusiast, keeping a close eye on Edmonton's real estate trends will be key in navigating the market this year.2024-01-09T01:08:30-07:002024-03-22T21:04:23-07:00Matt Fergusontag:movefaster.ca,2012-09-20:12001Edmonton's real estate market is attractive to investorsEdmonton’s real estate market has been heating up since the end of the lockdown last spring, and investors are noticing, eyeing the market for its value relative to larger Canadian cities.
The capital city represents a significant value opportunity where buyers can get more for their dollar than in other markets. Edmonton has experienced a multi-year decline in real estate prices due to the downturn in the oil and gas economy but the prices are very attractive right now.
Edmonton real estate produces a cash flow so you don’t need to rely as much on capital appreciation to make it a profitable investment. Investors can expect to generate positive cash of about $200 to $800 a month after costs in monthly rent based on the average price of a home in the city and investors can build equity with each mortgage payment in a marketplace where home values and rents are on the rise.
The Edmonton market has way more room to grow.2021-09-14T08:47:00-07:002023-11-17T22:27:39-07:00Matt Fergusontag:movefaster.ca,2012-09-20:11963Will condo insurance costs continue to soar across Canada? Insurance premiums have been a plague for condo owners across Canada, particularly in B.C., where costs were up 40% year over year in early 2020, and the issue has become a government issue. Insurance premiums have been rising in Alberta and are becoming a significant source of concern in Ontario.
Despite significant year-over-year premium spikes we see evidence that condo dwellers may be getting some relief.
Insurance costs in Alberta, B.C., and Ontario fell slightly in the first three months of 2021 compared to the same period last year, reversing a pattern of fast rises that began in the fourth quarter of 2019.
Why did the cost of condo insurance continue to climb?
The origins of the condo insurance issue may be from a variety of issues.
Insurers' costs are rising as a result of more frequent and destructive fires, floods, hailstorms, and other extreme weather events. Insurers have been paying out almost 2 billion dollars on average annually for severe weather expenditures over the last decade, which is more than four times the average annual payout of $425 million between 1983 and 2008.
It didn't help that insurers' investment income fell, which, together with policyholder premiums, helped pay for the cost of claims.
He also points out that catastrophic natural disasters around the world, such as the California wildfires, floods in Europe and China, and hurricanes on the East Coast, have pushed up the cost of re-insurance, which insurers buy to protect themselves financially against the risk of major — and particularly costly — disasters.
While natural catastrophes impact homeowner's insurance as well, condo insurance presents its own set of problems. Apartment buildings, on the other hand, are basically a collection of separate houses.
The more units, the bigger the risk. You may have 100 units, which means 100 sinks, 100 baths, and 100 toilets, which is different from a single-family house, which might just have a handful of those.
This not only raises the danger of water leaks, but it also increases the potential for damage from one unit spreading to others, leading to a far more expensive claims.
While condos have been around for decades in Canada, many bigger cities have prioritized densification and building up resulting in an increase in the number of progressively enormous residential complexes.
Almost 1.9 million Canadians lived in condos in 2016. Where 30% of inhabitants in Vancouver live in condos, compared to 22% in Calgary and approximately 20% in Toronto.
The fact that the stock of condominiums in Canada's main cities is aging adds to insurers' cost constraints as well.
The older something gets, the more often you need to replace it.
How can condo owners may avoid paying mind-boggling premiums?
Condo owners can get insurance to cover their belongings, storage lockers, and any unit upgrades. The condo company, on the other hand, has its own insurance policy that covers the building's construction and common amenities.
Condominium fees only cover a small part of this.
Condo owners may face higher premiums, bigger deductibles, steeper condo fees, and greater out-of-pocket expenses when insurance costs rise.
Condo insurance can be affordable if Canadians search around on financial comparison sites, but do they do this?
What does the long-term look like?
Governments are also trying to help keep condo insurance costs down.
B.C. has implemented laws to increase openness, but the province still has fewer legal requirements for condo companies than Alberta and Ontario.
Condo managers will be required to be licensed in Alberta beginning in December.
We hope that the recent drop in premiums is the start of a new trend but with everything going on in the world this year, that may be wishful thinking.2021-09-06T22:42:00-07:002023-11-17T20:36:23-07:00Matt Ferguson