Seven housing markets in Canada are expected to see modest price increases before the end of the year, according to a ReMax real estate survey. .Those markets are Oakville, Muskoka and Thunder Bay in Ontario, Halifax, NS, Moncton, NB and Calgary and Edmonton in Alberta. .A new report from real estate website Zoocasa says the Alberta cities are positioned to perform better, due to more affordable housing and increased inter-provincial migration. ."Generally speaking, Alberta hasn’t experienced many of the peaks and dips that some other Canadian provinces have faced,” says Zoocasa. “As housing markets cooled at the end of summer, real estate activity in Calgary has remained relatively flat.” .Zoocasa spoke with Drew Carlson, a real estate agent with eXp Realty, who says, “Albertans are making power moves and buyers in Ontario and BC are catching on.” .Zoocasa acknowledges, like all Canadians, Albertans are facing very high inflation and rising interest rates “but they don’t seem to be slowing down buyers to the same degree as other provinces,” says Zoocasa. .“Alberta is one of the largest Canadian real estate markets, but prices are well below other regions. According to the Canadian Real Estate Association the benchmark price in Calgary in August was $519,200, 56% lower than Greater Vancouver’s benchmark price for the same period and 55% below the Greater Toronto Area.” .Alberta is becoming a hot spot for out-of-province investors, says Carlson. .“A lot of out-of-province buyers and investors are catching on to how much more affordable Alberta markets are compared to some other provinces,” he says. “Buyers are realizing they can afford what they want in Alberta, and investors have more purchasing power.” .Alberta’s affordability is credited with continued net positive interprovincial migration. Statistics Canada says in the second quarter of 2022, the total was 9,857 for a fourth-consecutive quarter of positive results. Over those four quarters 23,132 Canadians relocated to Alberta, with 15,208 arriving in the first two quarters of 2022. .“Aside from its comparatively low real estate prices, there are a few external factors that are unique to the province that are helping drive its market activity upwards relative to the rest of Canada,” says Zoocasa. “The province is known for its job opportunities in major industries including technology and energy, and as oil prices surged this year, so did the number of new homes being built as more job opportunities arose.” .The Canada Mortgage and Housing Association reports there were 2,807 urban new home starts in Alberta in August, a year-over-year increase of 6.2%. Single-family homes comprised 46.7% of the starts, with apartments making up 33.2% of starts. . “Alberta has a competitive job market, especially in the energy sector, that is appealing to many Canadians,” says Carlson. “As our leading industries grow, so does the demand for housing.” .According to a report from the Calgary Real Estate Board (CREB), seven new Calgary housing communities started development earlier this year, each offering multiple new builds around the city. .With the rising interest rates, more buyers and sellers are choosing to wait until the Bank of Canada hikes are over. .More often buyers and sellers in Alberta are adapting to the rising interest rates and re-evaluating their plans, says Carlson. .“Price reductions are common in Calgary and Edmonton right now,” he says. “Sellers are realizing that they have to be realistic and price their home properly.” .A report from CREB earlier this month highlighted a shift in the Calgary market, with single-family home sales down slightly, while apartment condo sales increased 58% year-over-year and 65% year to date. .“Some Alberta buyers are rethinking their investment plans instead of putting them off,” says Carlson. “During the pandemic, many people wanted more space because they were working from home and they were set on a certain home type.” .“Now, we’re seeing more buyers that are motivated to buy and are willing to explore all their options, including townhomes and apartment condos.”
Seven housing markets in Canada are expected to see modest price increases before the end of the year, according to a ReMax real estate survey. .Those markets are Oakville, Muskoka and Thunder Bay in Ontario, Halifax, NS, Moncton, NB and Calgary and Edmonton in Alberta. .A new report from real estate website Zoocasa says the Alberta cities are positioned to perform better, due to more affordable housing and increased inter-provincial migration. ."Generally speaking, Alberta hasn’t experienced many of the peaks and dips that some other Canadian provinces have faced,” says Zoocasa. “As housing markets cooled at the end of summer, real estate activity in Calgary has remained relatively flat.” .Zoocasa spoke with Drew Carlson, a real estate agent with eXp Realty, who says, “Albertans are making power moves and buyers in Ontario and BC are catching on.” .Zoocasa acknowledges, like all Canadians, Albertans are facing very high inflation and rising interest rates “but they don’t seem to be slowing down buyers to the same degree as other provinces,” says Zoocasa. .“Alberta is one of the largest Canadian real estate markets, but prices are well below other regions. According to the Canadian Real Estate Association the benchmark price in Calgary in August was $519,200, 56% lower than Greater Vancouver’s benchmark price for the same period and 55% below the Greater Toronto Area.” .Alberta is becoming a hot spot for out-of-province investors, says Carlson. .“A lot of out-of-province buyers and investors are catching on to how much more affordable Alberta markets are compared to some other provinces,” he says. “Buyers are realizing they can afford what they want in Alberta, and investors have more purchasing power.” .Alberta’s affordability is credited with continued net positive interprovincial migration. Statistics Canada says in the second quarter of 2022, the total was 9,857 for a fourth-consecutive quarter of positive results. Over those four quarters 23,132 Canadians relocated to Alberta, with 15,208 arriving in the first two quarters of 2022. .“Aside from its comparatively low real estate prices, there are a few external factors that are unique to the province that are helping drive its market activity upwards relative to the rest of Canada,” says Zoocasa. “The province is known for its job opportunities in major industries including technology and energy, and as oil prices surged this year, so did the number of new homes being built as more job opportunities arose.” .The Canada Mortgage and Housing Association reports there were 2,807 urban new home starts in Alberta in August, a year-over-year increase of 6.2%. Single-family homes comprised 46.7% of the starts, with apartments making up 33.2% of starts. . “Alberta has a competitive job market, especially in the energy sector, that is appealing to many Canadians,” says Carlson. “As our leading industries grow, so does the demand for housing.” .According to a report from the Calgary Real Estate Board (CREB), seven new Calgary housing communities started development earlier this year, each offering multiple new builds around the city. .With the rising interest rates, more buyers and sellers are choosing to wait until the Bank of Canada hikes are over. .More often buyers and sellers in Alberta are adapting to the rising interest rates and re-evaluating their plans, says Carlson. .“Price reductions are common in Calgary and Edmonton right now,” he says. “Sellers are realizing that they have to be realistic and price their home properly.” .A report from CREB earlier this month highlighted a shift in the Calgary market, with single-family home sales down slightly, while apartment condo sales increased 58% year-over-year and 65% year to date. .“Some Alberta buyers are rethinking their investment plans instead of putting them off,” says Carlson. “During the pandemic, many people wanted more space because they were working from home and they were set on a certain home type.” .“Now, we’re seeing more buyers that are motivated to buy and are willing to explore all their options, including townhomes and apartment condos.”
