Edmonton builders are reporting a increase in supply, which is welcomed as a shortage of new listings has caused a spike in home prices. Some existing Edmonton home prices across the region were up 13.6% in September from a year ago as supply was short in almost every region.
The existing-homes market is in short supply so we’ve gone from a buyers market to sellers says the report.
October housing starts for Edmonton new homes total region rose close to 55% during this same time period last year, according to figures released Monday by Canada Mortgage and Housing Corp.
Our housing market’s surprising turnaround is spreading to new-home construction because the market is responding to a supply shortage that has sent pricing soaring for existing homes. All this increase in building of new homes in the Edmonton
region will likely not be quick enough to help with the demand for new homes being pumped up by record low interest rates.
Despite this increase for Edmonton home builders, this new housing activity, the 4,560 starts recorded to date this year, are still behind construction in the first 10 months of 2008. Housing starts across Alberta’s seven largest cities totalled 2,179 homes in October alone, up 29.5 per cent from October 2008.
Edmonton home builders are on schedule to start building on 5,000 homes, 24% down from last year reported the 2009 Housing Market Outlook for the Edmonton census metropolitan area.
It was the best October since 2006 for single-detached homes. Edmonton home builders poured foundations for 598 homes in October, up 168%. So far this year, 2,844 single-detached homes were started, up 30 % from the qual period of last year..
Builders in Edmonton are now experiencing the fourth consecutive month that total housing starts have surpassed year-earlier levels.
Home-ownership costs are likely to rise in 2010 as mortgage rates have hit rock bottom and prices are set to rise, all reports say. A 2009 new single-detached home in Edmonton will be an average of $535,000, up 4.5 % from 2008. Reports are predicting that the average price will soften in 2010 by 2.8 per cent to $520,000 because of a “lagged effect” of when homes are priced and when they are completed.
In rentals, across the board vacancy rates across Greater Edmonton will continue to trend up this year. Landlords should see this change for the better in 2010, based on the economic conditions continuing to improve the report said.