EDMONTON’S CONDO MARKET

Holding Steady And Doing Okay

BY JOHN HARDY

As in most major Canadian areas, the key segments of Edmonton’s real estate market – re-sales, new builds, condos and rentals – continue to be a rollercoaster, with various reasons for the highs, the lows and the plateaus.

The impact of everything from spiking mortgage rates, consumer jitters, affordability, shifting housing trends and increasing demand for rentals have a ripple effect on every segment of Edmonton’s real estate market and particularly on Edmonton’s condo market.

There’s a critical domino effect when it comes to real estate. Mortgage rates affect affordability and affordability is a key driver of consumer confidence. With housing in general, including condos, Edmonton buyers are more price conscious than before. Consumer’s belts are tightening and rising inflation continues to broadside household budgets.

According to national real estate stats, spiking mortgage rates continue to take a toll. In Alberta, average monthly mortgage payments for first-time homebuyers were bumped 33 per cent in the past year. Analysis of the numbers also shows the caution that, combined with the other effects of inflation, the spiking interest rates are also creating stress for families with variable-rate mortgages or those who have recently renewed.

What a typical family might have been able to afford two or three years ago may not be the same in 2023. While the affordability of Edmonton’s detached homes has gone up, the reality is that while it is still an affordable option in comparison to markets like Vancouver or Toronto, it is still out of reach for many buyers in Edmonton.

The median Edmonton condo price dropped by a slight 0.4 per cent year-over-year to $183,100. Provincially, the