Edmonton house prices forecasted to rise in 2012
CMHC anticipates 2.4% increase in coming year
Annual average MLS prices in the Edmonton census metropolitan area will rise by less than one per cent to $329,000 from $328,803 in 2011.
Next year, they will rise by 2.4 per cent, according to the federal agency’s new forecast report released Wednesday.
In 2012, the average sale price will reach $337,000 in Edmonton, CMHC said.
A buyers’ market limit price growth for resale homes this year,” said CMHC senior market analyst Richard Cho.
“For the first part of the year, the market was more in favour of the buyer so we didn’t see a lot of price growth in the first half of the year,” Cho said.
“But we are seeing conditions improving and a movement away from buyers closer to balanced levels as the economy improves and more jobs are created. That will support demand and put some more pressure on prices.”
The report is forecasting total MLS sales of 16,500 this year, which is little changed from 16,403 in 2010, and 17,200 in 2012, which is a 4.2-per-cent annual hike.
But total housing starts in the Edmonton area are expected to fall by 10 per cent this year from 9,959 to 8,950 before recovering next year to 9,900.
“There’s been a generous supply of homes on the resale side,” Cho said. “That has been diverting some sales away from the new home market to the resale market.”
He said home construction will pick up as resale conditions become more balanced and listings numbers fall.
Copyright The Edmonton Journal