If you're considering building or buying a new home in Edmonton and Greater Area, you may be wondering if now is the right time to take the plunge.
The good news is that there are several compelling reasons why buying a new home in Edmonton right now could be a smart financial decision. Let’s explore some of the key factors that make this an opportune time to invest in Edmonton’s real estate market.
One important factor to consider when buying a new home is the interest rate on your mortgage. Fortunately, interest rates in Canada are currently still at historic lows, even with the recent rate increases, making it an excellent time to secure a mortgage with a low rate. Lower interest rates mean you’ll pay less over the lifetime of your mortgage, which can save you tens of thousands of dollars in the long run.
Another reason to consider buying a new home in Edmonton right now is the city’s strong real estate market. In recent years, Edmonton has experienced steady growth in home prices, with an average increase of 6% year over year for 2023. While this growth rate may not be as high as some other Canadian cities, it’s a sign of a stable and healthy real estate- providing peace of mind for buyers not needing to experience the massive peaks found in other Canadian markets.
Despite the recent growth in home prices, Edmonton remains an affordable place to buy a home compared to other Canadian cities like Toronto or Vancouver. According to a recent report by the Edmonton Real Estate Board, the average price of a single-family home in Edmonton was $485,739 in March 2023, which is significantly lower than the average prices in other major Canadian cities. Interestingly, Edmonton benchmark housing prices increased only 16% over the past 15 years, while the official inflation for this period is about 38%.
A very telling statistic that was provided in a recent Oxford Economics review, noted Edmonton being rated the 5th in a ranking of North American metropolitan cities by housing affordability. To contrast, Vancouver, Toronto, and Hamilton, finished #1,#2 and #3 respectively for least affordable metros in North American. This placed them ahead of we might deem “the usual suspects”, like L.A., NYC, and Miami. Other Canadian cities that ranked as some of the Top 10 Least Affordable in North America are: Ottawa (#6) and Montreal (#9).
Edmonton’s economy is another reason to consider buying a new home in the city. The city is home to a diverse range of industries, including oil and gas, agriculture, and technology. Edmonton is often referred to as a “Government city” and is home to various government offices, agencies, and departments due to Edmonton’s role as the capital of the province. The presence of government institutions and a large number of public servants seeking accommodation creates a consistent demand for housing in the city. This demand tends to be stable, which can contribute to a relatively steady housing market, even during economic downturns. Additionally, government employees often enjoy stable incomes and job security, which can positively affect the affordability and stability of the housing market in Edmonton.
Additionally, the city is a major transportation hub, with an international airport and several major highways, making it a desirable place for businesses to operate.
Finally, it’s important to consider the quality of life that Edmonton offers. The city has a vibrant cultural scene, with numerous festivals and events throughout the year, and is home to several world-class museums and art galleries. Additionally, Edmonton is known for its excellent healthcare system and high-quality schools, making it an attractive place to live for families and retirees alike.
There are many reasons why now is a great time to build or buy a new home in Edmonton. With favorable interest rates, a strong real estate market, affordable prices, a stable economy, and a high quality of life, Edmonton is an attractive place to invest in real estate. If you’re considering buying a new home, now is the time to act and take advantage of the current market conditions. Take a look at our Quick Possessions for what Coventry has available now or start customizing one of our Home Designs and take advantage of our Free Basement promotion!
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