Edmonton home prices see biggest drop across Canada
Royal LePage predicts home prices in Edmonton will fall another 0.9 per cent in 2017
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Edmonton is an odd duck in Canada's housing market, and also a lame one.
The city’s housing prices slipped once more in the final quarter of 2016, making its annual decline sharper than any other Canadian city, according to a new report from Royal LePage.
In most other cities, house prices climbed in 2016.
“Everywhere else across the country, with the exception of the prairie provinces, has probably had one of the best years in real estate in a really long time,” said agent Tom Shearer.
Shearer said it’s not that bad, though – the aggregate house price in the Edmonton region dropped 2.1 per cent year-over-year, to $378,247, but that price is higher than 2011 when the city was recovering from the 2008 recession.
Edmonton also weathered the storm much better than most cities did in 2015, when Calgary had a particularly rough year for housing prices.
“It’s not like we’re seeing house values falling off a cliff or anything like that,” Shearer said.
The odd duck stuff? Bungalows dropped more than any other housing type in Edmonton, by 2.7 per cent year-over-year, while nationally the price of a bungalow grew by 12.5 per cent.
Shearer said that figure will start to even out as Edmonton’s downtown gentrifies.
“Here in Edmonton, we have a lot of land to grow out to and some of our inner-city neighbourhoods are still kind of in the gentrification stage, whereas that’s already happened in other parts of the country,” he said.
Shearer expects condo prices – down 1.9 per cent from 2015 – to keep struggling, after a 2014 construction boom left the city with a glut of condos.
Overall, he expects Edmonton's housing prices to start recovering in late 2017, after falling a further 0.9 per cent.