Attached are the CMHC Prairies Region Highlights Housing Market Outlook Press Release and Edmonton Housing Market Outlook Press Release for Fall 2010.

Some exciting points on Edmonton:
1. New housing construction market is healthy and recovering with a 54% increase over 2009 levels. While not creating over-supply to compete in resale markets and pushes prices down
2. Average prices for new home construction dropped 11% from 2009 to 2010 forecasted year ending estimates.
2. Meanwhile, average house prices are predicted to be up 3% at year ending 2010. Expected to remain flat in 2011.
3. Total transaction volume of resale homes is expected to remain at below 10 year average levels as a carry-over from 2010 activity, into 2011.
4. Apartment vacancy dropped 0.5% from 2009 to 4.0%, and is expected to drop another 0.5 to 3.5% by October 2011. This is a healthy balance still, but is great news for landlords. Average rents expected to rise slightly into 2011 as a result – avg two bedroom from $1,000 to $1,020 per month.
5. Annual employment levels have remained steady at 617,000 since growing from 599,100 in 2007. Unemployment is predicted to decrease, within healthy job market ranges still, in 2011.
6. Net Migration has continued to grow year over year, with a 10% drop from 2009, Edmonton still grew by a net of 11,205 people (forecasted to end 2010). 2011 forecast is for another 12,100 new residents to Edmonton net in 2011.

What does this mean? This creates new tenants, increase demand for rental, pushing rental rates up and keeping vacancies low. Job stability, and minor growth predicted in 2011 of 2% creates demand for resale and new construction housing, thus increasing average home prices as the current oversupply is eaten up. These are all signs of a very healthy, prosperous, and balanced growth market for Edmonton Real Estate in 2011 and the next few years.

Contact the Preferred Group with RE/MAX River City for more information or to find out the best plan for your specific real estate situation in today’s market. 780-701-2626 or www.PreferredGroup.ca

2010 Fall - Edmonton

2010 Fall - Prairies