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Edmonton home buyers seem poised to return to the spring market
April 13, 2023 | Posted by: Angela Robinson
A new report by Royal LePage suggests that home buyers in Edmonton who put their house-hunting plans on hold due to rising borrowing costs may return to the market in time for the traditionally busy spring season. The report found that over a quarter of buyers across Canada who had paused their home buying plans in the last year plan to resume their search this spring. Meanwhile, another 36% of potential buyers are ready to return if the Bank of Canada shows more signs of keeping interest rates stable. Chief Executive Officer and President of Royal LePage, Phil Soper, said that the study reveals how many people had the capacity to upgrade their housing situation, but lacked confidence. The report also found that 7 out of 10 buyers were looking for fixed-rate, five-year mortgages at a time when interest rates are probably near their cyclical peak.
Local realtor, Beverley Hasinoff with Liv Real Estate, confirms that Edmonton’s real estate market was experiencing more activity prior to the traditionally busy spring season. She noted a significant increase in the number of buyers resuming their searches and selling properties in a matter of days, some with multiple offers. Hasinoff also pointed out that low supply is partly the result of higher borrowing costs, which serve as a disincentive to move-up buyers. Despite the low inventory, sellers need to price their homes accordingly, as buyers are more price-sensitive this year than last.
Data from the Realtors Association of Edmonton indicates that there is growing demand, with sales increasing 10% week over week. At the same time, new listings fell by 3%, while the average price of a home declined 4% to $363,000. This is lower compared to the Canadian Real Estate Association's March statistics, which show the average price of a home in Canada was about $675,000. Soper highlights that Edmonton remains a very affordable market, and people were hesitant to enter the market last year due to rapidly rising rates.
Overall, the report suggests that there is an increasing trend of buyers resuming their home buying plans this spring, with a surge of activity expected in the coming months. For those in Edmonton looking to buy or sell their homes, the services of Alberta Mortgage Professionals could be of help. With their expertise in the mortgage industry, they can provide assistance in navigating the current market and help find the best mortgage solutions to fit each individual's needs.
Full article: https://www.msn.com/en-ca/money/topstories/edmonton-home-buyers-seem-poised-to-return-to-the-spring-market/ar-AA19CK1N?fullscreen=true&cvid=77f13c88c8d34fbd973d7b3ecc950315&ei=72#image=1
