Key Insights from the recent Realtor’s Forum
I attended the Realtors’ Forum in Edmonton and listened to an Economic Panel featuring a local Chief Economist, New Home Builder, and Planner from the City of Edmonton. They shared some highly valuable insights about the local real estate market, the potential impact of tariffs and the continued demand for Edmonton properties.
Impact of Tariffs on Key Sectors
Energy Exports: Alberta exports about 80% of its energy production to the U.S., and currently, there is a possibility of the US implementing a 10% tariff on energy—significantly lower than the proposed 25% for other industries. This positions Alberta more favorably, but vigilance is needed as we navigate these changes.
New Home Construction: Should tariffs come into effect, the cost of new home construction is expected to rise, though not as sharply as during the early stages of the pandemic when lumber costs increased by approximately $50,000 per build. The industry adapted by sourcing alternatives, yet pricing remains uncertain. For those considering new home purchases, the current window oEers an opportunity to act quickly before prices potentially rise further.
Interprovincial Interest and Market Dynamics
Ontario's Auto Sector: The potential impact of tariffs on Ontario’s auto industry could lead to increased interest in affordable housing markets like Edmonton. As affordability becomes more critical, especially across Canada, Edmonton’s competitive pricing makes it an attractive alternative.
Rising Demand from BC and Ontario: Currently, buyers from Ontario and BC are acquiring Edmonton's new builds at a faster rate than local buyers. With lower land development costs than those in Calgary and a faster approval process from the City of Edmonton, these factors contribute to a robust building start rate.
Growth and Future Prospects for Edmonton
Population Growth: Over the past two years, Edmonton has welcomed 120,000 new residents, reflecting robust demographic growth. Investment into both Alberta and Edmonton is flowing into diverse sectors like clean energy, AI, technology, and food manufacturing, signaling a broader economic expansion.
City’s Strategic Growth Plan: Adopted in 2020, Edmonton’s growth plan aims to accommodate an additional one million residents over the coming decades. The comprehensive strategy includes enhancing transportation infrastructure, increasing housing density along key corridors, encouraging infill developments, and a proactive approach to future planning.
Why Edmonton Stands Out
Affordability and Young Families: Affordability is a key issue nationwide, prompting many young families to move to Edmonton. The city’s afordable housing options contribute to its sustained market demand and Alberta’s advantageous position compared to other provinces.
Current Market Trends: These trends are anticipated to continue into the year, with a steady demand for housing. If you’ve been considering a move, now may be the optimal time to capitalize on these developments.
Let’s Discuss Your Next Steps
We’re here to help you navigate these insights and explore how they relate to your real estate goals. Whether buying, selling, or investing, we can provide guidance tailored to your unique situation. Please feel free to reach out so we can discuss how these market conditions may impact your plans.
Best regards,
Janice