Singing the homebuyer blues

People looking to purchase an existing home in Calgary or Edmonton might be feeling irritated and discouraged. There isn’t a lot on the market these days and what is available is going up in price.

In March 2014, Calgary’s total number of active residential listings reported by the Calgary Real Estate Board and the Canada Mortgage and Housing Corporation (CMHC) decreased 19 per cent (year-over-year). As a result, CMHC reports residential prices on the Multiple Listing Service (MLS) are expected to rise five per cent throughout 2014, to an average of $459,000. The average price in 2015 is anticipated to rise by three per cent to $472,000.

The total number of active residential listings in Edmonton fell seven per cent in March (year-over-year). Prices increased 4.8 per cent year-over-year during the first quarter of 2014, reaching an average of $354,332. CMHC predicts the average MLS price in Edmonton will increase 4.1 per cent to $359,000, though it suggests demand and supply pressures could move closer to equilibrium in 2015, causing prices to slowly rise at around 2.2 per cent.

Demand for existing homes in Alberta is the result of growing employment numbers and the influx of people moving here to take those jobs. Unfortunately, fewer listings and increasing prices in both cities are realities homebuyers will have to endure. There is an upside: as prices rise, more people will be inclined to list, which will boost supply.

*Article kindly provided by Todd Hirsch of ATB Financial.  Thanks Todd!!