Prices to rise in Edmonton by 3%‏

With more investors fighting to get into the Edmonton market, prices are expected to increase by three per cent this year.

Edmonton’s housing market will enjoy another year of steady growth thanks to investors moving in to avail of low vacancy rates and high rents, according to the region’s realtor association.

In its annual housing forecast, published yesterday, The REALTORS Association of Edmonton forecasts MLS sales will increase by about three per cent for the year. This prediction follows sales of $8 billion in 2013.

The association’s president, Greg Steele, expects sales of single-family homes to retain static, at about 10,500. First-time buyers and investors will primarily drive the market, he says, with condos, duplexes and rowhouse sales expected to rise by 2.5 per cent in the region. The city's apartment vacancy rate declined to 1.4 per cent in October, with the average rent for a two-bed unit now at $1,141 per month.

“Market growth is always good for the seller who can expect to see a capital gain on their property,” he says. “But it is also reassuring for the buyer who can expect steady growth upon entering the market.”

Condo prices are expected to increase by two per cent during the year to $246,000, while single-family homes will rise by three per cent to $422,000.

Edmonton’s 2013 housing figures were somewhat boosted by the sale of million-dollar homes, 115 in total, marking an increase of 29 per cent compared to 2012. The highest-prices single-family home sold for $3.4 million, while a high-end condo went for $1.6 million.