Edmonton condo market at risk of decline

A new report is forecasting oil prices will negatively affect Edmonton’s real estate investing this year; particularly that its condo sales and prices will decline.
The Winter 2015 Metropolitan Condo Outlook released by mortgage insurer Genworth Canada stated the median resale condo price is set to dip 4.6 per cent to $229,006 in 2015. By 2016, the report it will drop even further by 1 per cent.
Moreover, condo sales may also fall 25.8 per cent this year, before increasing slightly by 1.7 per cent in 2016.
“Edmonton’s new condominium market will also be side-swiped by the area’s weaker economy,” the report states.
“A big jump in completions this year, combined with small decreases in absorptions, will push inventories to 340 units this year and nearly 600 units in 2016. Such backlogs are reminiscent of, yet below, inventories in 2010 and 2011, following the 2009 recession.”
Calgary may suffer a weak condo market, but most other major cities will find modest gains in sales and prices, the report added.
“While the health of apartment condominium markets varies significantly by region, nowhere do we see a bubble about to burst,” Robin Wiebe, senior economist at the Centre for Municipal Studies at the Conference Board of Canada, said in written statement.

More Mortgage Guide