The spring market is off to a healthy start. Buyer activity picked up earlier than was anticipated in the first quarter of 2023, pushing home prices up over the final quarter of last year. As a result, home prices in Canada are expected to continue climbing, albeit at a much slower rate than the last two years.

Royal LePage is forecasting that the aggregate price of a home in Canada will increase 4.5% in the fourth quarter of 2023, compared to the same quarter last year. The previous forecast was revised upward to reflect an earlier-than-expected boost in activity in Canada’s major housing markets.

Following activity levels in the first quarter of 2023 that surpassed the Company’s expectations – a vigorous return of buyer demand coupled with ultra-low housing supply conditions – Royal LePage has adjusted its quarterly forecast for the remainder of the year. On a quarter-over-quarter basis, the national aggregate home price is expected to continue rising modestly but steadily over the next nine months.

“Coming out of a correction, it is common to underestimate the speed at which the market will turn itself around. As market activity is rebounding quicker than anticipated, we are looking ahead with a sense of cautious optimism,” said Phil Soper, president and CEO of Royal LePage. “While we do not expect huge price gains this year, some sense of normalcy is returning to the market.”

According to the Royal LePage House Price Survey released today, the aggregate price of a home in Canada decreased 9.2% year-over-year to $778,300 in the first quarter of 2023. On a quarter-over-quarter basis, however, the aggregate price of a home in Canada rose 2.8%, as buyers began to come off the sidelines following the Bank of Canada’s decision last month to pause interest rate hikes for the first time in a year.

“There has been nothing ‘typical’ about Canada’s housing market since the start of the COVID-19 pandemic. Lockdowns brought the housing market to a grinding halt in early 2020 before the work-from-home revolution catapulted it into a two-year, all-season frenzy of record sales volumes and aggressive price growth,” said Soper. “As markets do, this market overshot, and the inevitable correction was triggered when the Bank of Canada began to rapidly raise interest rates. The downturn came swiftly, and the real estate industry remained depressed for twelve months, a longer correction than the aftermath of the financial crisis thirteen years ago. We have turned the corner and the housing economy is growing again; none too soon for many buyers, who have been waiting patiently for prices to bottom out.”

Read Royal LePage’s first quarter release for national and regional insights.

First quarter press release highlights:

• Single-digit price gains in first quarter driven by early return of sidelined buyer demand and continued shortage of inventory
• Greater regions of Toronto, Montreal and Vancouver post quarterly aggregate price gains of 4.8%, 1.3% and 1.3%, respectively in the first quarter
• Royal LePage urges OSFI to heed the economic dangers that would accompany new, aggressive mortgage restrictions

* POSTED AND SHARED COURTESY OF ROYAL LEPAGE CANADA 

TIPS FOR FIRST-TIME HOME BUYERS:

WHAT DO YOU NEED TO KNOW

EDMONTON/SHERWOOD PARK/ST. ALBERT  

First step: Financing/Preapproval – Determining how much you can spend is vital.  You can meet with a mortgage broker or a bank. They will provide you with “Pre-Approval”.  This helps you focus on properties you can afford. When you reach out, I will connect you with qualified professional mortgage brokers to help you with this first step. 

Second step: Community – When it comes to finding the perfect neighborhood to call home in Edmonton, it’s important to carefully consider your options.  Are you hoping to live near the University of Alberta, or Downtown Edmonton?  Maybe you’re drawn to the charming outskirts of Sherwood Park or St. Albert?  Edmonton has four distinct quadrants to choose from with plenty of suitable homes for you.  Do you favor historic architecture offered in Old Glenora, Westmount, Crestwood? Homes with plenty of character and close to the river valley.  Riverbend and Park Allen offer beautiful homes in our quiet southside.  To find your ideal community to meet your needs and preferences, reach out to me for help.  Having grown up in Edmonton, I can help you narrow down your search quickly. Choosing your neighborhood is crucial for property values.  As we say in real estate, “location” matters most. 

Third Step: House Style – There are many factors for you to consider when searching for your ideal home.  Split-level or bi-level, bungalow, and two-story home, depends on your lifestyle, needs, and preferences.  An attached garage can be beneficial during Edmonton’s colder winters.  How large is your family? This will help you determine how many bedrooms and bathrooms you need.  Open concept is a popular option and will help you think about modern or traditional-style homes.   Fireplaces, home gyms, and home offices are great additions if they fit with your desires and budget.  Do you enjoy entertaining? A large kitchen equipped with an island will bring convenience to your life and a mud room for organization is often desirable.  When you’re ready to look at available listings, I can help you find a home with must-haves and wishes. 

Fourth Step- REALTOR® - You can choose a REALTOR® who works in Edmonton at the outset or later.  As a REALTOR® in yeg and the surrounding area since 2017, connecting with me at the beginning may be helpful to you. One of my favorite parts of being a full-time REALTOR® is educating new home buyers through every step.  You can ask any question and you’ll find I have great resources and connections to help you take every step with more confidence. 

Buying your first home is exciting.  Edmonton’s housing market is excellent. You’ll find lower prices next to cities like Toronto or Vancouver.  Many people move here to Edmonton in the past few years for employment opportunities and relatively affordable housing options.