December is quickly passing! And, that only means that 2023 is getting closer. In lieu of the end of the year, we thought it would be best to write a year-end recap of all of the content on our blog. This way, you can catch up on any missed articles and soak in some of […]
Canadian real estate listings are continuing to sell for an astronomical price. For most Canadians, the concept of homeownership is out of the question. Unless you are willing to spend half of your household income, owning a home is nearly impossible for those in the middle class. Almost all of the cities within Canada have sky-high housing prices. Despite these facts, properties in Edmonton are selling for substantially less money. Find out more about the affordability of the Canadian housing market by reading below.
In the past, it wasn’t as difficult for middle-class families to afford a home. In large cities, people were able to move to smaller areas and find more affordable real estate. However, this is no longer the case. Cities where families were once able to find refuge from high real estate prices are now too far out of reach for most people’s monthly incomes. The average middle-class family now needs to fork out over 50% of their monthly income in order to take on a mortgage. This has contributed to a large gap in affordability across the country.
For instance, in a place like Toronto, the average household would need to spend 75% of their income on their mortgage. This is over 50% more than what the previous generation needed to spend on their mortgages. Thus, making it extremely difficult for anyone to purchase a house in the Toronto area.
Another city in Canada that lacks affordable housing is Vancouver. Vancouver’s real estate is up there with some of the most expensive housing in the world. The discrepancy between income and housing price is vast in the Vancouver area. For example, the median household would need to spend nearly 82% of their income to pay monthly mortgage payments. This is the most extreme example in all of Canada.
The average family income would need to be 50% higher than what it is currently in order to comfortably afford your average home in Canada. Affordability has rapidly dissipated from the Canadian housing market. It has been over 27 years since the cost of living has been this high, this fast. Getting on the property ladder has never been so difficult for young buyers. This is because the average household needs to make 154k per year to afford a home.
If you don’t make 154k per year, owning a home might seem impossible. Or, too risky for your budget. However, for those looking to make the move to Alberta, homeownership might be in the realm of possibility. Calgary and Edmonton are the only two major markets that boast affordability. Contrary to the rest of Canada, those living in Calgary only need to spend 27% of their income on their mortgages. This is a considerable decrease in price compared to cities like Vancouver or Toronto. In addition, Edmonton has seen an even bigger reduction in price. Edmonton homeowners only need to pay 25% of their income in order to carry a mortgage. Buying a home is more comfortable for middle-class families in Edmonton and Calgary.
Properties in Edmonton are starting to become even more affordable. This is thanks to higher salaries within the city, more supply, and slowing demand. Furthermore, taxes in Alberta are lower than in other provinces in the country. This ensures that families have a higher disposable income. In addition, your typical Albertan family is likely to be able to afford a home without any concern. Although, there still remains work to be done for low-income families and marginalized populations. Despite this, it is much easier for young buyers and new families to buy properties in Edmonton as opposed to other Canadian cities.
The real estate market is much more affordable if you live in Edmonton. Make the decision to buy properties in Edmonton today for more financial comfort. If you have any questions or concerns about buying a property in Edmonton, contact us today. Don’t hesitate to reach out if you’re interested in buying a new home. Our team can put you in touch with the resources you need to get your real estate goals on track. Be sure to check out our social media for the latest updates and more! We look forward to working with you in the near future!
If you’ve been following the news surrounding Canadian real estate since January of 2022 you’d know about the record high prices sweeping the nation. Home prices have reached their peak across every province in Canada. For some, these high prices are forcing families to relocate to their hometowns. Especially for those currently living in the Okanagan. If you are interested in learning more about how the cost of living is affecting homeowners in Canada, continue reading the article below.
The Okanagan has seen incredible hikes in the price of real estate over the course of the last five months. The extraordinary cost of living is making it difficult for most out-of-province homeowners to afford their properties. In April of 2022, the benchmark price for a single-family home in the Central Okanagan climbed to a whopping $1.1 million. Last year, the average price for a home in the Okanagan sat around $829,000. Thus, indicating a 34% increase in cost. On the contrary, the average single-family home price in Edmonton was $510,988 in April of 2022.
It is apparent that the cost of living in places like Edmonton is much more affordable than in the Okanagan. Residents who have lived in the Okanagan most of their lives are moving back to the prairies in order to make ends meet. Renters and homeowners alike are being priced out of their homes in the Okanagan. Despite having full-time jobs and living with family, many people claim that it is still too expensive to live in the Okanagan. New families are finding it especially hard to afford housing in the Okanagan. Living off of one salary is almost impossible given the rate of inflation.
Residents who have chosen to move from the Okanagan to Edmonton and other surrounding areas in Alberta are much more comfortable with their finances. People living in Edmonton are able to afford spacious houses in place of their tiny Okanagan apartments. And, all of this is afforded at a lower price point. The one thing that former Okanagan citizens miss, is the scenery.
Homes for sale in Edmonton, Calgary, Airdrie, and Cochrane all boast a low cost for a substantial property. Citizens of Alberta can purchase 3-bedroom houses for under $450,000.
There are several reasons why people in the Okanagan have made the decision to move to homes for sale in Edmonton. The number one reason is a lower cost of living. Everything from real estate to food is cheaper in Edmonton than in the Okanagan. Residents who may not have been able to afford a 2 bedroom apartment in the Okanagan will often be able to afford large, upscale homes in Edmonton. Furthermore, the average cost of groceries is about 200-400 dollars per month in Edmonton. However, this estimate can vary depending on brand, taste, and habits.
Aside from a lower cost of living, the Edmonton job market has seen positive growth in the last little while. Large employers like the Alberta Health Services, the Government of Alberta and Stantec, provide hundreds of thousands of jobs to Edmonton citizens. Salaries average around $60,000 per year for your typical Edmonton citizen.
Edmonton’s landscape provides individuals with plenty of wide-open spaces outdoors. For instance, the Elk Island National Park and Beaver Hills Dark Sky Preserve are both popular places to visit outside of the city. There are also plenty of hiking, biking and walking trails for residents to explore. Check out William Hawrelak Park or The Grandin to Groat Loop for an epic outdoor adventure!
There are also plenty of restaurants, breweries and bars to choose from for a night out. As well as, nightclubs, theatres and festivals to keep you entertained throughout the year.
The real estate market is much more affordable in Edmonton. Make the move to houses for sale in Edmonton today for more financial freedom. If you have any questions or concerns about buying a property in Edmonton, contact us today. Don’t hesitate to reach out if you’re interested in buying a new home. Our team can put you in touch with the resources you need to get your real estate goals on track. We look forward to working with you in the near future!
Canada’s housing crisis has come to a head. Provincial and federal governments are struggling to get a hold of the problem at hand. In British Columbia, a new presale policy has been announced to be integrated. And, foreign buyer taxes have jumped up in many provinces across the country. Despite the provincial efforts to cool the housing market in Canada, there continue to be issues surrounding supply and affordability. In an attempt to ease the housing crisis, the federal government is implementing some key changes to help Canadian buyers. Learn more about how Edmonton houses for sale will be affected by the following federal changes in the article below.
The liberal government in Canada is making an effort to cool off the housing market in Canada through two main channels. Over $10 billion in funding has been allocated to help speed up construction and repairs of homes. Furthermore, the government has decided to put a ban on foreign investors purchasing real estate in Canada. As well as, introducing new tax measures to reduce speculation.
These methods make up a large chunk of the federal budget. In order for everything to proceed smoothly, cooperation from other levels of government will be necessary. Ideally, the government’s plan is to double the number of homes built in the next 10 years. Collaboration from the government, construction companies, and citizens will be essential to the success of the budget. The housing section of the budget has a clear focus on increasing supply. Moreover, there is $4 billion set aside for municipalities to ensure that homes are being built swiftly. The money will go towards the planning and delivery of housing, with an estimated 100,000 new units in the next 5 years.
$1.5 billion is set to be spent in the next 2 years to create 6,000 new affordable housing units through the Rapid Housing Initiative. In addition, there will be $475 million going towards rental assistance and $2.9 billion to provide housing to vulnerable Canadians. Other commitments include $600 million to attend to homelessness by creating new programs and supporting existing programs. Furthermore, $1 billion will be used to incentivize green energy use at home, including grants and loans. As well as, $150 million over the next 2 years for affordable housing in Northern Canada.
The Liberal government has said that they will leverage $40 billion-plus in infrastructure to speed up the process across various cities.
In February, the national average home price climbed 20% to $816,720. All the while, rental rates continue to rise. As for Edmonton houses for sale, supply and demand match current national trends. In March, 472 duplexes were put up for sale and 441 of those were sold. Thus, indicating a 93% listing-to-sales ratio! Nearly every duplex or townhome that gets listed is being sold.
Although supply continues to be at an all-time low, spring has brought hope for buyers-to-be. More listings have surfaced now that spring is here. There has been an 8% increase in Edmonton houses for sale this March! Additionally, condo and apartment sales have started to grow. March saw the biggest year-over-year leap in sales, at 67%. In the past, condo and apartment sales were few and far between in the Edmonton market. Edmonton continues to be an affordable market for out-of-province buyers to find a home and settle down.
The lack of supply in Canadian real estate markets is evident. The government has recognized this as the central problem in the housing crisis. Liberals are hopeful that the budget will provide some relief for Canadian citizens. For the next 2 years, foreign buyers will be banned from purchasing Canadian real estate. Although, there are several exceptions to this measure.
The Liberal government will also be reviewing the impact of large companies buying homes on the market. And, how they intend to stint the growing trend. A new bill of rights is proposed to include several measures to protect homebuyers. For instance, the right to a home inspection, no more blind bidding, possible mortgage deferrals, and more disclosures from real estate agents.
The real estate market is constantly fluctuating and buying Edmonton houses for sale can appear intimidating. However, with the help of an experienced REALTOR® in the Edmonton area, the process is much less daunting. If you have any questions or concerns about buying Edmonton houses for sale, contact us today. Don’t hesitate to reach out if you’re curious about the government’s plans for an increased housing supply. Our team can put you in touch with the resources you need to get your real estate goals on track. We look forward to working with you in the near future!
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