Much of the Alberta housing sector’s weakness could be traced to the past year’s oil and gas price crashes, Royal LePage says
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In its recent nationwide housing price survey, leading brokerage Royal LePage found that Edmonton residential real estate prices slipped by 2.1 per cent in the final quarter of 2016—the greatest year-over-year decline in sale prices throughout Canada.
The aggregate home value across all housing types in Edmonton fell to $378,247 in the quarter, down from $386,202 during the same period in the previous year, CBC News reported.
To compare, Calgary prices saw a 1.0 per cent decrease over the same time frame, down to $460,837.
Much of the woes of the Alberta real estate segment could be attributed to the declines in the value of oil and gas observed over the past few quarters, according to the Royal LePage study.
“Construction of major oil and gas facilities has turned off up north and drilling is way down, which impacts our market as we're a major service hub to those industries,” Royal LePage broker Tom Shearer stated.
And while the Trans Mountain pipeline expansion project is predicted to have a net positive effect on housing price growth, the value of Edmonton homes will still suffer a further 0.9 per cent decline this year.
Overall, the Canadian average home sale price at the end of 2016 stood at $558,153.
Gradual upward trends in Quebec and Atlantic Canada home values will help greatly in offsetting the sharp performance disparities between various Canadian markets, Royal LePage president and CEO Phil Soper said.
“In 2017, we anticipate a movement away from the regional extremes of real estate feast and famine – and that is a very good thing.”
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Edmonton market’s recovery to encounter significant speed bumps this year
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The aggregate home value across all housing types in Edmonton fell to $378,247 in the quarter, down from $386,202 during the same period in the previous year, CBC News reported.
To compare, Calgary prices saw a 1.0 per cent decrease over the same time frame, down to $460,837.
Much of the woes of the Alberta real estate segment could be attributed to the declines in the value of oil and gas observed over the past few quarters, according to the Royal LePage study.
“Construction of major oil and gas facilities has turned off up north and drilling is way down, which impacts our market as we're a major service hub to those industries,” Royal LePage broker Tom Shearer stated.
And while the Trans Mountain pipeline expansion project is predicted to have a net positive effect on housing price growth, the value of Edmonton homes will still suffer a further 0.9 per cent decline this year.
Overall, the Canadian average home sale price at the end of 2016 stood at $558,153.
Gradual upward trends in Quebec and Atlantic Canada home values will help greatly in offsetting the sharp performance disparities between various Canadian markets, Royal LePage president and CEO Phil Soper said.
“In 2017, we anticipate a movement away from the regional extremes of real estate feast and famine – and that is a very good thing.”
Related stories:
Edmonton market’s recovery to encounter significant speed bumps this year
Market performance retrospective
