Edmonton’s housing market will likely experience an increase in prices after the COVID pandemic, but nothing dramatic. This is an opinion based solely on what I’ve experience working as a Realtor during the pandemic as well as a review of easily accessible Realtor data. As of right now many sellers are holding off on listing their homes but not nearly as many buyers. This shift in demand and relatively static supply is driving prices down.
Edmonton Job Loses
A significant portion of Edmonton’s population is currently laid off or worried about being laid off. Almost all these lay offs are thanks to the COVID Pandemic. Many of these individuals were planning on purchasing a house this summer. In the eyes of future homeowners, buying a home in Edmonton has gone from a relatively stable long-term investment to a high-risk decision. Until things are back to normal this is likely the most significant factor affecting the demand for real estate in Edmonton.
Timing is Everything
Depending on how long the COVID Pandemic lasts when life is back to a relative normalcy, we may see a large, all at once, increase in the demand for Real Estate. Timing is important in my opinion as most buyers, no matter what, want to purchase in the summer. If we do not see a removal of restrictions before August, I believe we will not see a normal spring market bump in prices. If things settle down in June or early July, we may see an increase Real Estate prices as demand picks up before the weather changes.
The Good News
In comparison to major systemic market lows in the past I do not see COVID-19 having any long-term effects on Edmonton’s Real Estate market. The COVID Pandemic will have similar effects on the economy as a natural disaster. I hold this opinion as there is no significant human error involved in COVID, unlike the 2008 housing crisis or other significant economic woes of the past. When life gets back to normal, whether that happens this summer or later in the year, the economy will likely move back to pre-COVID levels of activity. If you have any questions about how COVID will affect your Real Estate in Edmonton Contact Me!