The year is shaping up to be a busy one for real estate transactions in Edmonton, with a near 11-per-cent jump in the average price of a single-family home between January and February, alone.
And right now in Alberta, there are increasing signs deal-hungry investors, flush from cashing out in higher-priced markets in other parts of the country, are coming to buy. Even with the increase in prices, “it’s still very affordable compared with almost anywhere other than Saskatchewan and Manitoba,” Mr. Shearer said. “People are seeing that we’re at the beginning of our cycle, whereas maybe some other regions are at the end of their cycle.”
Investment dollars aren’t solely responsibly for the situation, of course. As of this year, some new buyers are scrambling to get into the market before further interest rate hikes. Supply is an issue. Immigration levels are increasing. And relative affordability, and increasing economic activity in Alberta, are factors adding to the ranks of those who will want to live and work in the province.
But on rising housing costs across the country, it feels almost too late. The Bank of Canada has identified investors as a major source of demand. A report from the central bank in January said the share of purchases by first-time home buyers has been declining since 2015 and “increased presence of investors in the housing market has contributed to strong demand.”
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The increase of land supply is the only way to suppress price