Existing Housing Market

The residential sales volume on the Edmonton Real Estate Board MLS¨ system in 1999 was $1.6 billion, a 2.7% increase over 1998. At mid-year 2000, the overall residential sales volume has increased 10% in comparison to the same period last year.

The average sale price in 1999 for a single-family dwelling was $133,442, 4% above the 1998 level. The average single-family house price is expected to increase a further 6% in 2000 under sellersÕ market conditions. At mid-year 2000, the average sale price has increased by 5% to $139,690.

The number of listed properties has been steadily declining since 1996, and less supply translates into a sellers market. Because of stronger demand, CMHC expects sales volume in 2000 to establish a new record on the MLS¨. This will cause a shortage of listings, resulting in a further swing towards a sellers market.

New Housing Market

Construction of new single detached homes within the City of Edmonton in 1999 was virtually at the same level as evident in 1998 of about 2,000 units. There was a 13% increase in total units, which includes multiple family dwellings. The City of Edmonton is forecasting an average of 3,040 total housing starts over the next five years.

The average new home price in the Edmonton CMA increased by 3.1% during 1999 and at year-end; the average new home price was $185,000. The number of households has been steadily increasing in the City of Edmonton. In the last three years, over 20,000 households have been added to the Edmonton marketplace, which represents an average growth rate of 2.8% per year. The latest 1999 statistics reveal that 57% of the housing units are owned versus rented.