Economic factors preventing Edmontonians from home ownership: CMHC

Canada

Edmonton continues to be a buyers’ market as the city and province continue to recover from the 2014 oil price crash and recession.The Canada Mortgage and Housing Corporation’s (CMHC) Thursday housing market assessment said Edmonton’s overall degree of vulnerability remains moderate due to overbuilding.Other factors, such as market overheating, price acceleration and price overvaluation, remain low according to the CMHC.Story continues below

“Unemployment rates, while they have recovered in Edmonton, are still above their pre-recession levels and this is putting pressure on individuals moving into home ownership,” said James Cuddy, CMHC senior analyst.“At the same time, personal disposable income has also followed a similar downward trend as Calgary. And higher interest rates are Canada-wide. These factors are driving markets across Alberta.”READ MORE: Selling your home? Prepare to wait, say Edmonton realtorsThe CMHC dropped the vulnerability of overbuilding in Edmonton from high in Oct. 2018 to moderate as a result of continuing high inventory in unsold homes and increased demand in the rental market.WATCH: Over-supply of real estate means slow sales for Edmonton sellers (2018)

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