What Is The Average House Appreciation Rate In Canada? In Alberta? In Edmonton?
Whether you’re buying a home for your family or purchasing a home as an investment property, the appreciation rate of homes in Canada is an important statistic for many Canadian homeowners.
Understanding the average house appreciation rate in Canada, as well as in Alberta and Edmonton specifically, can help inform decisions about real estate purchases. In Canada, the Teranet-National Bank House Price Index is the most commonly used measure of house price appreciation.
This index uses many sources for data and measures the change in prices of residential houses in 11 major cities in Canada, including Toronto, Vancouver, and Edmonton. Additionally, the Case-Shiller Home Price Index is the most widely used measure of house price appreciation in the United States, which can also affect the Canadian market. By understanding these indices, Canadians can gain insight into the historical real estate appreciation rate and home prices in Canada.
What Is The Average House Appreciation Rate In Canada?
The average house appreciation rate in Canada is a complex topic that depends on the market and area. As of July 2023, the housing market is up by around 2.6% according to the Teranet-National Bank House Price Index.
When looking at the average house appreciation rate in Canada, it is important to consider the various housing statistics, such as the Canadian Housing Price Index – or the New Housing Price Index (NHPI) – the Teranet House Price Index, the Canadian Real Estate Association, the Case-Shiller Index Canada, and Statistics Canada. These indices provide a historical view of house appreciation rate in Canada and can be used to compare different markets and areas.
House Appreciation Rates in Alberta
In Alberta, the trend for growth is currently slightly down, with Edmonton at around -3% and Calgary at around -0.8%, according to the Teranet-National Bank House Price Index. While this may not sound ideal at first, it’s important to note that over the longer term, appreciation rates have been rising steadily and a small, temporary dip in home prices can actually represent a good deal for new home buyers – it’s good to buy when the price is lower!
The current housing market trend in Alberta, specifically in Edmonton and Calgary, is showing signs of recovery. Since the peak in Spring 2022, data shows house prices in the Calgary area have fallen significantly, but are now on an upward trend, with sales increasing on a month-over-month basis. In Edmonton, the real estate market has also seen an increase in both sales and the average home price.
Across Canada, monthly average housing prices show a decrease in many provinces, but Alberta’s forecast for 2023 is expected to surpass pre-pandemic housing sales due to an increase in population – especially with new residential houses. Overall, the outlook in Alberta seems to be positive and on an upward trajectory.
House Appreciation Rates in Edmonton
As stated above, In Edmonton, house appreciation rates are slightly down from the provincial average, at around -3% according to the Teranet-National Bank House Price Index. Despite this slight dip, over the longer term appreciation rates have been steadily increasing and the Edmonton market is still considered to provide good value for new homebuyers.
Edmonton’s housing market is also more stable than some of the other major cities in Canada, such as Toronto and Vancouver, which have seen wider fluctuations in appreciation rates over the same time period. Edmonton’s average home price is also more affordable than other major cities in Canada, making it an attractive option for those looking to invest in real estate or buy new residential houses.
Canadian Housing Statistics
Overall, understanding the house appreciation rate, whether it’s in Canada, Alberta, or Edmonton can help you make an informed decision about your real estate purchase. A positive appreciation rate indicates that a home has increased in value over time – this is good news for those who are looking to buy a home as an investment property.
On the other hand, a negative or stagnant appreciation rate over the long term indicates that you’re looking at a bad housing market. That being said, short-term fluctuations are perfectly normal and can be caused by any number of things, such as an exceptional event like the COVID-19 pandemic, all the way down to simple factors like seasonal effects (fewer people tend to look for houses in Canada in the winter, for example.)
Checking for long consecutive periods of negative or inactive changes is a good way to spot a bad market. A one-off or temporary dip to the appreciation rate might even present a good opportunity to buy.
The average house appreciation rate in Canada depends on the region and the current housing market. While it can be difficult to predict exact numbers, understanding the historical real estate appreciation rate in Canada, as well as in Alberta and Edmonton specifically, is key for making informed decisions and understanding price changes when it comes to buying or selling a home.
The New Housing Price Index, the Teranet House Price Index, the CREA, and the Case-Shiller Index can all be used to track house appreciation rate in Canada. By understanding these indices, you can gain insight into the current and historical real estate appreciation rate in Canada.
Part of the reason why real estate investments are regarded as a safe investment is due to the fact that Canada’s real estate market has generally exhibited a steady long-term appreciation in house prices over the past 120 years, with fluctuations driven by various economic, demographic, and housing market factors.
Throughout the late 20th century and early 21st century, Canada witnessed several notable periods of house price growth, interspersed with occasional slowdowns or corrections. Notably, there was a surge in prices during the late 1970s and early 1980s, followed by a decline in the late 1980s and early 1990s. Subsequently, from the mid-1990s to the early 2000s, house prices began to rise again, culminating in a significant boom in the 2000s, particularly leading up to the global financial crisis in 2008.
Following the 2008 financial crisis, Canada’s housing market experienced a robust rebound, with house prices notably increasing, especially in major urban centers like Vancouver and Toronto. However, this growth also raised concerns about the possibility of a housing bubble and challenges regarding affordability in these cities.
It is important to acknowledge that house price trends can vary significantly across different regions in Canada, with some areas experiencing more pronounced fluctuations than others. Additionally, local economic conditions, population growth, interest rates, government policies, and various other factors can exert influence on house prices over time.
In contrast to some other regions in Canada, Edmonton’s real estate market has exhibited a reputation for being “Steady Eddy” due to its relatively less pronounced fluctuations in house prices over the years. While the country experienced significant booms and corrections, Edmonton’s housing market has shown a consistent and steady trajectory. This stability can be attributed to a combination of factors, including a diverse economy, steady population growth, and a well-balanced housing market.
Despite not witnessing the same soaring price spikes seen in major urban centers like Vancouver and Toronto, Edmonton’s real estate has maintained its appeal to both buyers and investors seeking a more stable and predictable housing market. The city’s emphasis on affordability, along with a well-regulated housing sector, has contributed to its reputation as a reliable and less volatile real estate market within Canada.
As with any housing market, various factors can influence Edmonton’s real estate prices over time, but its overall history of steady appreciation with minimal extreme fluctuations has earned it the nickname “Steady Eddy” among real estate enthusiasts and industry professionals. By understanding the trends and fluctuations in house appreciation rates, buyers and sellers can make informed decisions when it comes to their real estate investments.
About the Author:
At Sterling Homes, our mission is to provide the opportunity for affordable homeownership without compromise. Over the last 70 years, Sterling Edmonton has quickly become one of Edmonton’s most popular builders. We bring more than seven decades worth of exceptional customer service, superior design and unparalleled craftsmanship to the greater Edmonton area. As a member of the Qualico Group, Sterling Homes focuses on greater Edmonton’s finest family communities, while being able to offer some of the region’s most family friendly prices thanks to volume purchasing power for materials, trades and land. This has not only made Sterling one of Edmonton’s bestselling, move-up builders, but also one of the industry’s most respected home providers. It is through our uncompromising commitment to our customers that we proudly deliver the Sterling Advantage – that’s why each and every home we build includes a 10-year home warranty, a completion guarantee and new home warranty excellence rating. Our Advantage is our pledge that, when you build your dream home with Sterling, we will deliver a timely, well-built home you’re sure to enjoy for years to come.
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