Edmonton realtors expect the city’s bullish housing market to continue into 2015 despite dropping oil prices.
Low unemployment and a strong economy will push the values of homes up by four per cent with the average residential price climbing from $374,000 in 2014 to $389,000 in 2015.
With oil selling close to $60 US per barrel many expect the oil industry to slow down, but realtors say that won't have a large impact on the housing market.
“We’ve got away from being solely dependent on oil in the Edmonton market, with $5 1/2 billion in infrastructure.construction projects going along in the downtown core alone,” said Greg Steele, president of the Realtors Association of Edmonton.
“That’ll be sustained for the next three to five years."
Steele said the Edmonton market is far from saturated, despite the rapid growth in downtown condos and single family homes on the city’s outskirts.
“Right now we’re taking everything,” he said. “We’re like a sponge. Everything being built is being sold.”
While homes priced below $400,000 make up 65 per cent of the market, luxury home sales have been growing for the past three years.
Realtors reported a 29 per cent increase in sales over $1 million in 2014 compared to last year.