Housing Prices in Edmonton Soar

Another report was released by Royal LePage yesterday, and shows that the fourth quarter of 2005 was remarkably strong, with Bungalows showing the largest year over year increase. Edmonton had the third largest increase in the country after Victoria and just slightly behind Calgary. Rising demand in Edmonton and Calgary lead to low inventory levels and increased prices.

"High energy prices and resource development in Northern Alberta continued to drive a strong housing market in Edmonton, with all three housing types experiencing substantial price appreciations in the quarter. A tight labour market leading to high income growth and corresponding consumer spending has helped stimulate much of the growth in the housing market."

"The country's economy is operating at full capacity and isexpected to do so through 2007. A tight labour market will mean highersalaries and more money in people's pockets. That money will continue to findits way into housing, as the family home continues to be one of the soundestlong term investments a Canadian can make. Balancing this, we will seemoderately higher interest rates to thwart inflation, which will help keep alid on house price increases in most of the country."

Full article here.