With an unusually high amount of inventory and fairly slow sales, 2010 was a flat year for property values in St. Albert.
"It's good news for people in St. Albert in that their houses are worth roughly the same that they were last year at this point," said James Mabey, a realtor with Sutton Nor-Vista.
According to the Realtors Association of Edmonton, the average price of a single-family home in St. Albert last month was $448,000, a figure unchanged from December 2009.
Early in the year, incentives announced by the Canada Mortgage and Housing Corporation (CMHC) pushed many homeowners toward buying earlier than normal, which ultimately made for an atypical year for sales, Mabey said.
Where April and May are usually the busiest months, Mabey said, January, February and March saw the most activity last year.
This sudden jump resulted in a six per cent gain in property values, which then eroded through the balance of the year.
"That was sort of par for the course through most of the year. We had an awful lot of stuff sitting on the market and a lot less purchasing activity happening," he said.
While the volume of sales was down 30 per cent, Mabey said there was still significant turnover in some of the city's older neighbourhoods like Sturgeon Heights and Grandin where lower price points ($300,000 to $350,000) are increasingly catching the eye of young families.
Maybe said there is a shortage of homes in the $300,000 to $350,000 range, which is considered "affordable housing" in St. Albert. Aside from a small selection of apartment-style condos, mostly in Akinsdale, the city has very little in the $150,000 to $200,000 range, he said.
With a heavier mix of homes in the upper end of the marketplace, Mabey said it isn't unusual to see St. Albert's average price point fall between $400,000 and $440,000.
"That doesn't mean that people who are looking to get into St. Albert can't find a home for $320,000 and $350,000. And for a similar home in north Edmonton, really they're not paying that much of a different price," Mabey said.
He anticipates in 2011 there will be an increase in demand among seniors looking to move from single-family homes into more affordable housing options.
"Not assisted living, but a bungalow in a complex where they don't have to do the yard maintenance," he said. "People's needs are changing."
Looking forward
Richard Goatcher, a senior market analyst with the CMHC in Edmonton said 2011 will look a lot like 2010 in terms of new and existing housing markets.
"I think if we were to speak in terms of general terms that for both the new housing market and the existing housing market, activity levels and pricing levels in 2011 will not look markedly different than what they did in 2010," he said.
Compared to many of the neighbourhoods in Edmonton, Mabey said there is good value to be found in St. Albert.
"There is of course the increased tax burden to some degree but it's a bit overstated in my opinion and anybody who lives in St. Albert and had their streets plowed is doing a lot better than some of those neighbourhoods in Edmonton," he said.
"You get a lot for what you're paying for in St. Albert."
