Further Bank of Canada interest-rate cuts will not woo more prospective Edmonton homebuyers off the sidelines, according to a new Royal LePage report.

Tom Shearer, broker and owner at Royal LePage Noralta Real Estate, said additional BoC rate cut will not materially affect the number of active buyers. But Shearer believes that those who are already active will have greater buying power if more cuts occur.

Shearer’s prediction could implications for the condominium market. While most major Canadian residential markets have taken price hits, Edmonton’s valuations have continued to increase.

“The first half of the year has been very strong in terms of sales activity, and I expect we will even surpass the high volume of transactions recorded during the height of the pandemic real estate boom,” he said. “In fact, were it not for the constraints of extremely low supply, we’d likely see even more deals getting done

“Right now, every home to hit the market that’s well-maintained and appropriately-priced is getting scooped up. Essentially, the only properties that are languishing are overpriced or still in the pre-construction phase.” 

Edmonton’s median condo price rose 4.2% year-over-year to $201,600 in the second quarter. The median price of a detached single-family home in the Alberta capital incrased 5.5% year-over-year to $497,200.

“There is something for everyone in Edmonton, regardless of the area, size, price point or type of property you are looking for,” said Shearer. “Newcomers to the province – both from inter-provincial migration and international immigration – continue to drive demand and price appreciation in the city centre and surrounding regions.

“And, employment opportunities in the oil and gas industry are not the only reason people are choosing to live in the area. It’s a combination of factors, including the lifestyle, affordability and access to nature Edmonton has to offer.” 

The BoC is widely expected to introduce another rate cut in the next week. The central bank decreased it overnight lending rate to 4.75% from 5% in early June following a series of holds and rapid increases.