Single family dwelling resales were up 225 per cent for the month of June compared to June of last year, says a report by the St. Albert Economic Development.
Single-family housing starts have been consistently outpacing the past three years of development since February, including a massive spike of growth in April with more than 30 starts, the same report indicates.
Resales of single-family units are double or even triple last year’s sales for the same time period. While important to note that the pandemic had an impact on last year, sales are also outpacing 2019’s resales handily as well.
“What we have heard from home builders and developers is that the surge in new-home construction this year is due to several factors,” said Mike Erickson, acting director of Economic Development, in an interview with The Gazette.
“[We are seeing] low interest rates and pent-up demand, as well as an increasing trend toward more spacious homes and homes in secondary markets, possibly due to the increased number of people working from home.”
Shandrie Lewis, owner and broker of the local Re/Max office, agrees.
“Interest rates are phenomenally low. As long as buyers qualify and have a down payment, it’s a great time to buy,” she said.
“Savings are up all over Canada,” said Lewis. “People have had time to live in their homes and realize that maybe they need more space or that they want to downsize.”
Single-family resales peaked in April of this year, when 143 housing units in St. Albert sold, for an average of $507,220. In April of last year, only 44 houses sold, for an average of $447,597. In 2019, the number was only 66, with an average cost of $459,601.
“Ninety-two per cent of my agents are up in sales over last year,” said Lewis. “I’m very proud.”
Year-to-date permits indicate that the city has issued 113 single-family housing permits between January and June 21. This number dwarfs the 40 permits for single-family units for the same time period in 2020.
“Residential development contributes significantly to the local economy, proving considerable local investment as well as employment to professionals throughout the land development industry, such as home builders, construction contractors, planners, surveyors, architects, engineers, lawyers, lenders, real-estate professionals, and utility companies,” said Erickson.
Across the board, St. Albert is benefiting greatly from this surge in housing.
“An increase in houses is typically accompanied by an increase in population, and population growth is a key economic indicator.
"Consistent, strong population growth sends a signal to investors, developers, and new business that St. Albert’s is prospering. The retail sector, in particular, closely monitors population growth in a market before choosing to locate or expand,” said Erickson.
