Economic forecasts heading into 2021


By Paul Cashman

What lies ahead in 2021 for employment, residential real estate, and economic output? Here’s what the experts are saying – with the caveat that no one expected 2020 would bring an oil price war that hammered Alberta’s energy sector and then combined with a pandemic to cause the largest annual economic contraction in Alberta’s modern-day history.

Economic Growth

Forecasts for the coming year show some economic light after a gloomy 2020.
(Mila Emilivna on Unspash)

Forecasts for the coming year show some economic light after a gloomy 2020.
(Mila Emilivna on Unspash)

Employment

Real estate

  • Remax expects Edmonton home prices to rise 2% in 2021 after a 1% increase over the last year. Young couples looking for a property with a yard – houses, duplexes, and townhomes – are driving the move-up market.
  • Altus Group predicts Edmonton’s market will struggle in 2021 with a warning that recent sales reflect pent-up demand rather than underlying demographics. Average prices are expected to fall but the forecast does not include a target percentage. Home starts will also decline, especially in the condominium sector.
  • Royal LePage expects Edmonton home prices to buck regional economic drag with aggregate home prices gaining 1.5% but lagging behind a 5.5% national gain.