May 19, 2010, Frank Landry, Edmonton Sun

Now might be a good time to start looking for that home.

Resale home prices are expected to jump next year to levels not seen since the 2007 boom, the Canada Mortgage and Housing Corp. says in its latest housing market outlook for Edmonton.

The average home is expected to sell for $333,000 this year, a spike of nearly 4% from 2009.

Home values are expected to increase another 3.6% in 2010, when the average property will fetch a record $345,000, says the federal government agency.

In 2007, at the height of the boom, the average Edmonton home sold for $338,636.

The figures included single family units and condos.

“We’re looking at a market right now that is showing absolute signs of recovery,” said Larry Westergard, president of the Realtors Association of Edmonton.

“So we’ve turned that corner.

“If you’re a seller or a buyer, it’s a good time to start making some decisions.”

Average prices have been rising because of a balanced market and more people looking to move into larger homes, the CMHC says in a report released Wednesday.

It says houses worth over $500,000 and condos worth over $300,000 have been a hot commodity – “indicative of increased move-up buyer activity.”

While prices of resale homes will go up, the CMHC categorizes the increases as modest. It says rising mortgage rates and more stringent qualifying conditions will contain prices.

Five-year fixed mortgages are expected to be in the range of 4.2% to 6.7% by next year.

“We’re not going to move back into those sellers’ market conditions we saw back in 2007,” said Lai Sing Louie, with CMHC.

That’s still a turnaround from last year, when the value of resale homes fell 3.2% in the Edmonton area, according to the federal agency.

As the economy starts to pick up, the CMHC also says apartment vacancy rates will drop this year to 4% from 4.5% last fall.

Vacancy rates hovered between 1% and 2% between 2006 and 2007.

The agency says rents are expected to remain relatively flat this year before slowly starting to increase in 2011.

The average two-bedroom apartment rented for $1015 in 2009 and about $1000 in 2010. The rate is expected to rise to $1030 by October of next year.