Edmonton’s housing market will remain stable despite the recent mortgage rate increase, reports the Realtors Association of Edmonton.

“Buyers applying for a mortgage now may have to buy a slightly less expensive property than before because their qualification amount may be lower,” says president, Darrell Cook. “In the short term, any reduction in the number of buyers will be made up by the potential buyers becoming more motivated to buy before their pre-approval period ends.”

The average condominium price in Edmonton was up 0.9 per cent in August, compared to the previous month, reaching $244,675. In comparison to August 2012, condo prices were up 3.8 per cent.

“Our market continues to exhibit strong fundamentals,” says Cook. “Rental vacancy rates are low at about 1.2 per cent, new home starts are up and weekly take-home pay rates are the highest in Canada. The upward pressure on housing prices will be moderated by the seasonal decreases as we approach winter.”

The overall residential sales listing in August was 65 per cent. The number of available homes on the Edmonton MLS System was down from July, but the total value of MLS sales year-to-date is the highest it has been in five years.