2020 Market Forecast
2020 Housing forecast!
Hello house hunters! We hope all of you are as excited for 2020 as we are. After working through the 2019 housing market and researching all the recent market updates we are excited to present the 2020 housing forecast. As many of you know we have been experiencing a strong buyer’s market in Edmonton for quite some time. Sellers are having a hard time and good qualified buyers are hard to find. We are excited to announce we strongly believe our real estate market is now changing. Here are some exciting facts from Re/Max Canada:
- Average home price expected to rise by 3.7% next year
- Increased consumer confidence could be a key factor affecting the housing market in 2020
- 51% of Canadians are considering a home purchase in the next five years, up from 36% at the same time last year
Only two in 10 Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019
This is the market of opportunity. Since we believe our prices will now start to rise there will not be a better time to buy for generations to come. Unfortunately, it is impossible to predict exactly when the average home price will change. There is a chance that we may see prices drop a percent. However, saying this the “long term” benefits do not change in investing now. Inevitably, Edmonton’s average home price must increase.
In recent history it has been hard for Albertans to afford housing. With our economy, mortgage stress test and unemployment rates it’s safe to say we aren’t “booming” right now. The cities economy will improve when the government stimulates job creation. It is no doubt that first-time and foreign buyers are expected to drive the demand in 2020. Previously foreign buyers were looking to Vancouver, now they have their sights on Edmonton. Economic losses in oil and gas are expected to be balanced by construction, infostructure and jobs.
New Home Construction and Development
Edmonton is continuing to build and grow. Builders and developers are implementing many consumer invectives; prices are low. We are seeing some extremely well priced homes. For example, some builders are offering detached single-family homes with double attached garages for $380,000. We are seeing much of the younger generation wanting newer homes. They want a trendy “up-to-date” homes with no work. Unfortunately, we are seeing a negative effect on re-sale. Since Edmonton’s general home prices have been slowly dropping and builders are consistently releasing better prices. We are experiencing many people who purchased new homes in the past 5 years who are now wanting to sell. If you fall into this category it is important to set realistic selling expectations. Most of the time these homes have depreciated in the past few years. However, there are ways to better your chances of increased property value. Leaving add-ons like deck, landscaping, basement development and small upgrades up to your self are mostly, beneficial. In all cases it is important to talk to one us before making any decision. Every home purchase is different.
Through the past years we have been testing and studying various systems, assistants and programs, We have spent the dollars and taken the time through generations of real estate professionals so our clients can be sure they are receiving the best quality of real estate services. We understand there are thousands of REALTORS and teams in Edmonton. In our changing world it’s extremely important to have a strong online presence and understanding. As well as, having generations of experience in all real estate dealings. When it is time for your next real estate transaction, we will be there for you every step of the way. Creating long lasting business relationships and friendships is our favorite part of this business because, in the end, people buy from people.
In conclusion we are thrilled to help Edmontonian’s with all their real estate needs in 2020. Thank you for the continued support and business.
All the best in 2020
Ken and Ross; your Edmonton House Hunters