Calgary to lean towards buyers in 2020 with more first-time home buyers entering the market than ever
The Calgary housing market will lean toward buyers in 2020 with a zero percent residential sale price expectation. This is dependent on a number of different factors, including the province’s economy and the fate of the Keystone Pipeline. The city’s employment rate and overall economy will have the greatest impact on the housing market, along with strong population growth.
Calgary’s buyer’s market is due to its economy and high unemployment rate which is expected to continue into 2020 should major changes not be made. Housing affordability isn’t a concern due to low condo prices allowing buyers to easily enter the market. Despite the high unemployment rate, the city’s population is increasing due to residents from other parts of Alberta moving to the city.
Condominiums and two-story detached homes are the most popular properties in Calgary while Coventry Hills, Evergreen and Northeast Calgary are expected to be the hottest markets of next year because of their affordability. First-time and move-up buyers are expected to drive demand in 2020, with more first-timers entering into the market compared to past years, due to the city’s overall younger population compared to the rest of Canada.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.
As more Canadians have adjusted to the mortgage stress test and older Millennials move into their peak earning years, it is anticipated that they will drive the market in 2020, particularly single Millennials and young couples. A recent Leger survey conducted by RE/MAX found that more than half (51 per cent) of Canadians are considering buying a property in the next five years, especially those under the age of 45.
Click to read the full RE/MAX 2020 Housing Market Outlook Report.