Buyer’s market expected in 2020, first-time and foreign buyers to drive market
The Edmonton housing market will lean toward buyers in 2020 with the average residential sale price expected to drop by one per cent. This is due to average values declining, at least until the oversupply of inventory is absorbed. However, some areas and product types are seeing a five percent increase.
Some of the most popular property types in Edmonton include two-story detached homes, luxury properties, infill and “skinny homes”. It is expected that the city’s economy will improve when the government stimulates job creation and when a federal housing policy is implemented that will benefit all Canadian home buyers.
Many new and larger developments in the downtown, Oliver and Strathcona neighborhoods, many of which are integrated with expanding the LRT network, are expected to impact the market in 2020.
Strathcona and Glenora will continue to be very popular neighborhoods based on the amount of infill and new construction projects that are bringing a variety of pricing and housing options to buyers. Ritchie and Bonnie Doon will also continue to see high demand as the LRT network opens, giving more transit and lifestyle options to those in Bonnie Doon.
First-time and foreign buyers are expected to drive demand in 2020. Foreign buyers who previously flocked to Vancouver are now looking at Edmonton for growth in the coming years.
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.