Buyer’s market expected in 2020, prices to drop 2%
The St. John’s housing market will continue to favour buyers in 2020, according to the 2020 RE/MAX Housing Market Outlook Report. The sale price expectation for St. John’s Metro in 2020 is a decline of two per cent.
While the number of sales increased year over year, the average home price dropped 1.8 per cent from 2018 to 2019. Increased consumer confidence is bolstering the market after a multi-year decline, however buyer’s market conditions are expected to persist in 2020.
Affordability is always a topic of conversation, but the St. John’s housing market offers greater affordability than many other major cities across the Canada. Consumer confidence is expected to stabilize the market, particularly with the flurry of activity at the low end of the market and some offshore oil projects. However, an increasingly aging population, combined with migration to other parts of Canada, is bound to impact the St. John’s housing market at some point in the future.
Move-up and first-time buyers are expected to drive market activity in 2020, with the Galway subdivision expected to be in highest demand.
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, according to the RE/MAX 2020 Housing Market Outlook Report.
In Atlantic Canada, Halifax and Saint John have experienced solid price appreciation of six and five per cent, respectively. Affordability continues to attract many buyers in the region, most of whom are buying single-detached homes. At the same time, the region’s condominium market is being driven by retirees. Conversely, the market in St. John’s is expected to recover in 2020, with increased consumer confidence expected to stabilize the market. However, the city’s aging population and high rate of outbound migration is expected to have an impact on housing market activity at some point.