The Alberta Treasury Board and Finance's Chief Economist and Executive Director, Catherine Rothrock discusses the state of our province's economy as well as national & international indicatorss. Realtors want you to be pre-approved before you look at homes. 2020 REALTORS® Housing Forecast Be the first to hear leading industry experts predict the Edmonton and area's 2020 economic and real estate outlook. Halifax’s growing population is putting pressure on both the real estate market and rental market leading to home price increases. Check out our Complete Home Buyer’s Guide so we can walk you through the end-to-end process and get you ready to buy your new home! Non-core demand represents short-term investment, long-term investment, and recreational demand (i.e., homes not occupied full-time by the owner). A first-time homebuyer household earning $94,000 (the median Metro Edmonton household before-tax income) can get a $390,000 mortgage. Industrial real estate is doing well, especially in communities outside the city where available land and lower tax rates are helping to stimulate development. A client-focused real estate agent dedicated to get clients best return on their investment. The true ‘effective’ level of unemployment is higher than the ‘official’ number. The aggregate price of a home in Halifax is forecast to increase 1.75 per cent in 2020, rising to $323,800. 2020 Housing Forecast – Edmonton Event Centre Jan 15, 2020. As for the purpose-built rental market, vacancies are expected to trend lower in 2020 before increasing in 2021, when new rental market supply reaches completion. The lives of many people who are vulnerable, but didn’t know it, would be lost in this scenario. That’s more than enough for a first-time homebuyer to buy a benchmark $200,000 condo or a $400,000 house. Canadians who now work from home need more room to segregate workspace from living space within their homes. Other Canadian cities have experienced a decline in condo prices while house prices accelerated, but Metro Edmonton home values are relatively flat in all categories. Surprisingly, the increases in delinquencies are led by Ontario and British Columbia, and not Alberta. As the supply of more generous floor plans comes to the market, it may depress the values for small floor plan condos. Single-family home sales jumped 22.98% compared to August 2019 Pandemic real estate market: Housing sales up 12% in Calgary compared to last year – Sep 7, 2020 While home prices would fall in every region under Moody’s model, the … Buyers are looking for single-family homes and yards, which includes duplex and row-style townhomes. Prices will likely drop significantly in 2021, so a wait-and-see strategy is advisable. For a more thorough comparison of the Coronavirus Recession to the Great Recession and the Great Depression and their impacts on property prices, check out our recent article: “Should I sell my home today?”. READ: Fewer People = Less Demand : Easing Population Growth to Weigh on Housing, TD Bank. Several vaccines show promising results however, they are unlikely to be widely available until mid-2021. More than half (53%) of Albertans are still experiencing COVID-related disruption to their employment as of September. Our 2020 summer edition of the Housing Market Outlook report provides forecasts for Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal. Data indicates that more Canadians are missing their monthly payments, and it appears more Canadians are over-extending themselves. This report's home price data evaluates sales history between November 06 - December 04 and includes percent changes from the same 28-day period last year. With low oil prices and Coronavirus related international travel restrictions, we can expect very little foreign investment in Canadian real estate in the near future. It also includes short-term rentals, long-term rentals, and recreational property purchases. Pre-sales are purchases of unbuilt and completed brand-new homes from developers. The provinces would likely have to reimpose local restrictions and lockdowns. Given the current recession and a Wave 2 of infections, sellers may want to push ahead and sell during the pandemic because there is no guarantee that home prices will maintain current values over the next two years. In 2020, Halifax’s real estate demand will continue to be driven by strong population growth. The second wave is the last. (Previous week’s numbers are in brackets). Are you planning to Buy? Click on the button for the Alberta Report. Be the first to hear leading industry experts predict the Edmonton and area's 2020 economic and real estate outlook. To hide the illegal nature of funds, they are laundered in the real estate market. Also, lenders have tightened their borrowing guidelines. Ottawa, ON, September 16, 2019 – The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations – for the rest of 2019 and looking ahead to 2020. Real estate markets are local and in some Metro Edmonton submarkets, house prices have held steady while in other submarkets, values have dropped. Edmonton housing market to remain balanced in 2021, prices to increase 2%. Altus Group released its quarterly forecast for housing across Canada, and it predicts Edmonton’s market will struggle due to weak demand from lacklustre economic growth, in large part because of the pandemic. Unless banks change their lending policies, 2020 will drag down their mortgage qualifying income until mid-2023 (when they file their 2022 taxes). It's a great yearly event that provides various economic perspectives in regards to understanding housing in the Edmonton and greater Area Real Estate Markets including Fort Saskatchewan, Sherwood Park, St Albert, Leduc, … Savings-Equity: How much disposable after-tax income you’ve been able to squirrel away plus any equity you have in your existing home. Canadians continue to follow health policy guidance and wear masks and continue social distancing until enough people are vaccinated to provide herd immunity. While the Vancouver and Toronto real estate markets continue to lead Canadian cities in terms of investment and development prospects, every region has its own opportunities and challenges. On This Day (1996-2019) Highest temperature: 9.2 C (2005) Lowest temperature: -26.8 C (2000) Eye On Edmonton. I love this yearly event! CREA Updates Resale Housing Market Forecast. Edmonton’s home prices are very affordable. International travel restrictions will continue to make the short-term rental business difficult through to the end of 2021. Monthly Market Statistics Update Residential Unit Sales up 27.18% compared to November 2019. The City of Edmonton raised taxes almost 3% in 2020 and is likely going to raise property taxes to make up for the pandemic budget shortfall. The number of new residential listings is up year over year, increasing 14.75% from October 2019. The 90-day-plus delinquency rate for mortgages rose to 0.18 percent, an increase of 6.7 percent from last year. International travel restrictions will make many short-term rentals unprofitable for the foreseeable future. Market sentiment and government stimulus have led to price acceleration and record home purchases even though most economic fundamentals have faltered. Although the CMHC can help Canadians via Canadian lenders by refinancing mortgages, it will not help overextended Canadians who chose to finance their homes with private mortgage lenders. Statistics in August, show that 21 percent of Edmonton mortgage holders were still unable to make their regular mortgage payments. 2. I attended the 2020 Edmonton Realtors Association Housing and Economic Forecast this past Wednesday morning. Despite lower interest rates, due to the Coronavirus' impacts, short-term core demand for homes will likely be much lower as we head into 2021. Home sellers may take heart that recently, despite the pandemic, homes have been holding their value. Prices are forecast to stabilize between 2019 and 2020, with sales expected to regain momentum in the longer term. Let’s take a closer look at some of the Edmonton housing market stats for August 2020. Incoming RAE Board of Directors Chair, Jennifer Lucas delivers 2020 predictions and examines how the real estate industry impacts local economies. Over the past few years, rents rose faster than incomes, so first-time buyers struggled to come up with down payments. Metro Edmonton apartment values have been trending downward over the long-run, but recently they’ve had a boost. They may be projecting lower values in the future, but: CMHC sells insurance to banks to help limit their losses if a mortgage goes bad. Hello house hunters! Nevertheless, supply has been trending upward and the market may soon be balanced. This reduces upward pressure on Metro Edmonton home prices. For the past 7 days: New Listings: 442 ... 2020. Alberta is struggling to contain the second wave and we expect localized restrictions and lockdowns. They will help explain why several forecasters are anticipating price drops. After working through the 2019 housing market and researching all the recent market updates we are excited to present the 2020 housing forecast. Be the first to hear leading industry experts predict the Edmonton and area's 2020 economic and real estate outlook. realtor was caught with hundreds of thousands of dollars in her closet at home. The recent drop marks the lowest prices have been in six years when Edmonton’s benchmark was a comparable $314,500 (2013). At Mortgage Sandbox, we provide a price range rather than attempting a single prediction because many real estate risks can impact prices. Popular sentiment can be volatile and easily influenced by the latest headlines. Existing homeowners have benefited from stable values while they pay down their mortgages so that today they have more home equity to use when buying a bigger home. The five key factors are core demand, non-core demand, government policy, supply, and popular sentiment. Existing sales: Existing home sales are sales of ‘used homes.’ They are homes owned by individuals who sell them to upgrade, move for work, or some other reason. Other presenters include the City of Edmonton, Government of Alberta, and Edmonton Global. Condos are selling well but they haven’t experienced the pandemic boost in interest that other property types have. With lower prices, homebuyers who waited have been rewarded, and Coronavirus containment efforts will push prices further downward. CMHC, the government housing agency, predicts a ‘peak-to-trough’ drop of between 6% and 19%. Vice President of Strategy & Innovation, Edmonton Global, President & CEO, REALTORS® Association of Edmonton, Chair, REALTORS® Association of Edmonton Board of Directors. Rising supply releases the upward pressure on prices caused by demand. The government has now unwound many of the programs supporting home values through the recession. The ‘official’ Alberta unemployment figures unemployed people who are not looking for work (e.g., people who work in industries that have not fully reopened like tourism or hospitality). Learn about how we’re transforming Edmonton through The City Plan - our strategic direction to make Edmonton a healthy, urban, climate resilient city that supports a prosperous region. At Mortgage Sandbox, we have created a five-factor framework for gathering information and performing our market analysis. Property taxes are factored into your mortgage affordability calculations, so an increase in taxes lowers home buying budgets. Altus Group released its quarterly forecast for housing across Canada, and it predicts Edmonton’s market will struggle due to weak demand from lacklustre economic growth, in large part because of the pandemic. Howe Institute, Nov 12), Canada's housing squeeze: Buyers who want to move up are being 'handcuffed' by their hard-to-sell condos (Financial Post, Nov 17), The Effect of COVID-19 on CMHC’s Housing Market Assessments - Concerns about long-term stability of the housing market (CMHC, Oct 8), COVID-19: Second Wave Brings Uncertainty on Household Debt (CMHC, Nov 10), there is a low risk of a price correction in Edmonton, the median Metro Edmonton household before-tax income, uncertainty in the Canadian real estate market, Read Report: 5-Factors Driving Alberta Prices, Fewer People = Less Demand : Easing Population Growth to Weigh on Housing, TD Bank, More than half (53%) of Albertans are still experiencing COVID-related disruption to their employment as of September, Brendan LaCerda, a Senior Economist with Moody’s Analytics, estimates that each 1% rise in unemployment results in a 4% drop in home prices, The City of Edmonton raised taxes almost 3%, Coronavirus related international travel restrictions, estimated 2,400 short-term rentals in Edmonton, international travel to Canada has dropped 98 percent, In 2015, a B.C. 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