What's Ahead forGreater Edmonton Real Estate in 2019

What’s ahead for Real Estate in 2019?

A record-high number of homes for sale made Edmonton’s real estate market challenging for                                  buyers and sellers in 2018 and the Realtors Association of Edmonton predicts further drops in                                sales and average prices in 2019.

Association chair Michael Brodrick said 2018 was the worst he’s seen the market in his 18                                        years in the business as a result of rising interest rates, a struggling Alberta economy, and new                                      federal mortgage stress test rules that tighten how much buyers can borrow.

“The market is tough, period,” Brodrick said to media Wednesday morning during the                                    association’s forecast seminar. “Sellers have to be patient. Buyers have to be patient.  It’s a                                          great time to buy because of the inventory level but it’s also a challenging time  to buy                                          because of the difficulty in being able to qualify.”

The city saw a record 10,000 homes on the market at the end of June 2018 with properties                                            taking longer to sell. Average time on the market in 2018 rose to 62 days from 59.

The abundance of supply and decrease in demand has created a downward pressure on                                      average prices that is expected to continue, Brodrick said.

Single-family and duplex home sales should remain stable throughout 2019 with only                                                    slight declines in average price and units sold. The average price of a single-family home                                            is anticipated to be $428,950, down from $434,028 in 2018. A total of 15,519 homes were                                        sold throughout 2018, a drop in 5.57 percent from 2017.

But the association believes the struggling condo market will take another big hit with                                                    an anticipated 2.06 per cent drop in units sold. Just shy of 4,000 condos were sold in                                                      2018,  the lowest in more than a decade.

Average condo prices in 2018 hit a five-year low decreasing 4.9 per cent and are                                                    expected  to drop a further 1.63 per cent to $232,161, according to the forecast.

There are a number of factors associated with the falling market, said Brodrick,                                                  including recent hits to the energy sector.

“Things that are happening, or more likely not happening in Alberta, are affecting                                          everybody,  realtors included,” he said. “We’re here to talk about the  housing market,                                                  but we’re part of  the bigger overall picture.”

Edmonton chief economist John Rose said he agrees with the 2019 forecast, only                                                      seeing major economic improvements toward the end of 2019 — but not as a result of                                                    a booming energy industry.

“We’re just not going to see a significant recovery in investment levels related to the                                              energy sector,”  he said. “But by the end of 2019, I think we should be able to say the                                                  housing market has stabilized.”

Part of the reason for this, Rose predicts, is a stabilizing economy and interest rates —                                                  with the Bank of Canada deciding Wednesday to maintain the benchmark at 1.75 per cent.

“It’s going to get a lot of people off the fence. A lot of those uncertainties have gone away                                             so you’ll see people moving into the housing market,” he said.

As for potential buyers and sellers in 2019, Brodrick said there isn’t an immediate cause                                                for concern, but patience is the key in this type of market.

“It’s not that nothing’s selling. Properties are moving … just not as quickly,”he  said.                                         “Things are going to take some time so people need to be willing to build that time into                                          their plan.”

Realtors Association of Edmonton 2019 Forecast : 

Single-family average selling price

 

-1.17%

Single-family unit sales

 

-1.31%

Single-family inventory

 

1.92%

Condo average selling price

 

-1.63%

Condo unit sales

 

-2.06%

Condo inventory

 

1.83%

Duplex/rowhouse average selling price 

 

-0.66%

Duplex/rowhouse unit sales

 

-0.78%

Duplex/rowhouse inventory

 

-0.60%

Overall average selling price

 

-1.15%

Overall unit sales

 

-1.38%

Overall inventory

 

 

1.05%

 

 

START PREPARING TODAY

If you plan to BUY this year:

  1. Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly.
  2. Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you.
  3. Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today!

If you plan to SELL this year:

  1. Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it will also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property, and it will help us price your home correctly once you’re ready to list.
  2. Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. We can help you determine which ones are worth the time and expense to deliver maximum results.
  3. Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage … and get you one step closer to moving when the time comes!

Source:                                                                                                                                                                                                         Dustin Cook                                                                                                                                                                                         John Lucas/ Postmedia                                                                                                                     https://edmontonjournal.com/business/real-estate/looking-ahead-to-edmontons-housing-market-in-2019                                               Edmonton Real Estate Board

 

 

Diane Cameron

Diane Cameron

REALTOR®
CENTURY 21 All Stars Realty Ltd.
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