Here is our update on the Edmonton real estate market. They will hold the mistaken belief that vaccinating the most at risk is good enough. Over the past few years, rents rose faster than incomes, so first-time buyers struggled to come up with down payments. Vaccine supplies, physical logistics, and anti-vaccine attitudes will be the greatest challenges once vaccines are approved. Average sold prices reached $376,636, a 1% decline compared to October but still 6% higher than 2019. Mortgage rates are at historic lows however, higher unemployment largely offsets the benefits of low rates. With Zolo's real estate market trends, you'll get real-time data on Sherwood Park's housing market. Prices will likely drop significantly in 2021, so a wait-and-see strategy is advisable. The provinces would likely have to reimpose local restrictions and lockdowns. Her research team predicted that the second wave in the Fall of 2020 was a likely scenario. 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. Shared values make better working relationships. Until now, the impact of unemployment has been delayed by the CERB and mortgage payment deferral program. Want to learn more about real estate risk? An average of roughly 2.5 people live in one household. We match you with local, pre-screened, values-aligned Realtors and Mortgage Brokers. 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. Find out more about the benefits of a mortgage broker. 2. CMHC, the government housing agency, predicts a ‘peak-to-trough’ drop of between 6% and 19%. Home sellers may take heart that recently, despite the pandemic, homes have been holding their value. Confidence has recovered remarkably well when compared to the 2008 Great Recession. Below we will summarize how the five factors result in the current Edmonton forecast. If you are in a hurry to buy because you’ve recently expanded your household (Congratulations! Looking forward to 2021, some forecasters expect prices to continue rising while others expect prices to drop. The government has now unwound many of the programs supporting home values through the recession. Purchase activity is highest in the house and townhouse markets. 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. Homebuyers are happy that prices haven’t changed much in the past year. 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. Real estate markets are local and in some Metro Edmonton submarkets, house prices have held steady while in other submarkets, values have dropped. The number of new residential listings is up year over year, … They haven’t increased in value as much as houses because it appears that condos are falling out of favour as people seek larger living spaces where they can work-from-home. Hello house hunters! The most recent rise in mortgage delinquency extends the streak to four straight quarters.”. We tend to place a little more weight on CMHC and Moody’s Analytics. 2020 Housing Forecast – Edmonton Event Centre Jan 15, 2020. It builds on the Spring 2020 edition that focused on housing market activity for Canada and the provinces. Mortgage Sandbox 5 Forces Framework Find out where mortgage rates are headed before you start to negotiate. Both organizations are unique in their ability to see market conditions across the regions and all the banks. Several vaccines show promising results however, they are unlikely to be widely available until mid-2021. Data indicates that more Canadians are missing their monthly payments, and it appears more Canadians are over-extending themselves. 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. The highest forecast in a September Reuters poll of 16 economists was price growth of 10% in 2021, while the lowest prediction called for a 10% drop. As more buildings complete in 2021 and 2022, and people move out of their rental or sell their current home, this new supply should help maintain a balanced market. TD Housing Forecast from April 2020 and TD’s Downgraded Forecast. Oil prices are still quite low so a rebound in oil sector employment appears unlikely at this time. 7:30 am Breakfast Population Growth: The pace at which people are moving to an area. Our platform matches you with local, pre-screened, values-aligned Realtors. After initial emergency authorization, the government will likely prioritize vaccination for front-line health care workers, essential workers, and public safety officials. Ninety-six percent of Canadian oil is exported to U.S. markets, but the United States has not managed the pandemic well. The Edmonton benchmark house price has picked-up in recent months and has held its gain. Fewer investors will be buying real estate for short-term rentals until travel restrictions are lifted. The positive outlook for Canadian real estate in 2020 is based on healthy buyer demand. Statistics in August, show that 21 percent of Edmonton mortgage holders were still unable to make their regular mortgage payments. Canadian Real Estate Association Quarterly Forecast. Ottawa, ON, November 16, 2020 – Statistics released today by the Canadian Real Estate Association (CREA) show national home sales continued running at historically strong levels in October 2020. Halifax’s growing population is putting pressure on both the real estate market and rental market leading to home price increases. The second wave of COVID-19 is not yet under control. Edmonton’s home prices are very affordable. Be the first to hear leading industry experts predict the Edmonton and area's 2020 economic and real estate outlook. A client-focused real estate agent dedicated to get clients best return on their investment. Realtors want you to be pre-approved before you look at homes. 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. There were an estimated 2,400 short-term rentals in Edmonton before the pandemic. Home prices across Canada could tumble about seven per cent in 2021, as unemployment dampens the hot real estate market, according to a forecast by Moody's Analytics, Inc. If you’re negotiating a pre-sale purchase that is schedule to be built in one year, then be sure to get a discount on today’s values. Edmonton, December 2, 2020: Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for November 2020 increased 27.18% compared to November 2019 and decreased 16.23% from October 2020. Several vaccine candidates have reported promising results and, once they are approved for use in Canada, it will take 6 to 9 months to vaccinate enough Canadians to achieve herd immunity. November continues October's shift to a seasonal slowdown for Edmonton's real estate market. At the current pace of purchases it would take under 5 months to sell all the available listings. Read the Vancouver Home Price Forecast, Okanagan Valley Home Price Forecast and Calgary Home Price Forecast. Since non-core demand is ‘optional’ (i.e., not used to shelter your own family), it is more volatile than core demand. Our 2020 summer edition of the Housing Market Outlook report provides forecasts for Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal. This suggests a long road to reach full economic recovery. Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for October 2020 increased 26.34% compared to October 2019 and decreased 0.21% from September 2020. Typically, a developer must sell 70% of homes in a building before they can starts construction, so housing starts are a good indicator of successful pre-sales. 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