Calgary to lean towards buyers in 2020 with more first-time home buyers entering the market than ever
The Calgary housing market will lean toward buyers in 2020 with a zero percent residential sale price expectation. This is dependent on a number of different factors, including the province’s economy and the fate of the Keystone Pipeline. The city’s employment rate and overall economy will have the greatest impact on the housing market, along with strong population growth.
Calgary’s buyer’s market is due to its economy and high unemployment rate which is expected to continue into 2020 should major changes not be made. Housing affordability isn’t a concern due to low condo prices allowing buyers to easily enter the market. Despite the high unemployment rate, the city’s population is increasing due to residents from other parts of Alberta moving to the city.
Condominiums and two-story detached homes are the most popular properties in Calgary while Coventry Hills, Evergreen and Northeast Calgary are expected to be the hottest markets of next year because of their affordability. First-time and move-up buyers are expected to drive demand in 2020, with more first-timers entering into the market compared to past years, due to the city’s overall younger population compared to the rest of Canada.
2019 federal election platform tracker: Where the major parties stand so far
Canadian voters will head to the polls on Oct. 21 after what is expected to be a heated federal election campaign.
Justin Trudeau is aiming for re-election after the release of a 2001 image of the Liberal Party leader in brownface makeup and in the wake of the SNC-Lavalin Group Inc. scandal; while Andrew Scheer’s Conservatives, Jagmeet Singh’s New Democrats, Elizabeth May’s Green Party, Maxime Bernier’s People’s Party of Canada and Yves-François Blanchet’s Bloc Quebecois jockey for power.
Here’s a look at what each of the parties have promised so far on the major issues affecting the economy, business and your finances. BNN Bloomberg will keep this platform guide updated as more details are announced.
The story about luxury home sales in Canada’s four major markets is a tale of two cities going one way and two cities another, says the (ital.) 2019 Mid Year Top Tier Real Estate Report (ital.) from Sotheby’s International Realty Canada, which tracks sales of homes priced at $1-million-plus.
“Eastern Canada’s two key metropolitan areas (Toronto and Montreal) continued to lead Canadian top-tier real estate performance in the first half of 2019. Toronto’s revitalized top-tier market reflected renewal in consumer psychology now that the impact of recent policy and mortgage lending changes have been assimilated, as well as broader renewal of confidence in the nation’s economic performance,” says Don Kottick, president and CEO, Sotheby’s International Realty Canada. “Over the past few years, Montreal has also emerged as one of Canada’s most vibrant luxury real estate markets due to its strengthening economic fundamentals. In the first half of this year, it was the city’s condominium market that surpassed expectations with year-over-year percentage sales gains that outstripped other major cities’ performance.”
In spite of renewed conventional real estate activity in Calgary, Kottick says market recovery lagged in the top-tier segment, which remained entrenched in buyers’ market territory. Meanwhile, slowing sales and excess inventory burdened Vancouver’s market for real estate over $1 million and falling prices recalibrated demand across the city’s housing market.
“In the City of Calgary, a gradual economic recovery and easing housing prices re-engaged purchasers in the market for homes under $500,000 in the first half of the year,” says Kottick. “Sales of residential real estate over $1 million — condominiums, attached and single-family homes fell 21 percent in the first six months of 2019 from the previous year’s levels.”
By home type, Sotheby’s reports single-family sales of more than $1 million fell 20 percent in the first six months of the year; of these, seven were sold over asking price, reflecting market realities that require sellers to price homes appropriately to complete a sale. One single-family home sold for more than $4 million, up from zero sold in the first half of 2018. In the attached homes market, 26 homes sold at more than $1 million in the first half of the year, a 10 percent year-over-year decline.
Calgary’s luxury condominium market remained quiet in the first half of 2019, with sales of more than $1 million falling 65 percent to six condominiums sold.
There are signs that top-tier real estate consumers are preparing to re-engage in the market in the latter half of 2019, says Kottick.
“Calgary’s housing market is starting to come into alignment, as sellers continue to adjust their pricing expectations,” he says. “With the conclusion of the provincial election offering fresh optimism, and growth forecasted for the next half decade, it is expected that the city’s top-tier market will continue to see a gradual recovery.”
Calgary sun article here.