Affordability to drive 2019 market
As the residential real-estate market heads into 2019 following a challenging 2018, sev-eral key factors will play a role in determin-ing demand for homes and the types of homes people will be buying in Edmonton and area. The key one of course is the economy, as Alberta continues to struggle with much uncertainty, concern and challenges. That impacts consumer confidence in making big-ticket purchases and real estate is probably the biggest one most people make in their lifetimes. On top of that economic climate are other fnctors surh as rising interest rates and tougher mortgage regulations and Housing Corporation. You can really see this by looking at inventory numbers and the new types of units that are being built. If you look at the numbers for Edmonton, inventories are ris- ing for all segments of the market except for apartments. So singles are high and grow-ing. Semis are up there and growing. So are rows. But apartments are coming down. This is indicative of the types of preferences that buyers have for new units in particular." Jayne McKay, senior market analyst with research firm Urban Analytics, says because of the affordability issue townhomes will continue to be a popular choice for homebuy-ers in 2019 as they were in 2018. "Townhomes are popular because buyers are seeking the most affordable product type and townhomes offer a large amount of space in family-friendly neighbourhoods for a very affordable price: says McKay. Don Campbell, senior analyst with the Real Estate Investment Network, says Edmon-ton did not feel the economic downturn as harshly as Calgary did. It had many large employment projects already on the go when t listings? says Campbell. "This will no ques-tion lead to a decrease in the average sale price, which is important to note that does not mean all houses drop in value. It is just an equation that points towards an increase in demand in the lower one-third of the market price and a slowdown in in the lower one-third of the market price and a slowdown in demand for the top two-thirds of the market price range." Campbell says transit improvements continue to be a big driver of where people will be choosing to live, whether rental or purchase. This is especially true in Edmon- ton, given the two new transit lines that have either begun to be built or have funding in place. "Over the coming decade," he says, lithe neighbourhoods that are serviced by these new lines will outperform the rest of the city's neighbourhoods."