Economic trends and real estate laws can have a big impact on closing rates and housing prices. In Calgary, Alberta, a real estate agent shares that the residential real estate market has changed a great deal in the past few years. As sales in the region dropped 18 percent from last year, experts point to a few reasons and share some advice for sellers.
Many people in Canada buy cottages or coastal homes in different provinces or even countries. In Alberta, it is not uncommon for people to purchase residential real estate in British Columbia for vacationing or retirement purposes. Those who do own such properties should be aware of a new tax levied on empty properties in Lower Mainland, Kelowna, Victoria and Nanaimo, British Columbia.
While there is no way to know the future of any industry with complete certainty, many groups still do their best to predict how the real estate market will unfold in the new year. According to a real estate forecast from Calgary Real Estate Board, 2018 is expected to look much like the year prior in the Alberta City. That said, new laws and economic changes could have some influence on residential real estate pricing.
Much of the news surrounding home ownership amongst younger Canadians suggests that they are not buying due to financial constraints. However, some young professionals in Calgary, Alberta have shared that they are renting despite having the ability to buy a house. They say the low cost of renting in the area and the unsure returns on residential real estate investments have led to this decision.
There are a multitude of trends developers consider when deciding on the type and location of homes to build. In Calgary, Alberta, a proposed condominium development raised the question of whether three-bedroom condos were feasible to add on 16th Avenue NW. However, the managing principal of the development company shared that the demand is too low to justify the high price of building this type of residential real estate.
For those looking to buy a home, there are many options available. As the value of single-family houses rebound in Calgary, Alberta, the assessed value of condos has gone down in the city. These trends may influence those who are looking to purchase residential real estate in the area.
There are many questions about whether younger Canadians will be able to purchase and own a home. While many Alberta millennials continue to rent, others are looking at home ownership as a way to invest in their future. Those who are considering entering the residential real estate market should take a few steps before making this major purchase.
Many factors can impact the performance of the housing market in Canada. While Alberta residents typically look to the economy to determine the outlook of the residential real estate market, legal changes may be having the biggest impact in the new year. The new mortgage stress test, which comes into law in Jan. 2018, has caused the Canadian Real Estate Association to forecast a 5.3 percent drop in national sales in 2018.
Economic factors can have a big impact on property and development in Canada. This can be seen in Alberta, where residential real estate development grew 22 percent in the last quarter. This is led primarily by 37 percent growth in single-family homes. The increase comes after two years of decline in the residential construction sector.
According to experts at a recent Calgary conference, it appears that millennials are leading the charge in the movement for affordable housing. The generation born between 1982 and 2004 has a great deal of buying power in Alberta and the rest of the country, with over three million now in the age bracket between 25 and 30. With less of this demographic purchasing residential real estate than in previous years, experts are looking to better understand their patterns, needs and financial situations.