Many homeowners in metro Edmonton are conflicted right now. Should they sell, or wait for a recovery in the market. We have not seen high prices since 2007 and Covid 19 has only complicated matters.
In general, I’m a ‘glass is half full’ kind of guy. I try to see the upside in all things including the housing market in metro Edmonton.
However. I’m starting to read some articles online that are suggesting homeowners and potential real estate sellers should be cautious.
For example, the following articles (click the links) are suggesting strong headwinds and depressed if not dropping values for years to come.
Please read them yourself and let me know what you think. You are welcome to leave a comment in the box below.
I read this article yesterday. It talks about slowing population growth and that it could hinder the housing market for 2 years or more.
Here’s an extract:
“TD Economics Rishi Sondhi says COVID-19 has “thrown sand in the gears of Canadian population growth.”
The national population increased by only 75,000 in the first quarter of 2020, the weakest gain since 2015. And it just got worse. Data show immigrants arriving in Canada dropped by 80% year over year in April.
This is not a problem that will disappear overnight. TD expects travel restrictions and people’s fears, a COVID-19-related delay in processing immigration applications and a slow recovery to the global economy will keep population growth well below its pre-virus rate over the next few years.”
Here’s a link to the article Slowing Population Growth Will Drag on Canada
And this article I read only this morning. It talks about our market and economy being stagnant for 10 years!
Again, here’s an extract:
The housing market remains a risk, but Capital thinks its earlier forecast of a 5% fall in prices this year now looks too pessimistic. “We are now assuming a broad stagnation of house prices across the country over the next two years, as economic weakness is offset by the boost to affordability from lower mortgage rates.”
And here is a link to the article: Economy Will Struggle for 10 Years
Who is right? Who knows?
I would suggest that if you are sitting on the fence with a short term objective of waiting it out “for a year or 2” you might be wasting your time.
Would you be in a better place if you sold now at todays prices? Would it be better if you were not exposed to the expense of maintenance, taxes or damage caused by renters?
Perhaps it would be a waste of your time and money to wait for the upside because right now there might not be one.
As always, I am happy to discuss your own unique situation, your goals and your concerns. I’m only a phone call. or an email away.
About the author:
You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®.
Want more information about our full service FLAT FEE home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home sellers page www.FlatFeeRealtyAdvisors.ca