by Stuart Neal
on Friday, July 10th, 2020 at 5:56pm.
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.”
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.”
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