Whether you’re in the market to buy a home or business or are anticipating selling your property, knowledge of current trends in real estate is always very helpful. There are some fascinating developments on the Canadian real estate scene. Keep in mind, however, that every city is unique so the local influence of national trends is important to recognize. Having said that, here are three trends to pay attention to.

Changing demographics

Two large demographic groups continue to impact the real estate market. Many in the “Baby Boom” generation, born between 1946 and 1964, are retiring and downsizing to smaller homes. “Millennials”, whose birthdays are from 1981 to 1996, are the largest Canadian demographic. A number are living with their parents in secondary suites while saving for a down payment. As Millennials move into city condos and then suburban houses, they’re looking for convenience that supports their lifestyle. This includes good proximity to work or transit, a gym or fitness centre nearby as well as accessible neighbourhood parks, bike paths and recreation facilities.

Influence of technology

Technology has a number of impacts on real estate. While the availability of data analytics allows realtors to anticipate and meet the needs of their clients better, savvy home buyers are able to do their own research before making that first call to a real estate office. What’s more, new technology in the construction industry means that houses can be built better and deadlines met despite shortages in construction and trades people. Changes in technology also have a major influence in how people work and where they live. Residential home buyers are attracted by smart building technologies that permit mobile control of lighting, heating and security. Commercial tenants may have different needs such as renting flexible work spaces on a short-term basis, and individuals working remotely might be looking for co-working spaces.

Home ownership affordability

Home ownership demand is strong, interest rates remain stable and prices are relatively unchanged or have dipped slightly in most markets with the exception of some of the larger Canadian cities. The recently-implemented mortgage stress test, that requires home buyers to show that they can still afford a mortgage if interest rates rise, is delaying the entry into the housing market for many first-time home buyers. Despite this, affordability has improved overall. As home prices rise in the larger cities, buyers are moving to smaller centres where builders and local communities are responding with new construction and infrastructure. As well, there continues to be a demand by foreign buyers, particularly in larger municipalities.
The Calgary picture has some distinctive aspects. The increase in population is putting some pressure on the rental vacancy rates. At the same time, more renters are starting to buy due to a small price drop and a large inventory of new homes and condos available. While the energy sector continues to struggle, there’s moderate improvement in employment in other sectors. If you’re looking to buy property, you should have significant choice. On the other hand, if you are preparing to sell you need to make sure that your property stands out in the market. Whatever your situation, I’m ready and able to give you all the help you need!