Canadian house prices are forecast to increase by 3.2 per cent next year led by Montreal, Ottawa and Toronto as millennials shifting from condominiums spur demand alongside immigration and the waning impact of mortgage restrictions introduced last year, real estate agency Royal LePage says.
“The oldest peak millennials are now in their 30s,” Phil Soper, Royal LePage president and CEO, said in a statement. “With kids in hand and dog on leash, these parents are now eyeing the suburbs that their baby boomer parents so coveted. We predict that the period of disproportionately higher price appreciation in the condo segment is drawing to a close as interest in detached homes is reborn.”
Alberta’s market continues to struggle along with the energy sector’s woes although movement on pipelines and corporate tax cuts to attract business and employment could prove positive, according to Corinne Lyall, owner of Royal LePage Benchmark in Calgary, and Tom Shearer, owner of Royal LePage Noralta Real Estate in Edmonton.
Phil Soper, Royal LePage president and CEO Shearer said: “Sellers are compromising and buyers are realizing that prices are not going any lower. In 2020, we should see a modest price bump but we are also expecting a healthy gain in sales activity.”
Millenials are broke and debt laden