Stephen Lau, BCom, LLB, and realtor with RE/MAX Real Estate presented a 2020 Edmonton Real Estate outlook.
There are now 5 generations poised to buy or sell a home and with market influences, it is harder than ever to make a buying and selling choice. External factors have deterred millennials from owning a home; high debt-to-income ratio, difficulty saving for a down payment, new mortgage qualifying rules, reduction in purchaser confidence, and the supply of affordable housing has declined. The house baby boomers own is not the house Millennials can afford or even want, says Stephen Lau. "Immigration and wealthy foreign buyers have led to a change in monetary and lending policies by the government and banks. Mortgage 'stress test' rules make it increasingly difficult for homebuyers to qualify for a home purchase. Sellers will have to adjust their expectations that their home values will keep going up."
Stephen suggests "if you intend to live in your home for more than 5 years, consider investing in modernizing your home's interior/exterior appeal. If you intend to sell in less than 5 years, you will not have the benefit of enjoying your renovation investment for long and will not "recoup" the investment and be better off doing minimal improvements to get the house to be reasonably competitive with more modern homes." Appliances, upgrading to hardwood and granite counters, smart home features and upgrading the energy efficiency of a home will realize the best return of the investment.
Stephen Lau, BCom, LLB, Realtor