Whether you’re planning to become a home buyer in 2018 or hoping to sell your current property, it can be hard to forecast the way the real estate market will go. Here are some trend predictions, gathered from several sources, which maydominate in 2018:
A recent report from the Urban Land Institute and PricewaterhouseCoopers brings good news: the usual boom-and-bust cycle isn’t behaving typically, so what could have been a bust may be a gentle downturn instead.
Smartcitiesdive.com, which highlighted elements of the PWC/Urban Land Institute report, suggests the real estate industry has begun to take an interest in a new generation.
This is not to detract from the importance of millennials who, incidentally, are expected to become more interested in purchasing a home in 2018 than in previous years. A new generation, “Gen Z,” is indicating an even stronger interest in becoming homeowners at an earlier age than their millennial counterparts. Born after 1995, Gen Zers are enthusiastic about fixer-uppers and do-it-yourself projects and may lead the way in gentrifying distressed urban neighbourhoods.
The Internet of Things is changing everything, so why not real estate? Smart home automation is driving the industry to incorporate the latest tech in new home builds and attract tech-savvy buyers by focusing on tech amenities in listings. The PWC/Urban Land Institute report suggests the industry has been lagging behind, technologically speaking, so 2018 may well be the year of the high-tech home.
Little is known yet about the economic and political factors affecting the industry across Canada. Continued government intervention in selected markets, such as Vancouver and Toronto, remains a question mark as does the movement of interest rates. The Canadian economy appears stable, and ultimately it may be that stability that will impact real estate at the seller and buyer level. Continued concerns about affordability and household debt will remain issues to contend with in 2018.