Calgary's real estate market can be compared to
running. To begin you can go at a fast
pace and you might think you can go forever - 'this is nothing'....
Eventually your legs get tired, your heart is pounding hard
and you're sweating profusely. You have
to slow down, take a breath and regroup and then can increase the pace
again. The cycle can continue over and
over.
Calgary's real estate market is just like that - cyclical.
Sometimes its hot like last year where Calgary had an 8% gain
in real estate prices - and generally continued to grow year over year since
2009. Buyers should be prepared for changes in Calgary real estate market both
financially and emotionally.
See Historical housing prices - Graph.
Sometimes the market is not so hot and becomes slower paced
market like our current market. Layoffs
are ubiquitous, employment rate increases and fear is very real to some.
Indicators in the market are showing a decreased customer
confidence and change in the real estate market. Overall, we are seeing a trend of lower
sales, greater supply, and a lower sale price.
It is important to pay attention to trends but also keep understand the
facts with pertaining to the property type and neighbourhood.
Total sales for February 2015 were down 34% from the year
before. New listings up 8.82% from 2014.
Active listings in Feb. 2015 are up 107.27% from the same time 1 year
prior.
We are seeing signs of a buyers market!! If you've been on the side lines waiting for
more inventory to come on the market right now might be your time as there is a
large supply. Coupling that with the low
interest rates can make right now an ideal time for home ownership.
Sellers will have to price homes well and spend more on
marketing. If your planning on listing
your house on the market you should be prepared for the number of days on the
market to increase because of the supply.
Still, no one knows how the price of oil will stay low but
the longer it stays down we will see less confidence in the real estate
market. Migration is expected to
decrease.
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