Calgary Real Estate Blog

The sustained low oil prices and a marginally increasing unemployment rate (although it’s not nearly as catastrophic as some might have you believe) are finally starting the affect the prices of mid range homes in calgary, with the August average selling price moving from $475,000 to $466,000. Now, that’s less than a two percent drop, from a record setting year to a recession, so it’s certainly not a major correction, but the graph is moving downwards and that’s something of which to be aware.

The question is, are we on the verge of a buyers’ market – and if you’re looking to buy, should you wait? The answer to the first part is, it depends on who you ask. Google “buyers’ market calgary” and the first two results are, “Housing Affordability Index shows Calgary is a buyers’ market,” and, “For some in Calgary, it’s still a seller’s market.” Both articles are from June, 2015. The upshot is, if you’ve got a house for sale for under $450,000, you’ve got a hot commodity on your hands and will likely sell post haste. Overall prices are going down, though, with fewer buyers thanks to economic uncertainty, meaning sellers in some neighbourhoods will need to cater more to their potential customers to make the sale.

So, what to do? In my fifteen years of experience, I can say waiting or not waiting is not going to have much of an impact on most buyers or sellers. Usually people need to sell their current house before buying a new one; banking on prices going down means banking on the value of your own property dropping as well. If you intend to stay within the same category of home, it’ll probably be a wash. Jumping to a much more expensive house from something in the mid range, however, could offer an argument for waiting a bit: as the economy slows, prices tend to fall the most in the high end of the market, while the middle stays relatively stable, so there may be deals to be had if oil remains low. That’s a significant ‘if’, though.

For the most part, the best time to buy your house is when you need to, whether it’s relocating to be closer to the kids’ school, to shorten commute times, or to get a property with more bedrooms to accommodate a growing family. There are just as many stories of people’s new residences shooting up in value after purchase as there are of them going down; as long as you buy a home that suits your needs, for a price you can afford, there’s no reason for regrets.

Why don’t we discuss this more – contact me and let’s start the ball rolling.

People have often speculated on when exactly the best time to buy a house might be – what combination of a bountiful market and a scarcity of buyers will lead to the best deal on a great home. Charts and graphs have been studied, deep thinkers have thought deep thoughts.

Well, there’s definitely a right answer, but it’s hardly scientific.

The best time to buy a home is when you’re ready to buy a home.

Okay, maybe that’s a little anticlimactic, and a touch glib, but the truth is a buyer’s preparedness is the most important factor in making a successful purchase. If you’re thinking of selling and moving up to something larger, bear in mind that the high tide raises all boats: waiting for your property to go up in value is also waiting for your future home to get more expensive too. Maybe there can be an advantage to be found on this front when it comes to downsizing, but generally if we’re in a market that’s raising prices, it’s because there are an increased number of buyers at all levels, and so everything becomes more valuable.

Low interest rates are sometimes cited as a driving factor for more sales, but for the majority of us the purchase of a home requires a long term mortgage that will weather potentially massive fluctuations due to the health of our economy; the early 1980s saw rates as high as 22 percent, which dropped to around eight percent by the mid ‘90s. So, sure, today’s low rates can certainly make entry into the market easier, but they shouldn’t be the only reason to buy a home right now.

No, there’s no external factor that should shove a potential homebuyer who’s sitting on the fence into the market. Instead, look inward and examine your family’s financial position, anticipate upcoming expenditures and cash flow boosts, come up with a list of reasons to move and another of reasons to stay put, and have candid conversations with your family. Then, when you’re ready, get pre-qualified on a mortgage, spruce up your present dwelling, call a great Realtor, and, most of all, have fun shopping for that dream house. Good luck!