It’s easy to get discouraged by the current market in Calgary. Sales are down. Prices are down. And inventory is up—way up.
Sellers of detached homes are looking at a 3.4% price decline compared to June 2015, which, based on the current benchmark price of a detached home ($502,400), amounts to an average loss of $17,000. In some segments of the market those price declines are much steeper, and in some communities, those declines are still further amplified. If you live in a a row home or semi-detached infill in Calgary’s West district (see orange area on map), the value of your home could be down closer to 8%.
But it isn’t all bad. June benchmark prices in Calgary were 0.5% higher than May, signalling that even temporarily increased demand can have a positive affect on prices. While we can’t predict what the fall market will look like, we can say that even in a downturned market, there is opportunity.
If you are a buyer in the first-time, down-size, or investment category, now is the time to enter the market.
First-time Buyers. If you are lucky enough to have a stable income and access to minimum 5% downpayment, then there are some great deals, particularly in the inner-city condo market, where prices have fallen substantially.
Down-sizers. If you are looking to sell your family home and move into something smaller, but without compromising on some of those hard-won luxuries, then now is a great time to buy. Prices are down across the board and inventory is up, which means you’ll pay less for more.
Investors. With low interest rates, now is an ideal time to leverage the current equity you have in your home to purchase another property at a discount.
Regardless of which category you may fall into, it is always a good time to assess your real estate goals and determine which options are the best and highest use of your time and money.