The Calgary Real Estate Board released their March 2015 statistics and it shows that the city’s inventory of available homes to purchase has increased and the benchmark price has eased (-3.82% since March 2014), conditions consistent with a buyers’ market. This means if you’re looking to buy a home there are more houses available to choose from, potentially at a lower price, allowing you to explore more options in your hunt to find your dream home.
Calgary Home Prices Have Declined
“Typical home prices have declined by 0.59% in the first quarter of 2015, compared to the fourth quarter of 2014. The sales to new listings ratio also dropped to 41% and months of supply averaged 4.01 for the quarter. This is a significant change from one year ago when the market was facing inventory shortages and price gains”. Ann-Marie Lurie, CREB® chief economist.
Sales activity has also fallen since the beginning of the year which is good news if you’re looking to purchase a home. As a buyer, you are less likely to be involved in competing offers (where more than one person wants to buy the same property, which can lead to a higher sale price). In a buyer’s market, it may take longer days on the market before a seller receives an offer which means they might look more favourably on the one they do receive. Corrine Lyall, President of the Calgary Real Estate Board suggests, “the amount of competition for a property is often what influences the price that buyers and sellers will agree on”.
If you’re thinking that you want to move from your current home into a more expensive property, taking advantage of today’s market conditions is very appealing. The more you spend, the more you’ll save in a market like this and the equity built will be equivalently higher when the market does start going up again. The amount you’ll save on the higher purchase price of your new home just might compensate for any loss you might experience on the home you’re looking to sell.
Take Advantage of the Low Interest Rates
As most people require a mortgage to purchase their home, now is also a great time to lock in at a lower interest rate on your mortgage. The bank of Canada lowered their prime rate back in January 2015 to 2.85% making having a mortgage less daunting and many big banks followed suit. If you’re thinking about making a home purchase in the next 3 months, it’s worth calling a mortgage broker to find out your best options and lock in at an interest rate!
If you’ve locked in a rate and want to start your home search or just have questions, contact Marnie Campbell Realty Group today.