Calgary and area’s strong economy and low relative interest rates have helped this year’s market post significant strength in both home sales and housing prices. Over the year we have witnessed the market move from a balanced market to firmly in the favor of the seller. Listing inventory is in short supply but has remained fairly steady to the number of sales allowing the market to stay away from the craziness of 2006.
The concern is moving forward and it a little unclear how the market will react. The increasing mortgage rates will restrict some buyers from entering the market and recent rules introduced by the Canadian government to mortgage financing could further curtail buyers. The other side of the equation is that mortgage rates are still very reasonable and buyers may want to get into the market before these rate move higher. If supply cannot keep pace then we will be in a market that could see higher than expected price increases.
This year has also been a tremendous year for the rental market with increasing rental rates and low vacancy rates. This has put pressure on the lower end of the condominium market and we are seeing good price recovery in this segment of the market.
On the mortgage interest rate side of the equation we have seen the 5 year rate bounce off all-time lows and now sits at 3.79%. The short term rates have not moved as the Canadian government does not want the Canadian dollar to rise and stifle the economy. If you would like to discuss the market in detail or would like us to update you on the value of your home please do not hesitate to call.
Your Calgary Connection continues to grow. I am pleased to announce that I have added another associate to our group. Gary Yip is enthusiastic by nature and anxious to make our customer based service even stronger. Gary has been a Realtor for Royal LePage since 2009 but also brings a 25 year career as a strategic marketing & sales professional in the information technology field.
More than ever we are ready to assist you in all your real estate needs. If you or someone you know is considering a move, Sabrina, Gary and I would be honoured if you passed along our names. We promise to give your referral the same uncompromising service that you have come to expect from us. You can reach us at 403-685-2413 or toll free at 1-888-681-6683.