The New Year hit with an extension of the trend from the previous year. Our market has not changed and set in favour of the sellers with a tight supply of homes on the market. Seasonally we are now through the slowest time of the year for buyer activity and we should now see strong demand until the end of May as is typical of a spring market. It is expected that we will not have enough inventory and with added demand we should start to see prices rise reasonably.
A big change from the previous 2006 to 2008 hot market is the reluctance of buyers to take unnecessary risk. We are seeing competitive offers but most seem to be in reason with the expected selling price and buyers are demanding to have conditions on the contracts such as home inspections, financing and condominium document conditions.
The strongest segment of the Calgary market is inner city homes. The tight supply and high demand is making it increasing more difficult to find good homes and we are noticing prices rising in these areas. The condominium market has also seen a strong comeback especially at the lower end of the market. Strong rental market fundamentals have pushed rents higher and brought the investors back to the condominium market as an option for rental properties. This has absorbed most of the oversupply that has been hanging over the condominium market for the last few years and we have noticed prices of these types of properties moving back to previous highs.
Interest rates have remained low with 5 year mortgages once again hovering around the 3.2% mark. We have also noticed a growing interest in 10 year mortgages that can be obtained in the 4.5% range. Eventually interest rates will rise but with the low Canadian dollar it appears that The Bank of Canada has some room to continue with their low interest policy until the whole Canadian economy is going again.
This low interest rate environment and the continued affordability due to higher wages and lower taxes keeps buyers interested in our market. This along with our young population sets up Calgary as one of the best areas in Canada for improved and sustainable house pricing as we move forward.
Looking forward we expect the current conditions to persist at least through the spring market. Our team is dedicated to complete customer service and ensuring that your real estate needs are professionally handled with you interests always at the fore front. We work hard to simplify the process with trusted professionals that can assist you with all the extras in all real estate transactions. If you are considering a move don’t hesitate to contact us as we would are looking forward to hear from you. Contact us now