Determining the right time to sell your home has always been a challenge. Many homeowners try to time a sale for when the market is peaking, but that can be like trying to predict when the stock market is at its highest. Without the advice of a knowledgeable Calgary mortgage broker who understands today’s market, deciding when to sell can be like gambling. There are so many factors to consider that potential sellers need the most complete and accurate information available. The good news is: our real estate market is strong, so if you have been thinking of selling your Calgary home, now is a great time to do it!
Today’s Calgary Real Estate Market
In recent years, Calgary has consistently ranked among the most affordable markets in Canada, and this is reflected in several years of near-record sales levels. According to the Calgary Real Estate Board, last year’s total volume of sales was more than $9.1 billion. Nationwide, home sales have actually levelled off, but in our area sales are at about $6.8 billion for the year so far, which puts it on pace to be another extremely successful year. With a high level of personal income, low interest rates, and a limited rental supply the market continues to be very appealing for those thinking of buying a home.
When there is a limited number of homes available, competition can be fierce. This has led to bids from multiple buyers, waiting poised to jump on high quality offerings as soon as they hit the market. Buyers thinking about newer condos in the inner city area are faced with prices in the $500-$600 per square foot range, so many are rethinking their plans to purchase condos and looking at homes instead. Some builders have been quick to pick up this high demand and are bidding as much as $200,000 above listing prices for lots in these popular locations.
Good News Amongst the Bad
While the June floods devastated many parts of the region, from a home seller’s perspective, they helped the market. In some parts of the city buyers needing to relocate quickly led to an increase of purchases. While those whose families were displaced and could afford to buy a home have purchased, government assistance is coming available for homeowners whose homes were destroyed in the catastrophe. It will soon be more financially feasible for people to relocate out of the hardest hit locations, and there could very likely be another spike in demand.
New buyers on the market
At Mortgages By Candice, we have found that many potential buyers looking for homes today are former renters who are thinking about buying because of high rental prices, a lack of available properties, and the current low mortgage interest rates. Our guide, 10 Steps to Becoming a Homeowner, aims to assist first time homebuyers with understanding the process and helping them selecting the most suitable mortgage product for them from the variety of choices available today.
Because new buyers have several alternatives to the conventional 20% down payment required by a conventional mortgage, they are more easily able to purchase a first home. With a broker’s assistance, getting pre-approved for a new mortgage has never been easier. Why would anyone choose to rent when the help from a Calgary mortgage broker can make it easier to buy?
Brokers have also been helping first-time buyers with less than perfect credit or too much credit develop a mortgage plan, making it possible for them to realize their dreams of home ownership even when they thought it might not be possible. This continuing influx of new buyers has added to the demand for homes. Currently the listing inventory is about 20 per cent less than the same time last year, and prices are about 7 per cent higher. It really is a great time to have a home for sale on the Calgary real estate market.
A low number of available homes and a high demand from buyers, including many who have never owned a home before, have created an ideal seller’s market. While no one can tell you the perfect time to sell your home, conditions and trends the time is ripe for those who were considering it but hadn’t quite made up their minds.
For those looking to buy, more homes coming available means more choice for you. At Mortgages By Candice, we can help guide you through the home buying process, whether this is your first time owning a home or if you are simply looking to improve your family’s situation. Contact us today for more information.