Why Now is a Good Time to Buy Calgary Real Estate (Fall 2016)
Are you thinking of buying a property in Calgary sometime soon? If so, you may be wondering if now is a good time to buy.
Despite current economic conditions in Alberta, truth is that there are some solid reasons as to why you should consider making a move in fall of 2016. Here they are:
#1 – More inventory, more choice
Inventory levels for all sectors are currently high meaning that as a buyer you have a lot more options to browse on the MLS®. This also translates into having some more time to make the decision on what property you want as there is typically less competition between buyers.
For those of you unfamiliar with the term, months of inventory refers to the amount of time it would take for all current listings to sell in a particular area if no new listings came onto the market.
For example, according to the Calgary Real Estate Board (CREB®), inventory levels have averaged at 6 months for the apartment sector throughout 2016 – the highest seen in the city since 2003 – causing sellers to further adjust their listing prices downward throughout the year.
#2 – Lower prices, more affordability
As mentioned above, the apartment sector saw steeper price declines in August of 2016 than others because of surging inventory levels. The attached sector is yet another that has seen its own fair share of inventory gains as of late.
Because of the increased competition between sellers resulting from high inventory levels and low sales activity, benchmark prices across all sectors have experienced downward pressure.
It all points towards one thing; more affordability for you as a buyer especially in the attached and apartment segments that have experienced the most substantial drops in benchmark prices.
See all of our Calgary Real Estate Market Updates for statistics, trends and analyses today.
#3 – More negotiating room
Calgary`s residential market is currently a buyers market. A combination of high inventory levels and low sales activity means that many home sellers are looking to gain that extra edge on the competition – even if it means cutting the price further during negotiations.
This is where using an experienced real estate agent will come in handy as they should know how to navigate the negotiation process in the best possible way with the seller.
For example, a new listing (less than two weeks old) is likely to get more offers if it is appealing and priced reasonably and putting in a low ball bid may not create the best results.
On the other hand, a home that has been on the market for several weeks may present an opportunity to put in an offer a bit lower than the asking price with a higher chance of it being accepted. You just never know until you try!
It’s important to remember that the real estate market, like the economy, fluctuates over time. Just because benchmark prices have taken somewhat of a dive over the past several months doesn’t mean that all confidence should be lost in Calgary’s long-term prospects.
Depending on your real estate goals, you could very well benefit from making a move in today’s buyers market in two, five or ten years in the future and owning always beats renting for long term wealth creation.
This is why it’s so important to work with an experienced real estate agent to help guide you every step of the way – which includes receiving advice on current market trends and how you should navigate the market if you do decide to make a move.
Happy house hunting!
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