The real estate market in Calgary, Alberta, has mostly been on a downward spiral for the last two years due to the oil and gas market crashing heavily. The real estate market in Calgary had been on an upward spiral for the longest period of time before oil and gas prices declined, sparking an unprecedented crisis.
The prices and sales of all types of homes in Calgary have been in steady decline since 2014. The construction of new real estate has also stagnated due to the lack of available buyers. Even the luxury market has been deeply impacted due to numerous factors such as people moving away from Calgary, job losses, and a general downturn in the energy sector. Confidence in the market was at an all-time low between the second half of 2014 and the first half of 2015.
October 2016 has been good
October 2016 was the best month for real estate in Calgary since 2014. Property sales were 16% higher than October 2015, and the sales of single-family homes increased by 18%. The increase in sales has been attributed to the changes made by the Canada Mortgage and Housing Corp., to the mortgage rules.
In addition, sellers have lowered their prices in order to adjust to the economic realities of the market. The spike was the highest in the $300,000-400,000 range of houses, which is an excellent sign for the market. It's unclear whether this trend will last.
Good market for first-time buyers
Thanks to the changes made by the Canada Mortgage and Housing Corp., the increased availability of options in the market, and the relatively low prices, first-time buyers have reaped some small benefits. First-time buyers have become increasingly real estate savvy due to the current economic situation, and are better educated about the market.
Mortgage prices are at historic lows, and many people understand that the time is ripe for purchase, especially if the funds are available. Home prices are also unlikely to reduce anymore and there have even been marginal increases in prices in the last two months. In this market, the long-term savings of buying over renting are clear.