REAL ESTATE MARKET IN CALGARY
Looks like demand outstrips supply.
There’s no doubt that the real estate market in Calgary is booming these days. The demand outstrips the supply, so we have conditions where competition between buyers is not unusual. Even though the age of first time buyers is rising overall, first timers in Calgary remain some of the youngest in the country. Thanks to “higher than average incomes” and a “relatively affordable” pool of homes to choose from, Calgary is a good – albeit challenging – place to buy a home.
For certain prices, particularly the $300,000 to $700,000 range that are so attractive to first time buyers, demand is such that bidding wars are common. The Calgary Herald quotes Ross McCredie or Sotheby’s International Realty on the environment in Calgary:
“People feel pretty confident more than any other market in Canada in terms of the future of it,” he said. “The new product that’s out there, the existing product and if you look at all of the data that supports it, it’s not as if you have an over-supply of product . . . Calgary is not that big of a market compared to say Toronto or even Vancouver. You do have a significant demand out there. You’ve got a lot of people looking for high quality real estate. When people make money they typically try to buy real estate.”
When you’re competing with other buyers for your dream home, it becomes even more important to be clear on what you’re looking for and what you’re willing to spend. It’s also imperative that you have a pre-approval in these kind of circumstances. Having your mortgage broker pre-qualify you means that you enter into a negotiation potentially stronger than the other buyer.
If you’re able to pull your finances together quickly, it can mean the difference between getting the house and losing it to someone else. You can also ask your broker for a run down of what kind of paperwork you’re going to need to provide, so that you can have as much ready to go as possible when you start shopping.
A seller comparing multiple offers for his or her home may look first at price, but the quality and preparedness of the buyer can easily become the deciding factor. Having a pre-approval in hand could mean the difference between losing a bidding war and owning the home you’re been dreaming of. If you’re at all thinking about a new home purchase, give us a call to chat. There is no obligation and being prepared can make a world of difference.