According to a recent RE/MAX report, Calgary's housing market is expected to continue in buyers' conditions into 2016. While the oil prices and economic downturn are the main driving forces in this shift in the marketplace we've had this year, it's actually good news for a lot of sectors.
Though demand has been lower, supply has not increased very much, keeping prices fairly stable overall. It is anticipated that the lower end of the market will continue to be more active than the higher end in 2016, with first and second-time buyers driving demand. [RE/MAX]
The sector being hit the hardest from this shift is high-end properties, but there other areas that are show optimistic conditions from all of this. Mid-level homes have continued to perform consistently on average, leaving both buyers and sellers in this range happy. There's also a large inventory of condos in the Calgary area, so prices are very affordable for those types of homes.
On Friday, it was announced that down payment rules would be changing in Canada, requiring a 10% down payment now for homes over $500,000 (starting February 15, 2016). This will actually not affect the majority of first-time buyers or those looking at condos. Plus, with properties priced lower than average right now, those with job security are looking at the perfect time to get into the real estate market.
Calgarians who work in non-oil related jobs have taken the opportunity to get into the market, and entry-level homes priced under $400,000 have seen the most activity. [RE/MAX]
If you have questions about the information in this blog, or about the real estate market in Calgary, please feel free to contact me.