The Calgary Real Estate market is facing further downward pressure on pricing as inventory remains high and sales continue to trend below expected norms for this time of year.
Buyers continue to have the negotiating power.
Prices have adjusted for detached homes most in the North East, North West, South and South East areas. These are areas close to and directly competing with new home construction. Builders are offering some incentives to draw in buyers. The inventory levels in those areas on MLS are missing the new construction numbers in the statistics so it makes it difficult to know how much inventory a seller is competing against in those areas.
Apartments and attached homes also continue to see pricing adjustments, though also area specific with larger adjustments closer to new construction options.
Some of the pace of new home construction should ease in 2019 as noted in permit information for Alberta. Residential permits are down by 6.9% and on residential by 7.7% according to the OWL by ATB Financial.
For those planning to move between homes in the same city or market, the thing to remember is that everything is relative. While your current home may sell for less than it did last year, the property you are considering will also be selling for less year over year. One must remember that the economic factors influencing the market value of your home have a relative impact on the market as a whole.
For example, if you sold your home for $400,000 and purchased a new home for $500,000 you would be adding $100,000 to your mortgage. On the other hand in a previous market you may have sold for $420,000 but purchased for $540,000 with a $120,000 difference. The variance will depend on the community and the adjustments at each price point.
For some families this time may be an easier environment in which to make a move as there is ample inventory and time to make a decision.
It is also very important to speak to your lender before listing your current home for sale. Once you have the information you can make the best plans for you and your family.
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