Many people are discussing the slowing down of the Real Estate Market in Calgary right now, whether they are in the market for a home or simply chatting in the grocery store line-up. A recent article published by the Calgary Herald on November 4th, 2008 listed several statistics comparing this past month with that of May 2007 and the results are clear.
Currently single family homes are selling at a ratio of 1 home for every 6.74 on the market. Back in the mayhem of May 2007 this same comparison was 1 home for every 1.86 on the market.
Realtors have said that October is historically a slower month in terms of sales although certainly the ever changing economy and uncertainty in the marketplace have put many home buyer's on edge.
The bright side to all of this is that for people looking to enter the market they would be doing so at a great time. Selection is abundant, buyer's are in control, and mortgage interest rates have remained relatively stable. Having said that, while the Bank of Canada has certainly lowered their "prime rate" to all-time lows recently, financial institutions have responded by removing any product which offers a variable rate at a discount. Rather, a 1-2% increase will be tacked onto prime rate.
I would caution new buyer's on trying to 'time the cycle' which could be compared to trying to catch a falling knife - next to impossible. Buyer's need to realize that saving 5-10K on a home by waiting may mean a 0.2% increase on their mortgage rate which could be significant when looked at over the term of a mortgage.
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