01 Dec Why this is the best time to buy Calgary Real Estate
Are you looking forward to buy a new Calgary luxury home now? Do you already have a home but intend to move now? If this sounds like you, then this is the best time to buy. There are several factors that are currently affecting the Calgary real estate market which indicates that this is the best time to buy. One of the major factors is the low interest rate. Analysts suggest that they are likely to rise in the near future.
When the interest rates are low, it means that many people are able to purchase homes. Banks and other financial institutions have numerous options that are meant to suit the needs of different borrowers. You should also bear in mind that when the interest rates are lower, people can afford to buy more Calgary luxury homes and for the same monthly installment as they would have when the rates go up. You need to ensure that you choose a mortgage that suits your budget and get pre-approved before the rates goes up.
Outlook on interest rates
Market analysts suggest that while interest rates are currently low, we should expect to see an increase in the rate in 2016. When the interest rates go up, the housing market in Calgary will only worsen. According to an Economist who works with TD bank, Diana Petramala, already there is a 4% dip in home prices and there are predictions that the prices will even deepen further between now and 2017. Diana suggests that the prices for homes could increase by as much as 10%. The increase in the mortgage rates could start rising as early as December 2015.
Impact of high Interest rates
The rise in interest rates will definitely affect the demand for housing. However, it is worth noting that there are other factors that will affect the decision to buy. Experts suggest that some of the other factors that will affect the demand for housing include the low rate of unemployment and lower migration levels.
What is happening in Calgary right now is some kind of correction; the higher interest rates will only serve to deepen the correction. CMHC reported in their housing outlook report for fall that we should start to see an increase in the interest rates in 2016 and this is expected to result in a slowdown of the housing market.
CMHC reports that the mortgage interest rates are expected to range from 2.6 to 3.3%. However, the rate for 5 years should be between 4.10 and 5.2%. Even though analysts expect the Bank of Canada to prevent a sharp rise in interest rates, they suggest that the increase in interest rates could result in a decrease in sales by 10 to 15 percent.
Larger selection of housing
In the recent past, there has been a rebalancing of the demand and supply equation. This means that if you were searching for a Calgary luxury home but saw it scooped by someone else, this is the best moment to try to buy again since there is already a bigger resale inventory. Homeowners can now buy any type of homes including Calgary condos. If you want to buy before interest rates rises, you should contact a Calgary real estate agent.