Hehe, yes there has been whispers of a price correction a'comin in our True North strong and free, but according TD Economics, our investments in Calgary Real Estate seem to be safe! In fact, unlike most other cities in Canada, we're meant to see a steady and gradual increase. "TD Economics has forecasted that the national average resale price will drop 10.2% over 2012 and 2013. But it looks like Calgary will escape this downward trend largely because it's already gone through much of its correction.
TD Economics predicts the city's average price will rise to $405,800 in 2012, up from $403,700 in 2011. And by 2013, TD economics projects the average price will reach $410,500." We're looking at a 1.7% increase while Vancouver's bloated price tags can expect to see slashes amounting to around 14.8%. Which, if you ask me, is partially because of the Canadian Real Estate climate, but also because hockey fans may or may not have burned much of their city to the ground on an evening that shall not be mentioned here on this respectable Canadian Real Estate blog. (I'm so kidding here. Just looking for an opportunity to make fun of Canucks fans).
I think the moral of the story is the same that it has been in Calgary for years now: slow and steady wins the race. I've heard about price corrections for years now, and still Calgary has remained strong and steady with no heavy duty rises or drops. "So now is the right time to invest while house values remain relatively low", says Sano Stante, president of the Calgary Real Estate Board. I have Clients who are easily spooked by slight differences in the price of Calgary Real Estate month over month, or year over year, but the real story here is not in the home prices it's in Calgary Interest Rates. Which are so low right now that old timers, like my dad, nearly have a coronary every time he sees the postings in the paper. "With interest rates still low and prices having been adjusted, affordability is high so it matches what you would pay monthly for a rental in Calgary," Stante tells CRE Online.
So sit tight Calgary Real Estate Investors! This ride is just about to get exciting! (If by exciting you mean the same old same old).
The Vanderveen Team
Maxwell South Star Realty
Phone: 403.253.5678 Fax: 403.592.6736