The real estate market can be an intimidating place to navigate, especially for first time homebuyers. There are a lot of predictions in the real estate market for 2015 in relation to dropping oil prices, but overall economists seem optimistic. In a report released last week by ATB Financial, chief economist Todd Hirsch says he sees the dip in oil prices as short-term and believes in a year we will look back and see it has a lot of fuss about nothing.
Here are a few reasons purchasing a home should be in your plan for the near future:
- Current low interest rates allow buyers to get more house for their dollar.
The Bank of Canada has set rates well below their estimated neutral level in order to encourage consumption. A neutral level is considered a long-run rate consistent with economic growth, corresponding with full employment and stable inflation.
Canadians will see interest rates dip to 0.75 per cent, from one per cent, in order to ease the impact of the dropping oil prices on the Canadian economy. Economists say this is an indicator low interests rates will be here for a while longer. It's time for homeowners to start shopping for new mortgages, and for new homebuyers to jump in the game.
- It's predicted there will be a slow growth on the price of homes in 2015.
CREB's 2015 Economic Outlook and Regional Housing Forecast report states that weaker economic conditions will result in an increase in supply in the housing market. CREB president, Corinne Lyall says more supply on the market isn't a bad thing because buyers will have more choice in all price ranges.
Phil Soper, CEO at Royal LePage agrees this is positive and says slowed growth in the price of homes will be a welcome sign for many people, including first-time buyers who have been frustrated by a hyper-competitive market and escalating home prices.
- Experts say Calgary is a great city to invest.
Calgary was ranked as one of the top three places for long-term real estate investments, along with Vancouver and Toronto, according to a new study by Grosvenor, a prestigious property developer in the UK. According to the survey, the most resilient cities are the best to invest in, which is determined based on climate, resources, environment, infrastructure and community. Grosvenor has been investing in real estate for over 300 years and has a solid reputation. Calgary has been attracting more and more attention from global investors due to its economic prosperity and optimistic outlook on the future.
Real estate is a tough game to play, and there are definitely some differing opinions when it comes to the outcome, but overall experts are predicting positive things for the real estate market in Calgary. Do your research and make a decision based on what is best for your unique situation.
Sources:
Justin Havre: Calgary is One of The Top 3 Cities for Long-Term Real Estate Investment
CREB's 2015 Economic Outlook and Regional Housing Forecast
Daily Herald Tribune: Alberta Economy Headed to Downturn
Blog Topics:
Calgary Homes, Calgary Townhomes, Homebuying Tips
