The tide is turning towards a sellers market... for NOW!

Written by Gemma Beierback

A resurgence in the housing market is just what the doctor ordered for many sellers who have been waiting to get their properties sold and be able to move on. The later part of 2008 and most of 2009 was very slow going for sales in the Calgary and area marketplace. Home values were significantly eroded and many home owners were left in a negative equity position, which either precluded them from selling or forced them to sell at a loss. All indications are the 2010 will be a reboot in the local housing market and it seems to be off to a great start.
Interest rates are still very low and buyers are in the enviable position of being able to profit from both lower housing costs and reduced borrowing costs. A general confidence in the economic forecast is also stimulating buyers. Combine these factors with a listing inventory which has been dramatically diminished and you have a recipe for an emerging sellers market.
Over the past year I have been continually encouraging those people who follow my blog to buy some real estate. I have insisted that this was an opportunity to create wealth through real estate. We know from plentiful historical data that the real estate market does go through cyclical peaks and valleys but the next peak has always eclipsed the previous one. There is no reason to suspect that this cycle will be any different.
Calgary is a strong diversified marketplace with a variety of favourable geographic and economic factors which combine to create a strong real estate marketplace. If we compare property values in Calgary with other major Canadian centres like Toronto and Vancouver we can see that there is still significant value in this market and possible opportunity for beneficial appreciation. I see more and more buyers approaching the 2010 real estate market with excitement and anticipation ready to profit from the reduced prices. There are still good deals available and this is definitely a perfect opportunity to start the process.
In the passed few weeks I have been involved in several multiple offer situations and in speaking to my colleges I am not alone. The market it responding to the favourable selling conditions and buyers are noticing a trending market and taking action. I think it is unrealistic to predict that we are heading back to marketplace similar to the 2006-2007 frenzy. However, it would be irresponsible not to notice the market shift and respond to it accordingly. The economic pundits are predicting roughly 5% appreciation this year in the Calgary and area re-sale marketplace. Sellers beware though, don’t wait to list your house in the hopes of capturing all that appreciation. I predict that the pent up seller demand will explode by the mid point this year and we may see an increase in inventory as sellers who have been on the fence decide the time is right! Get a REALTOR® working for you so that you get the timing right and seize this real estate opportunity whether you are buying or selling.

Gemma Beierback