Is 2015 the Right Time to Buy a New Home in Calgary?If you’re looking to step into new home ownership for the first time, or already own a home but planning to move within the marketplace, then now may be the right time for you to buy. There are a number of factors present in the Calgary real estate market which definitely support the idea of buying a home sooner than later.

Here are just a few.

Calgary Real Estate Cycle

Like its economy, Calgary’s housing market runs in cycles — always has, always will.

While 2014 was a hot market, this year it has cooled somewhat. But sometimes when it is hot, sellers have an advantage since there are not enough homes available for the number of people wanting to purchase. This gives homeowners control, with the freedom to set and stick to their asking price.

At the other extreme, a cool market often means the buyers are in the driver’s seat because there is a larger inventory. Sellers in this type of a market need to be more open to all offers and negotiate fairly to move their homes. Buyers have the time to shop the market, taking time to make a decision ensuring they stay within their budget.

This year’s cooler market comes as welcome news to anyone wanting to buy a home. Since we don’t know how long this downturn will last, anyone considering buying should act before the market begins to heat up again.

Larger Selection of Houses Currently Available in Calgary

Is 2015 the Right Time to Buy a New Home in Calgary?There is more to choose from in today’s market than there was in 2014.

“Demand clearly exceeded supply in the late stages of 2014 in Calgary,” says a report from Fortress Real Developments, adding that the cooling effect of homebuyer demand has contributed to a ‘rebalancing’ of the demand-supply equation.

What this might mean is that those shopping the market for just the right home for their lifestyle and pocketbook only to see it scooped up by someone else, now has the chance — with a larger resale inventory — to take another stab at it.

This growth in new listings has been made possible by current homeowners purchasing a new home putting their existing home on the market. And according to the Calgary Real Estate Board’s economic forecast, the increase in listings “is partially related to the expected rise in new home completions generating growth in new listings.”

Given how tight the real estate market has been in Calgary in recent years, homebuyers are now able to choose from a wider selection of homes. With the large number of different styles and types of homes currently available in Calgary, any potential homebuyers can find that home that’s just what they were looking for.

Interest Rates are Currently Low

Is 2015 the Right Time to Buy a New Home in Calgary?The current low level of interest rates means more people are able to afford to buy a new home.

The interest rates that banks and other lenders offer have countless options to suit any borrower’s need. Pick a mortgage option that fits your budget, get yourself pre-approved, and buy before rates go up.

And don’t forget, when interest rates are low people can possibly afford to purchase more home for the same monthly mortgage payment than they could have when rates were high.

Buying vs Renting a House

Buying, in many cases, is less expensive than renting. Buyers looking to purchase a new home instead of renting stand to benefit from the current market.

Right now, there aren’t enough properties available for everyone, so landlords have no need to reduce monthly rent rates — and this puts renters at an extreme disadvantage, making it difficult to afford the type of rental property or location they want.

So, the combination of stubbornly high rent rates and historically low interest rates make the decision to buy much easier. The monthly mortgage payment on a new home is often less than it would cost to rent a comparable home in this market, allowing people to both save money and begin building equity in their home.

The Population of Calgary is Increasing

Calgary is a big city and despite the reliance on the oil industry, it will continue to grow.

The energy sector will rebound, people will continue to move here and will need somewhere to live. At the same time, those already living in Calgary are always on the move within the housing market, so housing demand will rebound — and grow.

There is also a segment of the home-buying public that is looking for investment opportunities — and will use a cooling market to make that investment.

So, is 2015 a good year to invest? Factors would suggest that it is, but, as always, there are some intangibles. Where are interest rates going? When will the economy begin to come back? Where will housing prices be?

Currently economic and demographic factors make this year the best time to purchase a newly-built home. Buying now while there are still plenty of Calgary homes for sale and the market is cool is an ideal time. The overall outlook for Calgary real estate is still good. Despite the cooling of the real estate market in Calgary this year, home prices in Calgary have still risen by over 300 per cent since 1999.