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Calgary’s Drowsy Housing Market

It’s hard to ignore the fact that the real estate market has been off to a slow start in 2018. For the first time since 2010, the sales-to-new-listings ratio dropped below 50%. Despite some cautious optimism that things would pick up come spring time, all signs are pointing to a continued sense of stagnancy. So what does this mean for Calgarians and other Albertans hoping to take enter or stay in the market? It depends.


New but Not Unprecedented

Calgary’s real estate market has show previous signs of struggle, notably in 2008 and, to a lesser degree, in 2010. The drop in housing prices coincided with a low sales-to-new-listings ratio, not unlike the one that we are currently experiencing. That being said, while there appears to be some degree of correlation between the ratio and housing prices, it doesn’t necessarily predict anything with certainty.

The Waiting Game

According to the chief economist with the Calgary Real Estate Board, what really influences the price of houses is supply. When there are too many unsold houses on the market, sellers have less negotiating power and can’t necessarily attract buyers willing to pay top dollar. Ultimately, it becomes a game of wait-and-see, leaving sellers with two options. Some are choosing to drop the prices of their property and take what they can get. Others are opting to sit tight and see what happens before making a decision.

When it comes to navigating uncertainty in the real estate market, it helps to have the right guidance. Regardless of when you decide to buy or a sell a home, it will likely be one of the most significant transactions you will make which means that you can’t afford not to do your research. An experienced real estate lawyer can provide support and offer advice based on your needs which, given the ups and downs of the current market, is a very good thing.

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