Tuesday, October 28, 2008

Calgary Real Estate A Safe Haven?

Calgary real estate still a safe haven
Housing values enjoy steady increase
Appreciation has ranged from moderate levels a decade ago, to huge double digit gains and now declines. Not a steady increase.
"A residential home is the greatest long-term investment vehicle. The cost of land, materials and labour are not going down over the long term . . . The Calgary real estate market has weathered the current economic slowdown well. We've been working towards a normalized market since the first of the year. And slowly our inventory has been coming down and our market sales remain steady from January forward. I believe we'll continue to do so and we're perfectly positioned for long-term investment opportunities right now in this market if someone's looking to buy," said Jensen.
When stating the Calgary market has weathered the current economic slowdown well he is not considering the fallout that is yet to come. Pending sales of single family homes decreased from 334 to 206 in just over a month. Sales appear to have fallen faster than could be accounted for by seasonal factors from 1152 to an estimated 801 (based on the 698 so far this month from Mike's stats).

It is correct that inventory has come down from the peak in May but is up significantly from where it started the year in January.
"We may be in for some continued slower times for this quarter, but I believe this is the kind of market where real estate bargain hunters can find those great deals, but if you're not out there looking you can't find the best deal. And it's hard to negotiate the best deal when the market has turned the corner and everybody's buying," said Jensen. "I believe there are people out there just trying to time the market like the stock market."
This is not considering the people who simply cannot afford real estate or those saving up for a down payment. Finally take a look at some other articles regarding the upcoming market recovery:

From July 5th: Calgary Resale market seen as turning corner.
Calgary Herald had another article from January: Housing market set to catch spring fever.

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