Will the Real Estate boom continue?
Diane Kelly

That's a question that is on many people's lips these days. To really understand the answer to that question you have to also understand the reasons that brought about this very active real estate market not only in Calgary, but in most of Canada in the first place.

There are a variety of both economic and demographic factors that have all come together at one time to create today's "hot" real estate market. On the economic front, the cost of lending has never been better in recent memory. Low mortgage rates have made home ownership an affordable option for most working people, particularly in major urban centers such as Calgary, where high rental rates can often equal or even exceed the carrying costs of owning your own home. This increases demand on a relatively limited supply of inventory, delivering the expected result of also increasing housing prices. Although the market has now largely accounted for a somewhat pent-up demand for housing from people who postponed their decision to buy in earlier years, the laws of supply and demand will still keep the market active as long as interest rates stay low.

On the demographic side of the equation, the population in Calgary is growing. It is also aging, and in this case that has also resulted in demand for housing. More people are living longer, and a great proportion of the population is in its primary earning years, when they are in a position to make their dream of home ownership a reality. As Calgary's  baby boomers age, they are also coming into inheritances from the generation past. That sudden influx of new, disposable income can put them in the market for additional real estate investments, either in income properties or recreational properties such as cottages and ski chalets.

Right now, all factors have converged to create a strong real estate market, with excellent return on investment for sellers, while still providing an affordable housing option for buyers. It's the best of both worlds, and as long as interest costs remain low and demand remains high, it should continue strong for months to come. However, like all things in life - and the economy - real estate is a cyclical business, so don't put off your decision for too long!

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