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 Affordable
Housing in
Calgary?
Diane Kelly
Is now the time to buy a home in Calgary?
That's
a question that is on many people's lips these days. In a word the
answer is YES!
To really understand the answer to that question you have
to also understand the reasons that brought about this very unusual
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 real estate market. On the economic front there was the
downturn in world markets. On top of this house prices in Calgary
had undergone a market correction following a buying frenzy two
years earlier. The result was that home prices came in line with the
market. However even with this market correction, home prices in
Calgary have still risen over 300 percent since 1999! How many other
investments can claim that kind of growth?
For the short term at least
home buyers in
Calgary have a lot going for them. 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 areas such as Calgary, where
high rental rates can often equal or even exceed the carrying costs of
owning your own home.
Although the market has now largely corrected for
the economic downturn. 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 still 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
an ideal real estate market for home buyers, providing strong and
affordable housing options
coupled with low interest rates. It's the best of both worlds! 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!
Diane Kelly is a licensed real estate
agent and TALKCalgary's realtor of choice.
Copyright © TALKCalgary
2000 - 2010
Photography, &
copy
writing by Steve Kelly or as credited.
Calgary Real Estate consultant Diane Kelly, Discover Real Estate Ltd,
Real Estate
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