Most people of Alberta regard purchasing a house a financially-sound investment decision. A recent Annual RBC Homeownership Survey suggests that 89 per cent of the Albertans consider buying a home is a good investment, which is supersedes the national average of 84 per cent.
But the percentage of people with the intention of buying a house in Alberta has dropped somewhat from 31 to 22 percent within the last year.
According to RBC’s vice-president and Mortgage Specialists Don Peard, this is an expected result from the study. As the changes in regulations governing mortgage rules and the economic situation has compelled a lot of Albertans to re-evaluate their decision to take an interest in buying a home.
The optimistic news is that people who have already invested have faith on the value of their investments and their ability to manage their mortgage obligations.
The poll also revealed some interesting statistics where it was found that 71 per cent of Albertans regard their community housing market as overpriced as opposed to a national average of 73 per cent. Nearly half of the Albertan population (49%) regards the housing market as balanced, which is more than the Canadian average of 40%/.
As per the statistics revealed by the Calgary Real Estate Board, so far this year, until March 25, the number of MLS sales in the city has increased by 3.45% up to 4,677 sales. Along with that, the median sale price has increased by 5.88% to $ 396,000 and the average sale price has also risen by 9.12%to $ 453,710.
Some other information was also revealed by the poll which is vital for the housing industry of Alberta. 48% anticipate the mortgage rates to go up next year and 45 per cent expect it to remain constant and only a minority of 7 per cent thinks that it will dip next year. As per as housing prices are concerned, 50 percent expect it to rise next year, while 32% expect it to remain the same and only 18 percent foresee lower housing prices. 74% people also think that regulatory changes introduced by the government will change the timing of people entering the housing market.
Across the nation, 40% Canadians who are planning to buy a house within the coming years will be first-time home buyers. Most people are just sitting back and watching from the outside for the market to settle down, and 15% are likely to take the plunge within the next 2 years. This is a 12 percentage-point dip from the high of 27% last year and reflects the overall gloomy market scenario.
For more information on which way is real estate heading in Calgary. Please contact the author and he’ll be happy to answer any questions that you may have regarding the condominium market or luxury market in Calgary. Homes are still very price sensitive in Calgary, so having access to the right information is the key to your real estate success in today’s market. Regardless if you’re looking for an investment property or a high end luxury real estate, we can help!