advantages-building-during-buyers-market-featured-image.pngBuying at the right time is crucial, especially if you’re upgrading to a larger property where you want more control over customizations. If you purchase your new home during a seller’s market (when demand exceeds supply), the sellers have more leverage during contract negotiations. But in a buyer’s market (when supply outweighs demand), you generally have more economic and personal freedom – meaning you can create a roomy house in a family-friendly neighbourhood that reflects your family’s personality and lifestyle.

Let’s take a closer look at the difference between the two market types to illustrate why you should make your new home purchase during a buyer’s market.

Seller’s Market

The term “seller’s market” indicates a time when the number of potential home buyers is greater than the number of homes listed on the market. In this scenario, sellers often receive numerous queries on their properties, which gives them more freedom to set the price that is most beneficial for them. Because of this, home buyers might even end up having to pay more than the listed sales price and probably won’t find any seller’s perks included in the package.

Buyer’s Market

The “buyer’s market” is that period of time when there are fewer buyers than there are available properties. This type of market can also come about if prospective home buyers can’t get the financing they need.

Is Calgary In a Buyer’s Market Now?

Up until recently, the new home market in Calgary was a seller’s market for a number of years. A shortage of properties and high customer demand gave the advantage to sellers during the home-buying process. Currently, the greater number of properties being built means that buyers have more time and freedom and as a result, the sector has now shifted to a buyer’s market.

Why a Buyer’s Market is a Better Time to Purchase

There’s a wealth of great reasons why you should consider purchasing a larger home for your family during the current buyer’s market. Buying a new house is a major commitment, so you want to get as much bang for your buck as possible. Below are just a few advantages:

1. More Incentives

While in a buyer’s market, the ball is in your court during contract negotiations, so you’ll be able to spend less while receiving more than you’d get during a seller’s market periods. This includes the enhanced ability to request bonuses or special concessions from a builder. While you may not get exactly what you ask for, they will try to give you the best deal possible and most will already offer attractive incentives to make your buying decision easier.

2. More Time

There are many advantages of building a new home especially in a buyer’s market. A major advantage is that you usually have much more time to make selections than you do in a seller’s market. You won’t have to worry about rushing to pick the best lot and exterior colours because the demand is lower. With this extra time at your disposal, you’ll also have more time to sell your current house and save up a little extra money.

3. More Lot Options

Building a new home during a buyer’s market gives you better options for your home’s location. You can choose the optimal lot for your family’s needs, while still being in close proximity to great schools for the kids and other amenities.

4. More Customization Options

Building in a buyer’s market also affords you much more influence over your home’s features. You can customize your new home to accommodate your family’s tastes and include all those must-have features you’re sure to want as you upgrade. A good builder will develop a close relationship with you as you finalize your feature selections and see your new home build progressing.

5. Cheaper Financing

In terms of financing options, you’ll have access to loans with reduced interest rates, since banks or other lending institutions are encouraging people to take out loans to boost the overall economy. While in a seller’s market, lenders typically raise interest rates to temper the inflation rates that can go up during times when the economy is high. It’s also a good time for first-time home buyers, many of whom have been renting because of the previous lack of available homes and higher costs.

Taking Advantage of the Calgary Buyer’s Market

Now that the seller’s market has ended in Calgary, the housing sector is rich with building opportunities; interest rates are at a record-setting low; new home building costs are more affordable, and builders are offering better incentives. Knowing the pros and cons of the two market types can greatly assist you in obtaining the greatest bargain as you build a new home for your family.

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