What does it mean when someone says it’s a “buyer’s market” or “seller’s market” regarding new home sales? There are a number of calculations that go into the decision to call it one or the other, but the biggest one is whether or not home sales are moving briskly. Right now, it’s a buyer’s market in Calgary because of the many new communities being built combined with record low interest rates on home mortgages.
Buyers vs Sellers
In a seller’s market, there’s great demand for quality homes and sellers may get several offers on their homes, even selling them the first day they are listed. In a buyer’s market, the number of available homes exceeds the demand for them and buyers have the ability to negotiate the price and ask for extra concessions. Another perk is that buyers have a wider range of homes from which to choose.
There’s one thing to remember in a buyer’s market like the one we are experiencing now: you should know what you want and be ready to claim it. Before you go looking, make sure that you have a list of the most important things you want to include in your future home. When you find the right one, be ready to act fast before someone else decides it’s their dream home and puts down a deposit before you do.
Abundance of Amenities
Construction in the suburbs has been spurred as the government keeps pace with the infrastructure needed for new communities. There are several brand-new schools and others in various states of completion in outlying communities of Calgary. Recreation centres abound and retail outlets are following the exodus to the hills and lakes of the suburban frontiers. This availability of so many new homes favours the buyer.
Do Your Research
Modern technology also gives the homebuyer an edge when it comes to searching for the right place. There are apps that help in the search for a new home by identifying open houses nearby. You can even search by MLS number to view vital statistics on a home. After that, look up the Google satellite and street views of the house and you’re all set!
Available tax rebates that builders pass on to buyers make home sales more attractive too. Millennials are especially well served by the first-time-homebuyer tax credit of $5,000. More established buyers can access their RRSPs for a down payment without penalty and with favourable payback terms. If you add in credits for buying new, energy-efficient appliances, buying a new home is a great deal for the buyer right now.
The rate at which new homes are selling is a major part of determining whether the current market benefits buyers or sellers. In this case, a surge of resale homes is slowing down the pace of new home sales. There are also more apartment vacancies to choose from, causing those who are on the fence about buying to delay. Although sales are sluggish in 2016, the forecast is for new home sales to rebound in 2017 because of improvements in the economy and other factors.
Let’s add up the reasons that today’s housing climate is a buyer’s market:
First, the law of supply and demand favours buyers because there are so many new homes on the market that haven’t yet sold. Second, home mortgage interest rates are the lowest they’ve been in a generation. And lastly, there are a plethora of tax rebates and credits available for new home purchases. When you add in the modern tech that makes research easier and benefits the homebuyer, you have a recipe for buying your home now, while buyers have the advantage.
If you’re thinking about buying a new home, we encourage you to come out and visit one of our many Sterling showhomes and speak with one of our area managers. They can answer any questions you have and can connect you with one of our preferred lenders who can discuss financing options with you too. Check out our handy printable showhome map to help you locate our showhomes in all the communities we build in.
Photo credit: house & dollar signs, home search