Looking to buy in 2017? If you’re in the market for a new home there’s reason for optimism. In light of the recent economic slowdown, home buyers can look forward to several unique opportunities that can benefit them both in the present and future. Here’s a glimpse into Calgary’s housing market forecast for 2017.
The economic outlook in 2017 is the first reason for optimism. Oil prices are anticipated to continue to rise slowly but steadily in 2017, which will usher in more stability. This is welcome news for Calgarians, but what exactly does it mean for the housing market?
The economy across the province of Alberta has actually meant a favourable housing market for buyers. The downturn has led to a few particular benefits.
First, buyers have been given extra time to make their decisions. Low mortgage rates for extended periods has provided homebuyers with ample time to search for the home of their dreams and take advantage of the benefits of a weak market. This rings especially true for those looking to buy in winter, a slower season.
Second, a slowed housing market has led to a host of price adjustments and upgrade packages for prospective homebuyers. Overall, homebuyers are receiving more value for their money.
While the housing market has remained slow for some time, the provincial forecast suggests things are going to begin to improve sooner than later. With Alberta’s economic projections pointing up, the housing market stands to speed up once again.
For prospective homebuyers, this means activity is likely to heat up, prices will rise, and interest rates to follow those trends in the long term. If you’re a first time home buyer, taking advantage of a buyer's market can pay off down the line, making it a smart move to buy sooner than later.
Calgary and Alberta are beginning to improve economically, and there are positive signals for home buyers at the federal level as well. Mortgage rules are changing, and in October 2016, the Canadian Mortgage and Housing Corporation (CMHC) introduced changes to mortgage risk assessments and lending practices.
In short, rules around the mortgage rate stress test were expanded to further reduce risk to homebuyers and lenders, and new conditions on low-ratio mortgages were introduced. This means CMHC’s new regulations point to increased stability in the housing market – something that can benefit everyone.
All things considered, the economic outlook for Calgary, and the province of Alberta as a whole, provides reasons for optimism. For home buyers, a turnaround is inevitably on the horizon. While 2017 might not bring major growth or a booming housing market, it does point to stability, which suggests larger growth is around the corner. Before missing out on some unique opportunities, it’s worth weighing the pros and cons of buying a new home in 2017.