Waking up from a winters hibernation, sales of upper end homes appear brisk in the wake of an overall market slow down. Favorable mortgage rates and incentives coupled with affordable price fuelled the Calgary real estate market early this year. But after favorable mortgage incentives expired, the resultant buyers rush dried up and the listings that were flying off the shelf have been piling up over the past months. Recently the inventory count has been rising in favor of a buyers market.
Those earlier incentives caused traffic for first time buyers’ in the low to mid range of the market. The recent activity in the upper market could be attributed to the subsequent move up market (those that sold their mid-entry level homes now moving up) and the further implication that the upper market buyer is less affected by the downturn in the economy. As prices in the upper market continued to adjust downward, there reached a point this spring where this pent-up demand moved into the market absorbing this well priced product in the upper range. The point is that there is an overall abundace of inventory in the market and it’s continuing to grow across all price sectors. The homes recently absorbed in the upper end of the market were the best remaining after a marathon of price reductions over the past year. The opportunity for Sellers continues to exist across all price sectors provided homes are priced accordingly and marketed with aggresive exposure. For Buyers the combination of still low interest rates combined with moderate prices makes the climate right for jumping in now before interest rates and homes prices increase. For more information, see the Calgary Real Estate Board news release and statistics for July 2, 2010