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Today, we'll discuss some important information for the January real estate market. We'll go over where we're heading in 2016. Knowledge is power. Although things aren't great in the Calgary real estate market, it's not all bad news.
If you plan on selling in 2016, it's important to pay attention to cycles in the real estate market. We saw a lot of layoffs in Alberta in 2015. Similarly to 2008 and 2009, these people will have to go on employment insurance. Considering that we're a year into this depressed oil cycle, that employment insurance will run out on them this year, forcing many people to sell their homes.
We're already in a buyer's market, so when more homes come onto the market this year, home prices will fall.
Here's what you need to know: your house is worth more right now than it will be later in the year. In fact, your home value is at its highest point today. It's going to be awhile before the market recovers. If you want to sell your home, get it on the market before the flood of listings come in the spring. Get ahead of the curve now so you can net the most money for your home.
Mortgage rates have also risen. The Bank of Montreal has raised interest rates about thirty basis points. Higher interest rates mean it's more difficult for people to qualify for a mortgage, which will mean fewer buyers to look at the home. However, it now looks like rates might come down again! What? Talk about a roller coaster. The economy is trying to find its footing. Expect instability in mortgage rates, oil prices and other commodities and therefore jobs and ultimately house prices for the year to come, if not longer.
Of course, some buyers will jump into the market to lock in a mortgage before interest rates go up. If you list now, you have a great opportunity to attract those buyers.
On a bright note, our clothing drive on January 10th was a big success. We collected a lot of clothes for the drop-in shelter here in downtown Calgary. Thank you for participating!
If you have any questions about today's video, give us a call or send us an email. We would be happy to help you!