Calgary’s Housing Shift: First-Time Buyers Enter a Softer Market
After years of a challenging housing market, a notable shift is underway in Calgary. Realtors are reporting a surge in first-time homebuyers, spurred by a combination of factors including government incentives and a cooling rental market.
The Rise of the First-Time Homebuyer
Realtors Anna Kaufman and Rut Kaufman-Aronovich have observed a distinct change in their clientele. Properties that previously attracted investors or those looking to upsize are now appealing to individuals entering the market for the first time. This change is particularly noticeable with side-by-side homes in communities like Logan Landing.
Rental Market Dynamics Fueling the Change
The increase in first-time buyers coincides with a growing rental inventory in Calgary. Data from the Canada Mortgage and Housing Corporation (CMHC) reveals a 15% increase in available rental units in March, reaching 3,100. This rise in supply is extending the time it takes to find tenants, now averaging around 45 days, according to the Calgary Residential Rental Association.
Alongside increased inventory, average rental prices are also decreasing, currently sitting just below $1,800 in Calgary. This makes homeownership a more attractive option for those previously priced out of the market.
Government Incentives Play a Role
The federal government’s GST rebate for first-time homebuyers is also contributing to the influx of new buyers. Combined with the softening rental market, this incentive is making homeownership more accessible.
Inventory Increases and Investment Shifts
The number of homes for sale in Calgary has also increased, with approximately 15% more listings this month compared to the same period last year. This increase is partly due to investment properties coming back onto the market as investors witness a reduced rate of return.
Realtor Len T. Wong notes that this shift is creating opportunities for potential homeowners who may not have previously considered buying. “Why rent when you can own?” he asks, adding that current interest rates are also relatively favorable.
What Which means for Buyers
The changing market is expanding options for first-time buyers. Kaufman Aronovich explains that buyers are now able to find properties with yards and more space in suburban areas, something that was previously less attainable.
Whereas predicting the future of the market is impossible, Kaufman advises potential buyers to consider their personal circumstances. “Prices might go up, prices might go down, but the time might be perfect for you.”
Frequently Asked Questions
- Is now a good time to buy in Calgary? It depends on your personal financial situation. The market is softening, and there are more options available, but prices could fluctuate.
- What is the GST rebate for first-time homebuyers? Here’s a federal government program that provides a refund of the Goods and Services Tax (GST) paid on the purchase of a new home.
- How is the rental market affecting home sales? A larger rental inventory and decreasing rental prices are making homeownership more appealing.
Pro Tip: Get pre-approved for a mortgage before starting your home search to understand your budget and strengthen your offer.
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