According to current economic reports for March 2017, the city of Calgary has seen better-than-usual affordability in the housing market. Positive trends in the housing market show that there are more Calgary houses for sale. Even though the housing market is difficult to predict, there are several ways to analyze how the market functions for future investors, like yourself.
Let's start with the basics:
How Does the Real Estate Market Work?
The term real estate market refers to a property and the buildings and natural resources found on it. The market itself involves the buying and selling of a property. A real estate market also differs from one place to the next, depending on location. Housing prices in one specific geological area in a town are generally not going to be the same in another area.
The market is also extremely dependent upon the supply and demand of the cycle of real estate. Once a pattern of selling and re-selling appears, we can analyze the houses for sale and predict market trends for certain areas.
The Phases of the Market
There are four important phases to the real estate market that are essential to the process of analyzing housing trends.
One can forecast where the market is heading based on historical reports made on the four phases of the market. These phases of the market will help you understand if now is the right time to put your home on the market today. The real estate market, as seen historically in the past, is a cycle.
Henry George proposed the cyclical nature of the real estate market way back in 1879, and we still consider the same model in 2017. There is a high point in the cycle as well as a low point in the cycle, and this pattern has continued to show up time and time again.
The four phases of the real estate market include the following:
1. Phase I: Recovery.
2. Phase II: Expansion.
3. Phase III: Hyper supply.
4. Phase IV: Recession.
A quick summary of the phases of the market:
With the first phase, employment is on the rise and an increase in goods occurs.
There are typically lower interest rates and more businesses are likely to expand, which brings us to the second phase of expansion.
The expansion involves creating an economic boom in which new homes are built and people are investing in real estate at this point. Within the next phase of hyper supply, inventory is decreasing and growth is slowing down. This not a good time to invest in any properties because the final recession phase is coming soon.
A recession is a collapse in the housing market, where people become unemployed and foreclosures are the norm, as with what occurred in the great recession in 2008.
If you want to participate in putting more Calgary houses for sale, perform a general property analysis on where you live.
Things to consider for your property are:
1. Recent renovations?
2. How many bathrooms/bedrooms are in your home?
3. What year was your home built in?
4. What neighbourhood do you live in?
5. How large (in square footage) is your home?
6. How much land does your home include?
7. Do you have a pool, fireplace, garden?
8. Is your home close to a major city for transportation services?
Look at Homes Around You
What did your neighbour's house sell for?
It's important to get a grasp of what other houses are priced at to compare listings. Pay attention to the local market in order to accurately compare your two-bedroom house to other recently sold two-bedroom houses. If you didn't already know, your geological location can factor into current home prices.
To find an accurate comparable price for your home, do some research.
- Check out past listings within a few miles of your home.
- Find at least 3-5 properties with similar characteristics to your home to determine a suitable price.
- Check for expired listings on houses in your area to set an accurate price for your home, so you don't accidentally price it too high.
Tools for Real Estate Analysis
The Canada Mortage and Housing Corporation has the right housing data reports to guide you on the right path to determining a listing price for your home. They offer objective research through their housing market information portal that hosts vast collections of stats on the latest housing data in Canada.
We also offer our own tips for successfully buying a house in Calgary for all first-time home buyers. Avoid costly mistakes by using these two powerful real estate tools to properly analyze the market.
Calgary Houses For Sale
Homes in the Calgary area are becoming more and more affordable. The high demand for Calgary houses for sale means you have a greater chance of selling your home if you live in the area. To find the latest listings we have a search engine in place for conducting detailed research on all prospective sales. Set your minimum and maximum prices, plug in how many bedrooms and bathrooms you need, and any other specifics using our data service.
Set your minimum and maximum prices, plug in how many bedrooms and bathrooms you need, and any other specifics using our data service.
To review what we discussed about analyzing the real estate market and Calgary houses for sale in a nutshell...
1. Don't overprice your home.
Yes, we all think our houses are wonderful and you deserve to price them accordingly, but a high listing can cut your chances of seeing any action.
2. Respect the cyclical phases of the real estate market.
Although we are fortunately far away from the housing market collapse that hit in 2008, stay wary of the cycle of the market. We are currently seeing active expansion in the supply and demand of housing, but don't enter a market that isn't working.
3. Consider what your neighbourhood houses are selling for.
Do research on 3-5 homes within a few miles of your home to help you set a comparable listing price. Remember not to overprice if you are seeking a quick turnaround!
4. If you happen to be a first-time homebuyer, follow all of the aforementioned tips listed in this post and you can quickly find a new home.
5. Are you willing to put in time and effort doing research on how to buy a home or sell the one you are currently in?
Make sure you are capable of taking on the responsibility that comes with buying and selling a home. However, if you need some assistance throughout the process, feel free to reach out to us.
If you want more information on everything real estate from someone with over 30 years of real estate experience, contact the Waller Real Estate Group today.