The holiday season has come and gone, and now it’s time to turn our attention to the big plans ahead for 2018! If you’ve been contemplating whether or not this is the year that you buy a new home, you’re not alone. There are so many factors that need to be considered when determining the right time to buy including the economy, prices in your city, and expected industry growth. With the recent recession now fading into the past and prices anticipated to increase, 2018 is looking like a great time to make your move. Here, we provide you with just a few of the reasons why.
2017 was a year of economic recovery. For the first time in 3 years, Calgary has actually seen economic growth and the Conference Board of Canada (CBoC) expects it to be continued through 2018 at a steady rate of 2.2%! This forecasted growth is great news for everyone in Calgary as it means the potential for more job opportunities and higher income.
An improved economy has positive effects that ripple throughout every level of the home buying process. Economic growth leads to increased development, competition and most importantly for you, customer purchasing power.
As the city finishes its climb out of a challenging last few years, all trends are pointing to a stronger economy and in turn, a great opportunity to buy your new home!
Continued development and greater selection
The return of economic growth is great news for the development industry; much of whom have been waiting for the opportunity to ramp production back up. With the promising forecasted growth, it is expected that developers will increase their output as well. As the CBoC notes, residential development often follows the trend set by oil prices. With oil expected to go from roughly $55 to $70 per barrel over the next few years, it can be expected that residential development will follow the same trend.
At the end of 2017, there was already a large surplus of available homes. With the anticipated increase in development, there will be an even larger pool of available new homes all over Calgary. This means that as a buyer, you will have a great selection of home options available to you.
Very few housing markets offer the location and cultural diversity that is offered in Calgary. You can find a home for your family anywhere in the city and in 2018, you have a great selection, making it easier to find the home of your dreams!
Increasing home prices
Year over year, home prices across Canada are continuing to rise and Calgary is no different. In the single-family and multi-family home sectors, it is expected that new home prices will continue to increase in 2018 and beyond. Though this means you will be paying more for your home, it also means that the value of your home will increase moving forward.
With prices continually trending up, this is the perfect time to buy! Your new home will continue to rise in value, meaning when you decide to sell in the future, it will be worth more than you bought it for.
Mortgage Rule Changes
As of January 1, Canada has implemented new mortgage rules that significantly impact the purchase of a new home. With the new mortgage regulations, buyers can rest assured knowing that they are getting a safer and more secure mortgage agreement, as they have passed the new stress test and have successfully acquired a mortgage. The new regulations make it less likely that you will get a mortgage that may become unaffordable or unmanageable. In other words, new buyers are less-likely to become house poor.
To learn more about the new mortgage regulations, check out our December blog: https://crestmont.qualicocommunitiescalgary.com/Post/How-the-New-Mortgage-Rules-Will-Impact-Buyers-and-Lenders
After a 2017 filled with recovery and steady growth, 2018 is poised to continue the positive trend! If you’ve been waiting for the right time to buy your new home, there is no time like the present! With the expected economic growth, vast home selection, rising prices and new mortgage rules, all signs are pointing to 2018 as the year that you should make your big move!