Buying Frenzy Settles - Sellers Market Remains
Negative news about the real estate market has put the brakes on many Calgarians purchasing plans, however we are still in a sellers market.
1. January-March we had 32% more homes LISTED on the market. Skyrocketing prices certainly played a role in homeowners decisions to sell. As of May we had a DECLINE of 6% new listings.
2. Median Prices are up about +10% in the Jan and Feb then dropped off to single digit gains from March-May.
3. Months of supply has steadily been increasing from 1 months of supply to 1.7. These conditions still heavily favors sellers.
Sellers considering on making a move this year will on average realize a 10% median price increase in their homes value compared to last year.
Buyers looking for a substantial correction in the market will still see their monthly carrying costs remain similar they were to purchase today. EXAMPLE:
Benchmark price today: $546,000
5 Year fixed today: 4.54%
Mortgage payment(20% Down): $2,427
Benchmark price assuming 10% decline: $491,400
5 Year fixed assuming 50BP increase: 4.54%
Mortgage payment(20% Down): $2,298