Is it worth waiting to buy a home in Calgary?

As a potential homebuyer in Calgary, you may be struggling with the decision of whether to buy now or wait until prices drop. It's a common dilemma that many buyers face, especially in today's volatile real estate market. While there are advantages to buying in the current market, there are also some disadvantages to consider. In this blog post, we'll explore these factors and help you make an informed decision about whether to buy now or wait.

Advantages of Buying in the Current Market

One of the biggest advantages of buying in the current market is that interest rates are still relatively low. This means that you can secure a mortgage with a lower interest rate than you might be able to in the future. Low interest rates can save you hundreds of dollars a month on your mortgage payment, making homeownership more affordable.

Another advantage of buying in the current market is that there is a greater selection of homes available. With more homes on the market, you have a better chance of finding a property that meets your specific needs and budget. You can take your time and shop around until you find the perfect home at the right price.

Disadvantages of Buying in the Current Market

One of the main disadvantages of buying in the current market is that prices are high. In Calgary, the median price of a home is $465,000, which is out of reach for many first-time buyers. If you're on a tight budget, you may have to settle for a smaller home, less desirable location, or a fixer-upper.

Another disadvantage of buying in the current market is that there is a lot of competition for homes. You may find yourself in a bidding war with other buyers, which can drive up the price of the home and put you at a disadvantage. If you're not prepared to pay top dollar for a home, you may need to wait until the market cools down.

Will Prices Drop in the Future?

The million-dollar question on every buyer's mind is whether prices will drop in the future. While no one can predict the future with certainty, there are some factors that suggest prices may be on the rise. For example, Calgary's population is growing, and there is a shortage of housing to meet the demand. Additionally, interest rates are likely to increase over time, which will make homes less affordable.

That being said, there are also factors that suggest prices may drop in the future. For example, the economy is still recovering from the pandemic, and there may be a slowdown in the housing market as a result. Additionally, there are concerns about an oversupply of homes, which could lead to a drop in prices.

Ultimately, whether you choose to buy now or wait until prices drop depends on your personal circumstances and financial situation. It's important to do your research, consult with a real estate professional, and make an informed decision that meets your needs and goals.

Conclusion

In summary, there are advantages and disadvantages to buying in the current real estate market in Calgary. While interest rates are low and there is a greater selection of homes available, prices are high and there is a lot of competition for homes. Whether prices will drop in the future is uncertain, but there are factors on both sides of the argument. Ultimately, it's important to weigh the pros and cons and make a decision that's right for you.