So I had a very interesting conversation this morning with my colleagues. As the conversation usually goes, there was a lot of talk about the economy, politics, interest rates, and the usual stuff where we try and figure out where this crazy world and our industry is heading. The conversation eventually headed to a point where I was really questioning why there are not more people out shopping for Real Estate.
Seeing that the rates are ridiculously low, and home prices are slightly down from last year, one would think it is a great time to buy. I really cannot help but wonder what is stopping people from taking advantage of the current conditions.
While I understand for a lot of home owners out there who perhaps bought a home in 2007 and the value has dropped, combined with a hefty penalty for breaking their mortgage making it near impossible to sell and perhaps upgrade or downsize, in my opinion the timing is perfect for those first time buyers out there, as well as investors looking for rental properties.
After this brief meeting of the minds I returned to my desk to read an email from one of my favourite business development mangers at one of my lenders, and she had provided this article:
http://blogs.calgaryherald.com/2011/11/06/calgary-housing-market-poised-to-show-strong-price-growth/
It is very short and to the point, but supports my opinion that it is a terrific time in Calgary to invest in Real Estate. If things go as predicted, those looking to make a great return on investment as an investor could potentially do very well over the next few years. For first time buyers it means you can get a lot more house for your money now than you will be able to in say 3 years, plus you will have a greater impact on your overall net worth watching the value of your home increase over time.
I welcome any and all thoughts on this matter, as I truly am curious, what is holding people back? We have our opinions on it here, but it is merely speculating as to the real reasons why.