20% Further Price Reduction?

In a recent Calgary Herald Article that was published this past weekend (Saturday September 13th) stated that a couple realtors in Calgary said that the home prices would be decreasing another 20% over the coming year.  One agent stated…

“Prices went up nearly 100 per cent in 2-1/2 years,” he says. “Let’s just say the ‘why’ for the decline can be found in the words, ‘Too far, too fast’.”

I do agree that there was a huge increase, but I do disagree that it was too far, too fast.  If we had increases like this over 5+ years, than yes, but in this case, the market is adjusting and finding it’s new bottom.  Every booming economy has it’s moments of breathing.  The market is alive and therefore needs to breathe.  As a seller in this market you really need to be on your game and know your ’stuff’.

Seller’s also really need to think like a buyer in this market.  By this I’m saying that you need to put your feet in the shoes of a buyer, and clearly understand what they think, so you are able to market to them properly.

The market is changing, and will do so for a while. Prices will most likely decline, to what extent and for how long?  Great question… don’t know…  When the market finds it’s new bottom, then we will be able to for sure say… “The Sellers Market is Back”.

On the flip side, it is truly a great time to purchase a home.  If you are planning on living in the home for 2+ years, there are some great deals out there.  If you are looking to do investments… again, great time!  If the investment will be a flip of a home, you might want to stear away from that right now, but for long term rentals… that’s the place to be!

Cheers!