MORTGAGE Blog & ARTICLES
Mortgage Rates and Affordability trigger Increase in Home Sales in Calgary
Economists have found out that the present levels of housing affordability together with the ongoing influence of lower Canadian mortgage rates have played essential role in creating growth in the local housing statistics. According to Calgary Real Estate Board, a single family residential property sale in the city rises by about 8% in the month of February as compared to the month of December.
As compared to the month of January last year, sales increase up to 4%. Condominium unit sales, which is a small portion of the real estate market declined to 20% compared to a year earlier. More and more affordable housing will keep on attracting homebuyers in the city most particularly as employment in Calgary tends to improve continuously. This was according to Sano Stante, the president of CREB.
Affordable housing is considered to be an imperative component of economic and infrastructure of an established and healthy city and this is also essential in terms on attracting and keeping a diverse workforce ensuring economic vitality and development. The need for affordable housing has become consistent over time. In the city of Calgary, the same level of need were cited so the cit works closely with the government, private sectors, non-profit sectors and its citizens in creating affordable housing solutions.
The median home rate in the city during the month amounts to $390,000 which is slightly higher from the earlier months and apparently down to 2% as compared to the month of January 2010. Prices on condominiums also slipped during similar time periods. Employment figures in this area have also improved though these remain down to 2.6% since their maximum levels in October 2008. Alberta is the only place to witness its employment figures increase after present revision of data by the Statistics Canada.
Decline in the interest rate of mortgages is also another factor that triggers an increase in home sales in the city. It is true that if interest rates will continue with their upward march, mortgages will be ultimately expensive. Good thing is that Calgary displays a decline on interest rates and affordable mortgage rates have become a very essential factor that drives local housing recovery. With reasonable rates, man property buyers will be enticed to purchase homes in Calgary.
The affordability and low mortgage rates enables home buyers to access affordable housing and add to the record of individuals who tapped on home affordability options. Mortgage rates and affordability have indeed boost home sales in Calgary. This reflects a positive scenario in the local real estate market. Real estate experts would agree that increase in home sales in Calgary could mean better opportunities and bigger investments.
The Canadian housing market remains well-balanced and healthy as well despite substantial discrepancies across regions. The primary potential flashpoint is that prices in Calgary have become very affordable allowing individuals to explore housing options and access affordable homes. This is such a positive indication that homes for sales in Calgary are not really the ones you cannot afford. You actually can purchase a home without really spending that much.
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