Reports that surfaced in October suggest that the housing market in Calgary, Alberta is currently at a price hike, which is sending people on the fringe between buying a house now or waiting for rates to subside. This is a constant debate in the real estate industry, where some people advise that people should take the leap while the prices are still low, and others claiming that waiting for a better window is the way to go.

The rise in the housing market is a simple matter of economics; as the supply goes down (Calgary home inventory is low in all categories), the demand will rise. This demand can only be offset by allowing the prices to increase as well, thus the national price increase of 1.2% to 4.1% within the third quarter of 2013.

Advocates of securing your home purchase as soon as possible say that the soaring prices of homes and mortgages will only increase in the coming years. Hence, it should be best to get yourself started now, and have it refinanced should the market begin to subside significantly.

Some people on the other hand argue that the risk of the market soaring “too fast, too high” is unlikely. One of the grounds for their argument stems from the fact that as homebuilding improves, supply should gain a better foothold, thus eliminating excess demand.

 


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