If you regularly walk through your neighbourhood, you might notice a house listed for sale last week has already sold this week. With a booming Calgary real estate market, now might be the time for you to join in as a buyer. In this article, you will first read all about how the market got to where it is. Then we’ll go over a few key reasons single-family homes are in high demand. Lastly, we explain the mortgage pre-approval process so you may take advantage of the current market.
How Did We Get Here?
So how did we get here? How and when exactly did the Calgary real estate market start booming again? Despite the pandemic, current trends show the market will remain strong throughout 2021. Three things factor in building the housing demand in Canada, including:
• High Rates Of International Immigration (Excluding 2020)
• Low-Interest Rates
• Growing Middle-Aged Millennial Population
The Calgary real estate market has seen high demand for single-family homes. Many young families or couples want to take advantage of low mortgage rates. However, with demand much higher than supply, this can cause stress for potential homebuyers. Many feel the urgency to make decisions swiftly in fear of losing out on their new dream home. Moreover, the Canadian Real Estate Association states the number of newly listed properties rose by 7.5% from February to March. While the market remains hot, they forecast fewer sales for 2022.
Single Family Home Demand
Single-family homes are in high demand. Due to the Covid-19 pandemic, we are all spending a lot more time at home. With many working from home, the shift to investing in personal space has risen. This means single-family detached homes are in high demand. Many are also considering moving out of the downtown core. Instead, they’re looking for a more spacious, quiet neighbourhood.
It’s no secret that financial strain has hit many individuals especially hard this past year. Those who are minimally affected may have found their overall spending has gone down. With no holidays abroad or other large expenses, this money may go towards a down payment.
Other Ways To Enter The Market
There are other ways to take advantage of the market without having to move. For example, a second or vacation home. With low-interest rates, you could find your weekend getaway home.
Buying a rental property is another way to create wealth. A minimum down payment of 20% of the purchase price is required. Our team has assisted many Calgarians with this investment strategy.
Qualifying For A Mortgage
As we mentioned, buyers are taking houses off the market at record speed. Being prepared before you go property hunting is important. Please make sure you get a mortgage pre-approval first. You’ll need to organize several documents. A pre-approval shows how much you may borrow.
Why Get A Mortgage Pre-Approval?
Due to current Calgary real estate demand, you’ll want to do everything you can to be an attractive buyer. With low mortgage rates, competition for a home can be high. Showing you did your homework and proving you have been pre-approved for a mortgage will set you apart.
Pre-approvals help to make the financing process go more efficiently and smoothly. It reduces the potential for any unnecessary stress as well.
A pre-approval could also make negotiations easier. When the sellers knows you’re pre-approved, they could be willing to compromise—advocate for yourself. You could get what you’re asking for with a better price and terms.
Working With A Mortgage Broker
Making the biggest financial decision of your life is no small task. The added pressure to move quickly can make things extra stressful. So why make it more stressful by trying to do it yourself? Work with a mortgage broker to secure the best mortgage rate for your situation.
Why Choose A Mortgage Broker?
First, they have extensive insider knowledge of the fluctuating market Buyers are snatching up homes faster than before, meaning you need to come prepared.
They will help you through the process of qualifying for a mortgage. Our team will guide you through the process each step of the way. You don’t want to feel disappointed finding your dream home, only to be turned down.
By filling out a simple online mortgage application, your broker can get right to work. This will also cut back the time you may spend trying to get everything together yourself. Meaning you can get out in the market faster.
A mortgage broker also plays an important role in ensuring you get your loan. They can help negotiate with various lenders, so you don’t have to. Additionally, they can get you the rate that best fits your needs because they know the industry.