Did we know prices would basically hold? Yes, we did.

There were absolutely no economic fundamentals in Alberta that would point to a true crash. It was all headline talk and centred on the national picture, not ours.

Back to that quote – ‘Don’t wait to buy real estate, buy right estate and wait’ – lets continue painting that picture...

SCENARIO 1 - Over the 5-year term you’d pay 91k in principal down on your home.

SCENARIO 2 (now) - You’ll pay down 76k in principal. It’s kinda close but it’s still 15% less, or about 15k.

And furthermore...

SCENARIO 1 - Over 5 years you would have paid 62k in interest.

Now, in SCENARIO 2, you will pay 107k. This is a whopping 72% increase, or 45k. Ouch!

I share all this as a present-day, real-world scenario worth paying attention to. It is very rare – and history has proven it time & time again – that it doesn’t pay to buy now, versus waiting. It literally never happens unless you are looking at a very short 1-2 year timeline to enter and exit the market.

"It is very rare - and history has proven it time and time again - that it doesn't pay to buy now, versus waiting."

So, yes, the saying remains true – looking long-term, always buy real estate and wait. Don’t sit on the sidelines hoping for a better time.

Okay, I think you get my point, so let’s finish now with the third P – Projections!

What is going to happen now? I would challenge you, coming off my second point – “Does it really matter?”

If you are interested to own real estate now & into the future, it will remain a positive thing to do.

But further to that, these are a few things I’m expecting to see:

We will see slight month-over-month price declines from now through to spring. I believe that, as a whole, we could see another 2-5% price easing before we commence with the next spring market.

Now, this will be different for every price point & property type. Most, if not all, will likely be felt in the detached market. As affordability continues to be a driver, more people will look to more affordable options like semi-detached homes, row homes & apartments.

And this is exactly what Augusts’ data shows. The semi & row home market is very tight right now. You won’t see much in the way of deals at all. So much so that the sales-to-new-listing ratio has actually increased this month.

Which simply means that the amount of sales relative to new listings is increasing.

As well, seasonally right now we will see fewer and fewer new properties come to market in the back half of the year. But this is happening while our sales are still near record high numbers.

These two things coupled together will keep condos, rows and semis all in a seller’s market.

The comeback of the condo remains in full swing. Year-over-year sales are up 58% and this trend will likely continue. Watch this market continue to tighten as we proceed to Christmas.

So, I expect our Greater Calgary Market to continue its strength. We have a lot of economic positives going on and we have a supply/demand situation that continues to stoke the fire.

I am also predicting one extra thing...

Regardless of what happens with the September rate hike, or future rate hikes the feds may cook up, the lenders are going to start getting creative.

If there are fewer deals out there for banks to get, they are going to be forced to get competitive with each other and you’ll see products & temporary rate games being played to get your business.

Banks need to lend money in order to make money. So, they will find a way and we will benefit.

And that’s all for this month! If you require any market information relating to your specific situation, please don’t hesitate to reach out!