There seems to have been a shift in thinking in the Calgary real estate market. I think the root of the problem is consumer confidence. If you are putting off purchasing your first home because you're unsure of your income or employment situation, completely justifiable. Purchasing your first home is a large financial commitment and you have to be 100% ready to take on those challenges. However, if you are financially and emotionally ready to purchase your first home, but lack confidence in our current real estate market, this then becomes a "self fulfilling prophecy".
Here's what happens:
1. You hold off purchasing a home because you want to 'wait and see' where prices are in 6-12 months.
2. Because there are many people thinking this way (the herd) therefore sales slow, inventory rises, and sellers drop their prices to sell their home.
3. The media catches wind of this information (increasing inventory, decreasing prices) and reports it back to the market.
4. You now feel justified by holding off purchasing a home because everything you wanted to hear came to fruition. Now in your mind, you continue to wait, why not?
Do remember this; the media is a business and they generate income by selling advertising dollars to their clients. The more eyeballs on the screen, the more they can charge for advertising. Creating 'doom and gloom' or 'recovery' articles will attract the most attention. Read the article, not just the headline, and think about why they are writing this article and what information is in it.
So whats the point?
The herd mentality in 2006 & 2007 said it was a great time to buy. Now the herd mentality is saying wait until 2011 & 2012 to buy. Is the herd always right, no. Purchasing a home is a very personal decision and you must decide for yourself. Instead of me saying 'now is a great time to buy'; I am offering a real solution to your confidence issue = Buyer Protection Plan. With the right advice, at the right time you will make a better decision with more information.
Contact me today for my take on Calgary's real estate market.
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
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