CALGARY RISK IN REAL ESTATE FADES!
It has now been a year since oil has dropped so dramatically in the market.
The effect on the local market has been adjusted for in most peoples lives. They are making real estate decisions as before, but taking more time for that step. In the oil producing world there are many players. Some need $75.00 a barrel to be profitable and others need $20.00 a barrel for a 10% margin. The big companies at new projects have expenses that have doubled in the past few years, where other companies have already written off assets and are at the producing level so their costs are below the $20.00 a barrel price.
What this all means in Calgary real estate is prices are holding their own. The last daily summary for the median price for the City of Calgary was a -1.96% change from year-to-year. As I have said many times when considering real estate, is that you need to think in the long term of “25 years”. I recently had a full duplex for sale. The seller had purchased it back in the 1960’s for $23,000. In 2015 we entered the market at $699,900. Even at this price we are still affordable for a rental property.
This reminds me that CMHC, the mortgage insurance group, will now allow rental income from a property to help buyers qualify for a mortgage. An investment of a bungalow with an R-C2 zoning with a suite may be a good choice. With rental rates up, this may be a good time to enter the market.
If you know of anyone who is thinking of buying or selling, I would appreciate you passing my name onto them. Also my webpage at www.docwatson.ca has daily updates on house prices in the Calgary market. There is also a directory of services and professionals to help you in all your home needs.
Thank you for all the referrals! Have a great month.
“Doc” Watson, Realtor
Sutton Group Canwest
Text: (403) 804-8007
Office: (403) 208-7788
Celebrating over 25 years of Real Estate Service in the Calgary area