Calgary is a Canadian city, where more than a million people remain. A few years back, Calgary houses were at a higher demand. People were competing with them to buy a house in such a developed city. But things have changed a lot now. The end of 2008 and beginning of 2009 happened to be the worst period for Calgary homes. There was a considerable fall in real estate business; thereby resulting in reselling of houses. RBC economic research says that, the proportion of pretax household income needed to service the costs of owning a home. This assumes that if the proportional value is a higher one, then it means a less affordable home.
Reasons for Downfall:
There are several reasons for the down fall of Calgary real estate market. The major reason for the downfall is the weakness in claims. The economic conditions at present have made people to not even think of affording a house in Calgary. Here there is a weakness in demand for houses. Also, the rising interest rates have led to a slowdown in job rates, there by paying a way for unemployment. The negative immigration of Alberta is yet another reason for the downfall of Calgary real estate. The rising demand for Calgary houses has thus led people to shift to different regions of Alberta. Almost one third of them tend for illegal immigration. The uncertainty in US and Canadian economic outlook has also left the market to this state. As a result, there has occurred a tightening in mortgage regulations. The banks are in an unstable stage to provide loans to the people in need. All these have led to the downfall of Calgary's market.
The significant fall of Calgary real estate has led to various impacts. The foremost thing bothering the market is the prices for new houses. The prices have been dropped extremely, thereby leading to a decline in sales. As a consequence, the buyers are circling the wagons, which shows signs that it has become a buyer's market. Anyhow, there is no means of profit for the sellers and agents.
All the above blows and impacts on Calgary real estate may tend to ask the question: Is Calgary market waving a red flag? But the answer may be not exactly yes. The rising mortgages rates, increased inventories and improved job prospectus are expected to cool down the Calgary real estate conditions within time. Any country or state may experience such downfall for a certain period of time. Here is the current situation in Calgary may change and the real estate market may again raise its head.