By the fall of 2009 it was readily apparent that the Calgary real estate market had turned a corner; from a buyer's market to a balanced market. First time home buyers drove the marketplace with the Bank of Canada continuing to hold borrowing rates at record lows and property valuations declining approximately 8% from 2008 levels. Property inventory levels showed significant declines, particularly in the less than $400k pricepoint. The increasing shortage of 'good' properties has driven some first time buyers back into the rental markets,at least in the short term. These short term rental agreements bode well for the Calgary real estate, as I anticipate the market to pick up significant steam as we approach the historically hotter spring market.
A number of factors are alligned to push demand and prices higher: - talk of increased borrowing rates by the Bank of Canada, significant residual unfulfilled demand (including the short term renters) from the fall of 2009 and continued low inventory levels.
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