Similarly, bond markets — which determine interest rates on fixed mortgage — appear to be anticipating interest rates will level off and could even decline slightly amid concerns over a recession, Soper says.
“The No. 1 concern is what mortgage rates will cost buyers,” says Doug Cabral, realtor with Royal LePage Benchmark in Calgary. “But the second is whether the home they buy today will be worth less next year.”While sales are not at the record paces of last spring, demand remains strong in Calgary amid historically low supply, and competition is likely to become even more fierce during the busy spring, he adds.
Although pricing is still below the peak of last May when the benchmark price reached $546,000 — an all-time high for the city — home prices are likely to inflate quickly because of low supply, Cabral says.Yet he points out that concerns about pricing movements — up or down — in the next year or two should not stop Calgarians from buying today.