Alberta residents might have noticed media reports that the real estate is about to become a buyer's market. But what does this mean for those considering buying or selling residential real estate? It basically means that the market is a bit easier for buyers and tougher for sellers. Although it is a matter of supply and demand, government regulations also play a role.
For some time, house prices continued increasing, making it a seller's market at a time when the demand exceeded supply. So many people wanted to buy that it led to bidding wars and prices going up. Then, new rules became effective when federal regulations were announced that would prevent buyers from committing themselves to unaffordable mortgages.
Both buyers and sellers will have to tread carefully when they proceed with real estate transactions. Buyers can ensure they have the necessary funds to cover down payments -- the size of which will be determined by their credit profiles -- along with all the additional fees like broker fees, legal fees and the various closing costs. Sellers must determine their asking prices with care because even if they find buyers, mortgages may not be secured when prices are too high.
Buying or selling homes will always be a complicated business that Alberta residents may be wise to tackle with the support of an experienced residential real estate lawyer. Errors made during real estate transactions can have significant financial consequences that most people would likely prefer to avoid. Regardless of whether it is the buyer or the seller, or in whose favour the market is at that time, the intricacies of such transactions can lead to unanticipated problems.
Source: Huffington Post Canada, "What Is A Buyer's Market, Really?", Samantha Brookes, Aug. 9, 2017