It seems buyers have the upper hand in the Cow Town real estate market. When it comes to the luxury sale of residential real estate in Alberta -- particularly Calgary -- the economic downturn has put a damper on sales of more upscale homes. Add to that other factors like tighter federal mortgage regulations and heightened interest rates, which are barriers to homebuying.
Buyers have more muscle in this kind of market. And with prices of luxury homes in the Calgary area continuing to plummet throughout 2018, many buyers and sellers took themselves out of the game. But all indications are that those buyers and sellers may be ready to play ball again.
The unemployment rate in Calgary is above the national average of almost 8 per cent. That, too, has a bearing on the market and could mean the difference between the purchase of what is considered a luxury home and what is not. In fact, a prestigious real estate firm which lists upscale properties said real estate sales of homes worth more than $1 million dropped 10 per cent last year compared to the same time in 2017.
No matter what the economy is doing at any given moment in Alberta, residential real estate transactions will continue. Deals will continue to be inked and will close. The guidance and advice of an experienced real estate lawyer could mean the difference between a wise decision and one that could have been more prudent. A lawyer will always have the best interests of his or her clients at heart in any real estate endeavour no matter how the economy is doing.