The real estate market provides opportunities for investors despite the pandemic for homes for sale Calgary NW
Buying and selling of real estate in Calgary defied the effects of the Covid19. It maintained its momentum all along until the end of 2020 and continues in the New Year too. Unexpectedly, Calgary was a hot zone of real estate buying and selling through the pandemic, and as of January 2021 pace of home sales has gone up by 3.4% compared to December 2020. There is enough evidence to suggest that the pace of home selling moves along an upward curve because the increase in sales is 14.9% more than what it was a year ago. It is only usual that you would come across numerous ads about homes for sale Calgary NW and other areas like southwest Calgary.
Although the news might seem encouraging for real estate investors, on looking deeper into various reports about Calgary's real estate market movements, you will discover another side of the story. Some new reports suggest signs of a slump in the markets from an investor's perspective. There are reasons to trust the report because it comes from an organization that guides investors by providing valuable insights about investment across the Canadian real estate market. On careful analysis of the reports, it should become clear that investors could still find many opportunities for investment despite the slowdown because it needs to hold on to properties and wait for the turnaround, which is not very far away.
Consider your investment goals and time it right in homes for sale Calgary NW
There is often an idea among people that real estate investment provides high and quick returns, much faster than stocks and bonds, and the risks are fewer. That is only a half-truth because it does not happen always but mostly depends on investors' wisdom. How well you can read the market trends and align them with your investment goals matters most in ensuring faster ROI from your real estate investment. If you want to make quick bucks by flipping homes, this is a bad time because of the slump. On the other hand, if you are ready to follow a strategy of buy and hold, then it is the right time to put your money into selected properties that have the potential of providing high returns.
Market analysis and timing are critical to deciding about real estate investment. The better you can align it with your investment goals, the more will be the chances of success. Consult a specialist to get a clear picture about the market.
Do not expect positive cash flow
One of the main objectives for putting your money into real estate is to generate positive cash flows through rentals that provide a steady and growing income stream for years. If you belong to the group of real estate investors who are ready to bide their time after investing and do not expect immediate returns, then this is the time to lay out your money. Various studies are optimistic about a quick recovery from the slump. Investors can develop strategies to take advantage of the prolonged down cycle in the benchmark price of properties declining over the past 5 years. Between 2015 and December 2020, the benchmark home prices in Calgary fell from $470,000 to $424,000, according to the data available from Calgary Real Estate Board. If you are not buying for positive cash, then you can go ahead with your investment in Calgary real estate.
Types of property for investment
In addition to understanding the real estate market well, another aspect vital for real estate investors is the type of property to invest in. Besides knowing about the overall demand for real estate in Calgary, which looks optimistic, you must put your money in the right place. All types of properties do not provide the same kind of return, and the choice of property must even match with the timelines of return you expect. Consider the demand for various homes, from single houses to condos to bungalows, based on the market reports. You will observe that at this point time the segment of single-family detached homes and townhomes is showing strong demand at a lower price point. These properties have strong potential to generate multiple cash flow streams and can provide the best return on investment.
Buy low sell high
The apartment segment still holds good promise for investors as they can expect the best value for prices that have touched relatively low levels due to the pandemic. Although Calgary real estate activities remained quite encouraging during the pandemic, the lowering of benchmark prices allows investors with the scope of high profits as they can buy low and sell high. The rule of the game is quite clear – put in your money, have some patience, and you will surely reap the benefits because, given some time, Calgary real estate shows positive signs that can translate into high returns.
Good days are round the corner
The Calgary real estate market proved to an economic anomaly during the Covid19 pandemic. When real estate marketing across the world was going through an unprecedented loss of demand that affected investment, it was business as usual in the Calgary real estate market, albeit a slide in the sale prices.
That it was not just a fluke is now very clear as listings went up dramatically in January 2021 to 2246 over 1172 in December 2020. A spectacular increase of 91.6% listings in a month only shows that the real estate market rebounding predictions soon have enough merit in it. As the asking price of homes also keeps increasing rapidly, tomorrow may be too late if you are yet to decide about investing. There are clear signs that the market is moving towards a buyer's market, and the activities are fast gaining pace.
If you have the patience to invest and wait for about a year until 2022, there is every chance of home prices bouncing back when you can reap the benefits.