When is the right time to buy a house? It’s normal for inexperienced buyers to feel uncertain. Purchasing a home is a big decision—probably one of the biggest you’ll ever make.

For one thing, there are the common financial concerns. And there’s no doubt that from the outside, the buying process can seem a bit overwhelming. But recently, a lot of Calgarians have stopped exploring their options for another reason. They believe the city’s housing market conditions aren’t right.

Of course, only you can decide when you’re ready for homeownership. And I would never advise jumping into a purchase before weighing your options. What I can do is tell you a little bit about what’s going on in the market right now, and what it means for first-time homebuyers.

It might surprise you to hear that there are advantages to looking around sooner rather than later. Who knows? This just might be the perfect time to buy your first house in Calgary.

First-time buyer concerns

To start, I’d like to delve into some of the most common reasons first-time buyers hesitate—in any market.

Here’s one of the questions I hear time and again: should I wait until prices fall before I buy a house? It doesn’t matter how good the market is for buyers. There will always be some who are wondering whether it’s about to get even better. Of course, there’s nothing wrong with trying to get the best possible deal. And honestly, I’m glad my clients trust me enough to ask about it.

Unsurprisingly, this isn’t the only question first-time buyer ask about money. Let’s face it, the housing market is complicated. So is all of the financial stuff—from mortgages and lending rules to closing costs and income taxes. If you don’t know how much house you can afford (and on what timeline), you’re in good company.

This leads me to the concern that almost all first-time buyers share: being poorly informed. If you’ve never purchased a new house, you’re bound to be confused about which sources of information you can trust. Most buyers feel more than a little bit anxious about misinterpreting a discussion or signing a document they don’t completely understand.

These worries can prevent people from searching for their dream homes—especially when they’re unsure of which way the market is headed. But it’s certainly worth asking: just how is Calgary’s housing market doing? And what does it really mean for first-time buyers?

Recent market changes

In its latest report, the Calgary Real Estate Board (CREB) notes that sales were slow in March. This has been a persistent trend throughout the first quarter of 2018. Clearly, buyers have been hesitant. But why?

Recent changes to federal lending rules have had a major impact. As a real estate agent, I’ve heard from several first-time buyers who decided to hold off on house hunting after the mortgage stress tests came in late last year.

These new rules have made it more challenging for some people to purchase houses, which has caused a slight slump in demand. And as a result of this slump, we’re seeing headlines that have left some people feeling less-than-confident in Calgary’s real estate market.

Media coverage of the Toronto and Vancouver markets has also played a role in buyer perceptions. Last year, Canadians were bombarded with stories about soaring house prices in these cities. And although these markets have cooled to some degree, it’s been hard for many Canadians to shake the idea that this isn’t the time to purchase real estate.

Combined with the regular first-time buyer concerns, public perception is making some Calgarians hesitant to take their first steps toward homeownership. If this sounds like you, I don’t blame you. But you should know that there are a lot of reasons to feel good about exploring the housing market right now.

Why now might be the time to buy

Here’s the reality. Calgary’s housing market is in fairly good shape. You don’t have to take my word on that—the Canada Mortgage and Housing Corporation (CMHC) recently released a Housing Market Assessment for the first quarter of 2018. Here how our city fared.

First off, the Calgary market isn’t overheated, which means there’s enough supply to meet demand. In fact, I can tell you from recent experience that there’s a wide selection of homes available right now. That’s great news if you’re a first-time buyer.

What about prices? There are two big considerations to take into account: price acceleration, and overvaluation. Unlike what we’ve seen in some markets, Calgary house prices aren’t continuously rising at a rapid rate. And for the most part, homes aren’t being overvalued the way they have been in other hot markets.

Of course, these factors don’t erase the impact that lending rules are having on some buyers. But if you pass the mortgage stress tests, there’s no reason that you shouldn’t explore your options.

Let’s return to those first-time buyer concerns. Is the market going to get better for buyers who wait? The truth is, it’s never the absolute perfect time to buy. But to reiterate: right now, there’s a wide selection of homes available, and prices aren’t rising at unreasonable rates.

In his comments on the city’s March numbers, CREB president Tom Westcott probably said it best: “[y]ou can find good value if you’re looking to buy a home, and you can also get good value if you’re selling.” Westcott also noted that being well-informed is the key to success in any economic condition.

The bottom line is, it’s important to go into purchasing your first house feeling confident and excited. A bit of research, persistence, and advice from a trustworthy real estate professional can go a long way toward making that happen.

Still asking “when is the right time to buy a house in Calgary?” Or, ready to buy your first home? We know the Calgary market inside and out, and we love working with first-time buyers. Get in touch and we can set up a time to discuss your needs.