The real estate landscape in Calgary has changed, but deals are getting done, says Mark Herman, a broker with Mortgage Alliance.
“Low rates and falling prices have many of our wealthy customers looking into buying condos at 1999 prices and then renting them out,” says Herman. “They are also getting their files ready to buy a few gems that don’t come up for sale often, like places in Canmore and Ghost Lake where owners are being forced to sell due to the downturn.”
The renovation industry has seen an uptick in business.
“Many people are working from home with reduced expenses for driving, and summer holidays have been cancelled. They are either taking out lines of credit to improve their homes or paying with the cash they have saved for significant home improvements,” says Herman. “The renovators that we are in contact with say they have not been this busy since 2008. Craig Welsh, owner of CW Concrete, says homeowners used to get three quotes and mull renos over for months. They now hire him on the spot with only a ball-park quote.”
The travel ban has hit long-term rental companies, says Herman.
“Owners of AirBnBs are really hurting. They were raking it in with income about three times higher than what they could have charged with a long-term rental but now they are empty,” he says.” Many of them are looking for longer-term rentals and have taken the six-month deferrals, but is that going to fix the problem when that deferral expires?
“There are more examples of things we don’t see every day happening all the time now. All this said, strong deals are still getting done, at great rates and on time as expected.”