Calgary home buyer show caution In 2012

In the article “Single-family home sales and average prices dipped in January”, it talks about an economic issue in Canada. It shows an interesting phenomenon that single-family MLS sales were going down by 1.4 percent while the sales of condos were increasing by one percent. Bob Jablonski, CREB’s president, said that “a slow start to the year is anticipated as consumers continue to becautiously optimistic when it comes to purchasing or listing their home”(2012). Even though the price is slipping during months, the overall house price continues to rise during these years. The fast pace of globalization means that Canada is greatly influenced by this evolutionary process.

Photo by: Dean Bicknell

Canada is seeing more and more immigrants rush to the metropolitan areas. For example: international traders, well-educated scholars, mechanics and technicians. As a result, the big cities, such as Calgary, become more crowded. This is one of the most important reasons that house prices continue to increase. Abundant oil and oil sands resources drive investors to pay close attention to Calgary as well. Moreover, people are paying more attention to the quality of living conditions, including the environment, health care, and working conditions. Therefore, they pursue a better place to make a living. Just like more and more people are sharing one piece of cake. Calgary is that piece of cake! Calgary is good for living, working and education. This is why the housing issue is a typical case to demonstrate economic and philosophical globalization force.

However, there are two sides to this story. On one hand, rising housing prices will definitely irritate new consumers. They could not afford the mortgage by their hard working and may have to rent an apartment for a period of time. On the other hand, it is a symbol to show the decline of people’s quality of life. But as for macro aspect, I completely agree with Richard Cho when he says “Activelistings have been elevated but have started to trend lower. Employment growth,especially among full-time jobs has been encouraging and migration flows toAlberta continue to remain steady.”(2012).We can see that this better employment picture will encourage more graduates. To some extent, this issue makes a contribution to keeping the society stable. There is no wonder that prospective buyers are in favor of the current housing market conditions. At the same time, Calgary will attract lots of investors who offer Calgary a wonderful opportunity to develop.  For instance, public transportation system, health care system and resource explorations will be improved more or less.

My recommendation is that Canadian government should let the housing market develop while, at the same time, government should pay close attention to the balance of the housing market and make appropriate adjustments to keep the market on the right track. Banks could also develop lower mortgage interest rates to help support demand for resale and new homes. Corporations could also offer their permanent workers rental allowance to reduce those white collars’ financial burden. Lastly, consumers should try to accept the concept that working place may not be permanent, and that changes in our lives should be embraced. Therefore, when the consumer is more settled, like after marriage and having kids, they purchase a house will experience lower risk.