Gary MacLean, a Realtor with RE/MAX Real Estate Central in Calgary, said the housing downturn has taken place faster than any he has witnessed in his 28 years in the industry. “It is, of course, linked directly with the speed at which oil crashed,” he explained. “There are layoffs happening everywhere which is taking buyers out of the market. If they have not lost their jobs, they are afraid they might lose them, so they have put their buying plans on hold.”
He explained that layoffs or potential layoffs are hitting homeowners with large mortgages, lines of credit and credit card debt. “I believe a large percentage of the rush to sell may be caused by this group of people trying to sell their homes,” he added.
MacLean said many people know someone who has been laid off and that causes a ripple effect in the economy, resulting in consumers becoming very cautious about spending. This reduces the number of potential buyers in the marketplace.
“When we have a market like last year with a shortage of inventory for the number of buyers out there, prices are driven up,” he said. “It is the law of supply and demand. Well, we have started this year with a huge number of homes on the market, up over 100 per cent from this time last year — and with sales down 40 per cent, the same law applies here, only in the opposite direction.”
MacLean pointed out that this is a market in which there are few buyers compared to the number of homes for sale. Sellers have to be aware of this and realize that they have to price their homes competitively. ##
(Photo Credit: Calgary Herald)
Article submitted by Sandra Lane to – Daily Business News – MHProNews.
