To some “Market sentiment is the general prevailing attitude or consensus of the investment community as to the anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events.”

If you have been following the Real Estate market you will know that the general Market Sentiment or Confidence is very low. Generally speaking it’s a really challenging time for Sellers and to some Buyers a great time to buy.

Personally in my business I have seen Buyers being very patient. With a large inventory to choose from they are in no rush to make any decisions and have the luxury of being more meticulous with their purchase. With Sellers it’s a much different story in terms of anxiety and waiting time. Still i can say that the desirable homes that are priced well can easily be Sold in as many days as in a great Seller’s market.

Currently working with both Buyers, Sellers and running a New Condo Project here are some of the comments & opinions of my clients and others in the industry:

“My offer on this home is reflective of a 8-10% downturn that some are predicting.”
“It’s the best time to Buy with historically low interest rates and homes with massive price reductions”
“We expect a 15-20% drop in home prices over the next 6 months”
“Calgary and Alberta will lead Canada next year in job growth and GDP”
“My house used to be worth $430,000- and now it’s worth $360,000-”
So who is right?……………………No one is right!

There is no right or wrong answer…to any of these questions as no one can predict the future. What we do know is the following:
Real Estate has always been a long term investment and probably always will be.
Rates are at historical lows.
There’s always possible risk and reward with Real Estate.
No one home is immune to the market ….however Location, Location, Location is still great to have.
What is published in the Media is generally late….whether it be positive or negative news.
Your home or any such item is only worth what the market is willing to pay; which now depends greatly on Market Sentiment as such others like inventory, rates, & job growth/stability.

So what we can do to make educated decisions… is to evaluate each person’s objectives, budget, life stage, and goals to see if there is a fit in today’s or tomorrow’s market.

As in life …. we only have control of our own actions and never the outcome!

Kind Regards,

Ken Andrade
RE/MAX House of Real Estate
REALTOR® and Certified Condominium Specialist CCS