Inventory levels have reached record highs on the Okotoks real estate market with few buyers willing to take the leap. According to the mid-year forecast report put out by the Calgary Real Estate Board (CREB) on Aug. 15, sales have eased more than expected in the entire Calgary region since January. In Okotoks, that has meant the lowest level of sales since 2010, with increased inventory and a decrease in buyers. The report states Okotoks has not seen inventory levels as high in at least a decade. Local realtor Meagen Mackenzie said sales have been a lot slower in the first half of 2018 than expected. “There’s just so much inventory right now in Okotoks and there are very few buyers, so everybody’s just kind of sitting and waiting and trying to be patient,” she said. “Even the listings we do have, and I know this from speaking with other realtors in town, we’re not getting any showings. They’re few and far between.” She said the market is forcing sellers to be more aggressive with prices if they want to see their home move. All they can do is ensure their house is in pristine condition, because those who are out there looking to buy a home can afford to be picky with so much to choose from, she said. Homes should also be priced to sell and stand out against the competition, she said. It’s something some sellers struggle with, because in many cases it means listing the house lower than it was initially purchased. “They’re hesitant to reduce, a lot of them are wanting to just sit on it and wait and see, but that’s not getting offers, it’s not even getting showings,” said Mackenzie. “I don’t see prices coming down as much as they should be, to be honest, which is also part of the reason we have a surplus of inventory.” She said it’s understandable to see people shy away from losing money. During her eight years in Okotoks real estate, she said she’s never seen the market like this. “It’s bad,” said Mackenzie. “The thing is, I don’t anticipate the market changing, at least for the end of this year, because there’s really nothing that’s going to happen to make it better. But everyone’s hopeful, we’re all hopeful.” She said one of the reasons there could be fewer buyers on the scene are the new mortgage rules that came online in January, which force people to put more down on a home than before. Many people no longer qualify for mortgages that may have a year ago, she said. “It makes it a lot more difficult for buyers to qualify,” said Mackenzie. “And when they do qualify, they qualify for less.” For Colby Sawatzky, a mortgage broker with The Mortgage Group (TMG) in Okotoks, 2018 has been anything but slow. He said sometimes it means thinking outside the box to help someone qualify for a mortgage. “What we are seeing is probably more co-signing, so parents co-signing or siblings co-signing, or gifted funds,” said Sawatzky. “Let’s say a kid is buying a house and has five per cent down but with the new mortgage rules he needs 10 per cent down to qualify. Parents are gifting that five per cent.” Sometimes it works another way, with parents or other family members paying off debt like car loans to help prospective buyers qualify for a mortgage, he said. While brokers could approve mortgages for people coming out of school and buying their first home with five per cent down payments before, now there is more need for help, he said. “We are seeing families stick together more than previous in order to get these mortgages past,” said Sawatzky. He said there has been a lot of movement on mortgages to finance building new homes, which seems to be steady. It’s putting TMG ahead of last year by 20 per cent to-date, he said. “And last year was a pretty good year,” said Sawatzky. “The resale market is definitely slower, but the new home builds are keeping up.”
