What to expect for the rest of 2021?

Today, July 29, 2021, the Calgary Real Estate Board posted its projection for August 2021 through to the end of 2021.  Sales have been hot but going forward we are now going to see a more balanced market going into 2022.  That means sellers need to price their houses accurately.  For every 150 homes coming onto the MLS system, I'm seeing approximately 75 having to do a price reduction.  With apartment condos, I think we are going to start seeing the return of steady decline in equity that we've seen in the last five or more years.  That means apartment condos are going to continue to be a poor investment - especially for the first-time buyer.   But for townhomes, in my opinion, its too early to tell exactly what they will do.  I anticipate townhomes retaining some of their gains this year due to the fact that a starter home is $380,000 and over - making townhomes the affordable compromise.  I warned my clients who's homes were valued at $700,000 and up to try to list and sell before June 1st due to the government's plan to implement a 5.25% mortgage qualifying hurdle (despite whatever interest rate you were quoted at the bank).  Those that did not are now facing price reductions to get their properties sold.  There is also an inordinate amount of $1M acreages on the market and if those sellers want to sell before the snow falls, they are going to have to look at doing a price reduction to get the property moving.  If you are a first-time buyer, don't expect starter homes to go down in value.  I think the increase in value is done for the year so that takes pressure off the first-time buyers to compete in offers but I don't think the prices of these homes to go down anytime soon.  Next year the Bank of Canada plans on increasing the interest rate and that will bring some serious headwinds to the the Calgary market.