Condo market correction underway
Published Saturday, February 14, 2009 2:14PM MST
Seven thousand condo units are under construction in Calgary right now and as the economy slips, many buyers are trying to get out of their contracts.
In British Columbia, one developer is suing buyers who have walked away from their deposits and some people are worried that could happen in Calgary too.
In some new condo buildings, buyers are trying to sell their units as soon as they take possession, even if it means taking a substantial loss on the property.
Officials say there is currently more than six months of oversupply in the condo market right now and more than 200 empty units.
But the Canada Housing and Mortgage Corporation says there is some light at the end of the tunnel.
The CMHC says in the long-term, the condo market will regain its value as demand returns to normal.
In Alberta, developers have two years to sue for Breach of Contract. Experts recommend talking to a real estate lawyer before making any decisions on terminating their contract.