The official sales numbers were posted by CREB this morning and it is not surprising to see the current trend continue from last month. Though, I must say, there has been a noticeable increase in activity in the latter part of February. Official sales are down 35% from the same time last year with a significant rise in inventory.
The rate of new listings is coming down so we will see if the initial surge was based on those wanting to list ahead of a possible downturn. With many people forecasting and commenting on a myriad of future paths I won't contribute to the speculation though I personally look to the 5 year trends as much as comparisons to last year's record numbers.
What I am doing is ensuring all of my clients are aware of the specific details regarding the market trends, listing inventory and sales information for the particular property type, pricing and area of the city they are reviewing. The numbers and strategy differ widely based on these factors. While some investors seem to be taking a watch and see attitude, folks still need somewhere to call home so consideration between the buy vs rent options are needed.
We are generally in a balanced market potentially turning towards a buyer's market in some specific segments.
Below is an example of how general numbers are misleading. It really depends on what, where, how much and in what condition. Get the right information before you leap to conclusions.
Example: Detached property in Calgary.
Active at time of writing: 2947
Sales in the Last 30 days: 788
Months of Inventory Snapshot: 3.74
Detached Property in Calgary Under $600,000
Active at time of writing: 1644
Sales in the Last 30 days: 634
Months of Inventory Snapshot: 2.59
Detached Property in Calgary Over $600,000
Active at time of writing: 1309
Sales in the Last 30 days: 156
Months of Inventory Snapshot: 8.39
3-4 Months of Inventory is generally considered a Balanced Market: The number of homes on the market is equal to the number of buyers wanting to buy.
Homes sell within a reasonable amount of time. Prices are generally stable.
Buyers have many options however well priced homes will attract interest. Equal negotiating power between buyers and sellers.
Over 4 Months of Inventory is generally considered a Buyer's Market: The supply of homes on the market exceeds demand.
High inventory of homes. Few buyers compared to available inventory. Homes remain on the market longer. Prices tend to decline in this market.
Your home may take longer to sell. You will have to be priced in the market to be noticed. Less negotiating power during a sale.
As always, if you have questions about the market, your home value or wish to meet to discuss your real estate needs, I'm always happy to help. Call me direct at 403 850 2446.