What a difference a few weeks make. All those folks looking for a home, especially in the lower price points, have noticed that homes are going from new to pending or sold quicker than they were a few weeks ago. Homes are selling closer to list price, statistically speaking, and we're seeing more multiple offer situations. In some corners of the city, we're seeing a distinct seller's advantage. Many communities are now seeing an average Sale Price to Listing Price Ration of over 98% and even 99.5 or 100% as a monthly average. This has been steadily moving up over the last few weeks. If you are searching for a new home, getting paperwork in order and being prepared with preapprovals and plans is more important than ever. Those amazingly low mortgage rates, low rental availability and the prosperity in our city has had a significant impact on the residential real estate market.
Buyers that have been checking out the market for more than a few months may need some time to adjust to the new pace. In recent years, buyers had time to review all options, and take time to decide, but that is no longer the case. As the rental market has gotten tighter as well, it is a challenge for newcomers to our city. That being said, if you know about a home for rent in the NW or Cochrane that would accept pets please let me know. I'm trying to help find a family a home.
If you are selling your home and your market evaluation is more than a week or two old, then it is out of date. Get up to date information as you get closer to your list date. Timing is everything. And as always, that beautifully presented home will see more showings, more interest and a better opportunity for stronger offers.
The numbers from the CREB press release:
The inventory of active homes for sale in Calgary are the lowest March levels in more than five years. The decline in new listings hampered resale sales growth, which declined by more than two per cent in March compared to March 2012.
New listings in March are five per cent lower than levels recorded in 2012, and five per cent lower after the first quarter. The overall active listings stand at just 4,006 units, up from February’s levels but well below the number available one year ago.
Single-family, year-over-year sales growth declined by six per cent in March, a reflection of declining supply. Active inventory totaled 2,713 units, 22 per cent lower than levels recorded in 2012, and the lowest March inventory level recorded since 2007. The market balance continues to trend into seller’s territory in this segment causing a year-over-year price increase of nearly nine per cent, for a total of $446,500 in March 2013.
New single-family listings under $500,000 are declining at double-digit rates, driving consumers at that price point to either surrounding towns, condominiums or the new home market.
The condominium townhouse market is the only category to record a year-over-year rise in sales activity for the month. This is in part because the level of new listings improved in March 2013 relative to March 2012. Condominium year-over-year apartment sales declined by nearly three per cent in March.
The benchmark apartment price totaled $257,700 in March, a six per cent increase over the previous year. Meanwhile, the condominium townhouse benchmark price experienced a year-over-year increase of 4 per cent, to $286,800.