2013 was a year of larger than anticipated price increases and sales volume for both single family homes and condominiums. Will the trend continue for 2014?
The month on month news calls of increased pricing have caused some sellers to unfortunately over price their properties. I've represented a few buyers that have offered strong values but were not successful as sellers decided to hold out for more. In almost all cases, the properties my clients offered on sold for less or have not yet sold and my buyers have moved on to purchase other homes. Potential sellers with homes close to new developments need to also consider builder options when evaluating their competition in the marketplace. Many buyers are newcomers to Calgary so are looking for a move in ready home. If they are coming to Calgary from cities with longer commute times they seem to be willing to travel the extra distance for a new home compared to purchasing an older home closer to their area of employment.
At the same time buyers do need to review recent sales to understand that pricing has gone up significantly in the last year. It is shocking to some folks that there are very few 'great deals' out there that don't have strings attached and it is in fact a seller's market.
I believe prices will continue to climb, but not as quickly as last year. Buyers are focusing more on the quality of homes and are willing to pay for preferred materials, best building practices, and quality renovations but they are also saavy and want to see information regarding flood history, permits, builder backgrounds, warranty information, and more. Builders have also responded to the lack of inventory so will have to wait and see how many new starts and build outs become available in the spring.
The numbers in the statistics package are a snapshot of history for the resale market only and I encourage you to review them. The future pricing growth depends on many factors including new listing availability, migration to our city, mortgage rates, and lender policies. I also believe that the school capacity issues around Calgary will begin to push folks either to or away from certain neighbourhoods.