The snowstorm may put a short term damper on our enthusiasm and our ability to get around our awesome city, but the real estate market in Calgary doesn't look to be slowing down.
With many folks calling Calgary the bright spot in the Canadian market, the real estate market locally is showing positive growth. With sales just a touch down from this time last year and the average pricing hitting new records, the numbers speak to the day to day reality we are seeing. The challenge right now is the lack of inventory and the very tight rental market. This time last year there were 4,843 properties for sale in the City of Calgary. As of this posting there are 3,623 listings. There are less listings at lower price points than previous years so those looking for a $400,000 home are seeing fewer options and more competition than other price points.
In terms of limited inventory, it is a bit of a wait and see game for some buyers looking for homes with specific criteria especially in some neighbourhoods. I have buyers waiting for homes in some areas to come on market and we are seeing them sell very quickly when they do. Careful consideration of price is still very important as 'overpaying' is not something most will consider.
Those people moving between properties are reviewing the buy then sell vs the sell then buy scenario in a new light in this market. As a 'subject to sale' offer is more challenging to get accepted, those people that wish to buy with the confidence of knowing where they are moving are finding it more difficult. With the lack of homes on the market in some areas, these same people are cautious to list their homes because they don't want to sell and be left without any options especially considering the tight rental market. It's a scenario we haven't seen for some time. I've spoken to a few families about this recently and much of the stress can be removed with careful review and planning both financially and also in being ready to list their current home almost immediately once we find their new home. Get packing, organizing and meet with your mortgage representative. The upside is that the current home should sell in a reasonable time frame as well.
For those interested in listing a home for sale, the average days on market have reduced and sale prices moved closer to list prices on average. I've also noticed a few more people 'testing' pricing and the market. Buyers are still doing careful market evaluations (as are their lenders during appraisals) so the test will be quickly evalutated.
The condo market has stabilized now as well with positive growth shown both for apartments and townhome style properties. Careful review of condo documents and projects remains a must even in a tighter market.