As we move into 2018 and the spring market home owners looks to statistics and numbers to evaluate the value of their home. We look at various numbers such as list to sale ratios, absorption rates and comparable sales on MLS. These numbers are very valuable and provide insight into the activity and demand in a particular areas of the city.
However, we must also look to numbers outside of the MLS system.
Especially in new communities where resale homes are competing with new construction, we have to look beyond the MLS. New home sales data is generally not available to the public.
Last week the OWL, written by the ATB Financial's Economics + Research Team, published an article titled 'More Evidence of a Residential Construction Slowdown'.
In Relation to Calgary specifically the article stated:
That indicator is the number of completed, but unabsorbed houses in our province. In Calgary, 635 new homes sat vacant with no binding agreement made to buy or sell at the end of last year. As of December, vacant housing in Calgary was 19 per cent higher than during the same month a year earlier. In fact, December’s total reached the second highest level of vacant housing of 2017 since December 2011. What’s more is that inventory rose at an average rate of 22 per cent last year.
When buying and selling homes in areas that compete with new home construction, consider all competitive options in your review. A visit to the local showhomes never hurts to get a better understanding of the options buyers have in your price category.