The market update for Feb 2016 is rather unchanged from previous months. Our economy remains on a similar track. I’ve taken the last few days to really carefully review our local numbers and statistics and also had the opportunity to attend a small market update meeting with the Chief Economist from CREB.
Putting all the numbers together I’ve decided to tell you to ignore all TOTAL Calgary numbers currently posted in making decisions about your potential purchase or sale. Shocking. Why?
They are aggregate numbers meaning they are numbers that take together property styles, prices and locations across the city. Except for general trends they really say little about what your specific home is worth. What is exceptionally important is reviewing the property type, price point and area of city that you are interested in. The Chief Economist has provided local Realtors with the tools to compare and review detailed market data in various forms and I strongly take advantage of the tools made available and for that I want to thank Ann-Marie Lurie both for her hard work and openness with the data available.
Year over year numbers are not helpful right now. When the percentage flashes on the screen in big numbers on the evening news please ignore it. Last year we were just at the start of a downturn at this time of year and the statistics didn’t reflect the adjustment yet and the rental market was tight. New home construction hadn’t yet adjusted to the pullback in sales. Today we are looking at much more opportunity in the rental market, new home construction is going to have many options shortly available especially in the multi-family sector and our local economic forecasts have adjusted to reflect an expectation of reduced sales and some downward pressure on pricing.
The numbers that I ask you to carefully review are those that I will bring you when evaluating your home or when pursuing a purchase. Details include the following:
Property type? Are you buying an apartment or a detached home? 2 Story or Bungalow? How are the various types performing in various communities?
Price point? The number of available homes vs sales is dramatically different per price point. You are not in a buyers market in some segments and in a significant buyer advantage in others.
Location? There are 3 main rules in real estate that determine property value. Location. Location. Location. And that doesn’t just mean a community, but also on what type of street, what is the lot backing to and how does the property relate to transportation, amenities and school options.
Example (As of Feb 9 10 am)
Say we are looking for an apartment in the inner city under $300,000 with minimum 2 bedrooms.
Active Listings: 78
Sold in the last 30 days: 9
Months of inventory: 8.67 – Very strong buyers market
Say we are looking for a starter home under $500,000 in NW Calgary. A popular area due to the proximity to the LRT line.
Active Listings: 91
Sold in the last 30 days: 38
Months of inventory: 2.4 Balanced leaning towards sellers at the start of this year. Surprised?
Say we are looking for a large home with minimum 2000 sq ft under $1,000,000 in West Calgary.
Active Listings: 135
Sold in the last 30 days: 17
Months of inventory: 8. Strong buyers market especially considering the new construction options in the area.
Do you see the opportunity? If you are looking to move up to a larger home this may be just the right time if you have a smaller detached home in the under $500,000 segment.
The strategy for selling your home is the same as always. Presentation, Marketing and Price. Let’s work together so we can put the sold sticker on the sign out front.
When buying a home you will have the information you need to negotiate your best price for your new home.
Should you wish assistance with the purchase or sale of a home in our local Calgary market please do give me a call. I am happy to help.
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