Calgary continues to experience a shortage of inventory with 17% fewer listings than normal for this time of year. There is only a 60-day supply of single family homes on the market. In the lower price ranges, it’s even more severe. For homes priced under $500,000, there is only a 42-day supply.
Despite the shortage of listings, it was the third-best August ever for SFH sales(second-best for overall sales due to strong condo sales).
If you had any doubts about the lack of inventory, bidding wars are still going strong with 18% of sales for list price or higher.
If you bought an average home in Calgary in Aug 2013, the price has increased $29,100 in the past year.
From the archives
What were they saying last year? Aug 29, 2013 Garth Turner at greaterfool.ca predicted: “Prices are poised to enter a multi-year melt as supply overwhelms demand in places like Calgary. Renting units will grow cheaper as more come on stream …owners will see their net worth eroded while landlords subsidize tenants.”
Tried to find a rental in Calgary lately? The vacancy rate is the lowest in the country, and rents have increased dramatically in the past year. The “melt” has resulted in a price increase of 6.5% or $29,100.
Who can you trust?
Whatever happened to conspiracy theorist Ross Kay and his secret data? Last year, he and Garth Turner were ready to blow open and “expose” the statistics reported by the Calgary Real Estate Board. I called him out and am still Waiting on Ross Kay’s open and full disclosure
Pure bluster. Be careful who you trust.
As always in the summer, the price dropped slightly in July. Sales activity is still strong, and more homes are being listed compared to historical averages. Inventory is still low. 19% of homes sold for list price or higher.
If you bought an average home in Calgary in July 2013, the price has increased $29,000 in the past year.
From the archives:
What were they saying two years ago(July 25, 2012): Housing market headed for 25% crash as predicted on Garth Turner’s Greater Fool blog
If the price had dropped 25%, we’d have a median price of $314,000 today. Since July 2012, the price has risen 16% to $484,900.
Slightly better conditions for buyers in June
- More homes are being listed
- Bidding wars have eased, but are still commonplace.
- 26% of homes sold for list price or higher in June.
- The average amount paid over list price was $6,417.
- The median price did not increase
- Average DOM(days-on-market) increased by 2 days
- Inventory is almost up to last year’s level
- The trend is your friend: The sales-to-new-listings trend is decreasing. Last year it was increasing.
If you bought an average home in Calgary in June 2013, the price has increased $40,000 in the past year.
My warnings last year of a looming inventory shortage have become reality and it’s an entrenched seller’s market. If you’re looking to sell your home, chances are good that you’ll have a bidding war from prospective buyers. In March, 34% of homes sold for list price or higher. That’s the highest it’s been since the insanity of 2006-2007. Call me for a free evaluation 403-650-2514.
For a more detailed summary of the month-end stats , go to my website
Calgary continues to experience a severe shortage of inventory. There is only a 54-day supply of single family homes on the market. Last year, we had a 90-day supply. Despite the shortage of listings, it was the second-best August ever for sales. More detailed statistics can be seen at Monthly stats updates
Bidding wars are also continuing with 14% of homes selling for list price or higher during the last 3 days of the month.
Over the past four days, 14% of sales have been for list price or higher. For a healthy market, that’s still higher than I’d like to see it.
A 1990 sq ft 2-storey home in Citadel which was listed for $434,900 was sold for $445,000. It was only on the market for two days.
More indicative of the market is the sales-to-new-listings(SNL) ratio at 80%. The average SNL in July since 2006 has been 59%.
The absorption rate of 2.0 is also in seller’s market territory. This means we have a 60-days supply of listings. We normally have a 102-day supply in July.
I don’t normally pay much attention on this blog to the condo market, but the SNL ratio for condos in July is a phenomenal 95%. It’s usually at 59% in July.
Average and median prices reached an all-time high in May. A dramatic increase in first-time buyers bodes well for the move-up buyer and the long-term health of the market. For the last two days of May, 21% of homes sold for list price or higher, so bidding wars are still going strong. You can see a more comprehensive update on my Monthly stats update.
With inventory approaching the 3500 level, I’m hopeful we’ll see a moderation in prices and an end to the bidding wars for the remainder of the year.
From the Calgary Herald: Calgary housing market smashes records in May
Inner-city development properties are in demand right now. A tear-down in Capitol Hill which was listed for $475,000 was sold in one day for $535,000. An old bungalow on a 50′ lot in Banff Trail sold in one day for $549,900 which was list price. It was purchased in 2009 for $470,000. These homes are usually bought by builders who construct 2 infills in place of one old house.
Bidding wars update: Over the past two days, 20% of sales were for list price or higher.
A spike in new listings led to a dramatic rise in first-time buyers in April. Bidding wars are at their highest level in years. Over the past 3 days, 24% of homes sold for list price or higher. With new listings up 5%, I would have expected to see a drop in the median price, but the pent-up demand from buyers kept sales and prices up there. When 24% of homes are selling for list price or higher, you can be assured that inventory levels are not making for a healthy market. Let’s hope for a surge in new listings in May. You can see a more comprehensive update on my Monthly stats update.
Bidding wars have returned to Calgary with a vengeance. Over the past three days, 21% of the homes sold in Calgary went for list price or higher.
A couple examples:
An original Westgate bungalow which was listed for $439,900 sold for $470,000. It had an accepted offer after 2 days on the market.
A renovated Lakeview bungalow which was listed for $819,900 sold for $830,000. It had an accepted offer after 3 days on the market.
Calgary truly is different. We’re rated as the best place to live in Canada. Calgary ranked top Canadian city in which to live