Category Archives: Bidding wars

Market update July 2014

Inventory vs sales and price2
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.

Market update June 30, 2014

Inventory vs sales and price2
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.

Market update March 31, 2014

Inventory vs sales and price2

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

Market update Aug 31, 2013

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

Inventory vs sales and price2

Bidding wars are also continuing with 14% of homes selling for list price or higher during the last 3 days of the month.

Sellers have the upper hand in Calgary

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.

May 2013 Calgary SFH market update

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.

Inventory vs sales and price2

From the Calgary Herald: Calgary housing market smashes records in May

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Market update May 1 – 8, 2013

Inventory vs sales and price2

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.

What happened in April

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.

Inventory vs sales and price

Bidding wars 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

What happened in February?

Even with inventory down by 25%,  sales were still up by 3.8% in Feb compared to the average of the past 3 years. 

Inventory vs sales and price

  • The average price hit an all-time high for Calgary at $518,452 but it’s well-known that I put more credence in the median price, which hit an all-time high for Feb at $437,500. It’s still $1500 less than the record high of $439,000 in Jun 2007.
  • First-time buyers were up 6.8% compared to last year.

A seller’s market

  • There’s a huge demand for homes priced under $500,000 with an absorption rate of 1.3 which means there’s a 39-day supply of homes on the market. Last year in this price range, there was a 60-day supply.
  • For homes priced above 500,000, there’s a 111-day supply.
  • Bidding wars are going strong, with 17% of homes selling for list price or higher in the last four days of the month.

Read more here Monthly stats update
From the Calgary Herald: Calgary housing market sets all-time record