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
Even with inventory down by 25%, sales were still up by 3.8% in Feb compared to the average of the past 3 years.
- 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
Canada Day in Canmore, Alberta
The housing market in Calgary continues to defy gravity(and all the predictions that were calling for a crash). The biggest issue we had this spring was a shortage of attractive listings. I predicted back in the winter that we’d eventually see higher prices if the lack of inventory persisted, and that’s exactly what happened. The median price is up 9.2% compared to December.
With so little for buyers to choose from, it’s surprising to see that year-to-date sales are up 19% compared to 2011, and up 12% compared to the past three years. More complete statistics can be seen here Monthly stats update
Bidding wars update
Over the past three days, 12% of homes went for list price or higher. A home in North Glenmore which was listed for $489,500 was sold for $492,500, with an accepted offer coming after 2 days on the market. The home was purchased in 2007 for $450,000.
Over the past four days, 13% of the single family homes went for list price or higher. A few examples…
A home in Garrison Woods sold for $606,000 which was $6,100 over list price. It had an accepted offer in four days. It was purchased in 2004 for $308,000.
A home in Glamorgan sold for $482,000 which was $7,000 over list price. It had an accepted offer on its first day on the market. It was purchased in 2006 for $395,000.
A reno project in Oakridge Estates sold for $765,000 which was $$2,500 over list price. It was purchased last year for $517,500.