I could see that we had an inventory crunch coming. I said it back in January, but we’re now finally hearing it in the media:
Global TV(Fri May 4): A lot of people are looking to buy, but realtors say there aren’t a lot of homes on the market right now.
Global Calgary | Calgary’s housing market bounces back.
Excerpt from the above story: “The minute a sign goes up a sold sign gets stuck right on the front of it and we’ve been victims of that in the past, where you wait too long and the house is sold.” -Dan and Barbara Mowat
A few statistics will drive the point home:
- Inventory is at 81% of it’s normal level at this time of year.
- Sales over the past 30 days are 32% higher than last year
- Over the past two days, 20 homes have sold for list price or higher(15% of total SFH sales)
- 55% of the homes listed in March already have a firm sale(last year it was 38%)
The first warning signs were posted on my website in January:
Jan 16, 2012(What’s new): Sales for the first 20 days of January are higher than any of the previous 3 years. New listings are lower than the previous 3 years.
I then wrote on Feb 12: Unless we see a flurry of new listings soon, we’re headed for an inventory shortage.
The median price of SFH has risen $32,250(8.2%) since the beginning of the year.
Yesterday, a bungalow in Wildwood which was listed for $399,900 sold for $452,900. It had an offer on the first day.