Category Archives: Market update

What happened in April

Posted on May 1, 2013 | 4 comments

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

4 Comments

Posted in Bidding wars, Calgary SFH, First-time buyers, Market update, Month-end

Market update Apr 1 – 25, 2013

Posted on April 26, 2013 | 3 comments

Inventory remains very low for this time of year.

Inventory vs sales and price2

3 Comments

Posted in Calgary SFH, Market update

Market update Apr 1 – 19, 2013

Posted on April 20, 2013 | Leave a comment

Despite more new listings, inventory continues to drop because of the increased sales.

Inventory vs sales and price2

The demand for homes in Calgary is resulting in numerous bidding wars. Yesterday, 25% of all sales were for list price or higher. A home in Scenic Acres which was listed for $458,000 had an accepted offer after one day on the market and sold for $468,000. It was purchased in 2001 for $209,000.

A tear-down on a 50′ lot in Montgomery also sold in one day. It was listed for $419,000 and sold for $432,500.

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Posted in Calgary SFH, Market update, Over list price

Market update Apr 1 – 14, 2013

Posted on April 15, 2013 | 3 comments

Sellers are finally starting to list their homes, but inventory remains low because the buyers are snapping them up.

Inventory vs sales and price2

Bidding wars update:

Over the past 3 days, 17% of homes sold for list price or higher. A bi-level in Silver Springs was listed for $475,999 and sold in 5 days for $484,000. It was purchased in 2010 for $417,000.

A 2-story in Sundance was listed for $419,900 and had a firm offer in 2 days for $430,000. It was purchased in 2007 for $365,000.

From the Calgary Herald: Calgary home price growth best in Canada

3 Comments

Posted in Calgary Herald, Calgary SFH, Market update, Over list price

As predicted

Posted on April 11, 2013 | 4 comments

Sales have been repressed this year because of low inventory. A few days ago I predicted we’d see more listings and consequently more sales this month. Unlike Garth Turner’s predictions, mine come true.

So far this month new listings are up 18% compared to last year, and sales are up 17%.

I have a lot of respect for someone who admits they screwed up. If you got it wrong, man up and admit it and move on. Denial and obfuscation is some people’s style, however. Yesterday Turner was taking credit for his predictions, but there are a few of his readers who can see through the spin, such as this  one:

#97Vik on 04.11.13 at 12:08 am

Garth,

Price went up 30-40% in the GTA. You call 15% correction? Nice try dude. More like a dent. I feel sorry for the people who listened to you for the past 5 years.

We all know what prices inflated. I’m telling you why this period is over. — Garth

It would be enlightening to know what excuse he would use for his incorrect prediction about Calgary’s prices dropping to 50% of 2006 levels.

4 Comments

Posted in Calgary SFH, Greater Fool, Market update, Predictions

What happened in March

Posted on April 1, 2013 | 1 comment

The median price hit an all-time high for Calgary at $450,000 which obliterates the previous high of $439,000 set back in Jun 2007.

Inventory vs sales and price

There’s an overwhelming demand for homes priced under $500,000 with only a 36-day supply of homes on the market. Last year in this price range, there was a 51-day supply.

Read more here Monthly stats update

Does the phenomenon of recency distort our views? How far back should you examine the numbers when considering housing data? From the Globe and Mail: Housing bears need to relax and take the long view.

1 Comment

Posted in Calgary SFH, Market update, Month-end

Market Update Mar 1 – 21, 2013

Posted on March 22, 2013 | 1 comment

The March median price will break all previous records. It’s surprising to see that sales are up considering the inventory shortage.

Inventory vs sales and price
20% of homes sold in the past 2 days went for list price or higher. A 1931 Mt Pleasant bungalow which was listed for $449,900 sold for $502,100. It had an accepted offer in 1 day.

It’s a hot seller’s market for homes in the 0 – $400,000 price range, with only a 35-day supply of inventory. Also in that price range, 78% of all new listings are selling within 30 days.

For homes above $400,000, there’s a 72-day supply.

******
Alberta’s population is closing the gap with BC. If both provinces continue to grow at the same rate as last year, Alberta will surpass B.C. and become the third largest province within eight years. Alberta’s population growth is best

1 Comment

Posted in Calgary SFH, Market update, Over list price

Market update Mar 1 – 14, 2013

Posted on March 15, 2013 | 2 comments

There was a lot of consternation in February when Calgary’s sales were down by 6%. Many were jumping on the crashwagon, saying that Calgary had finally succumbed to the same fate as Vancouver and Toronto.  Now in March, compared to last year, they are up 2.7% and compared to the 3-year average, they’re up 7.8%.

Inventory vs sales and priceBidding wars have eased up slightly with only 10% of homes selling for list price or higher over the past 3 days. First-time buyers are seemingly being priced out, which in turn should help to moderate the price increases. The inventory shortage is still the overriding concern, however.

2 Comments

Posted in Calgary SFH, First-time buyers, Market update

What happened in February?

Posted on March 1, 2013 | 2 comments

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

2 Comments

Posted in Bidding wars, Market update, Month-end

Market update Feb 1 – 15, 2013

Posted on February 16, 2013 | 4 comments

Over the past two days, 20% of the sales have been for list price or higher. 31% of the homes listed in the past 30 days already are sold or conditionally sold. Concern: First-time buyers are down 8% compared to last year. Are they being priced out?

Inventory vs sales and priceA tear-down bungalow in Capitol Hill was listed two days ago for $524,900. It sold in one day for $540,000. Builders seem to have confidence in this market.

Also two days ago, a home in Elbow Park sold for list price, $1.6 million, after two days on the market.

4 Comments

Posted in First-time buyers, Market update, Over list price