Thanks for taking the time to read...much appreciated.
Here we are at the start of April, and the biggest question we are asked right now is what has happened to the real estate market? Is it the new mortgage rules that have affected sales? Is it the eternal winter where nobody wants to leave their house and look at places for fear of frostbite? Is this just the new reality of living in Calgary?
Spring has not sprung seasonally or in the real estate market. My take is that it's a combination of all three of these things. For the second month in a row, we have seen sales numbers down 20+% over the previous year at the same time. That is a really significant number of homes not selling.
However, there are still quite a few that are....and how come? Well, there will always be a buyer pool, no matter how good or bad the market is. It's just a matter of the size of the pool. Now, if you are searching for a buyer for your home, and you are competing with a larger than average number of properties on the market, value becomes the key. You are fighting for the next buyer, because you don't know if there is another one coming after that. You don't want your neighbour to beat you on value. It's a competition...a race if you will to get the next buyer before someone else does. How do you win that race? 1) Be the prettiest house 2) Be the best price for the product. People with choice will turn your home away for the slightest of reasons. There is no practicality to residential sales. It's all feel and emotion. Make the buyer feel that your house is the best, for the best price. You win.
A strategy that is working for us to stay relevant is scheduled price reductions. We are setting out a pricing plan for our sellers that includes scheduled reductions. If you make your house the prettiest, and it's not selling, I guarantee it's a price problem. It's a simple formula to sell a house....Stage it right, market it properly, keep the price moving to stay relevant. More than ever, it doesn't matter what you need to get for your home, it's about getting a buyer....and the buyer's hold the cards.
Our hope is that 90 days from now, the snow will be gone, people in the city will have gotten into a better mood, and the spring market will just have been delayed a little bit....
Now, the positive news is if you are a BUYER!!!! You have a world of choice out there right now, and there isn't nearly as much pressure to "make a decision" as there is in other markets or even compared to a year ago here. You can take your time to shop, be selective, negotiate favourable terms, and really get what you want instead of having to settle....it's a fantastic time to get into something new to you!
Here are some quick highlights for you on this months market......
1. A total of 1,374 units sold in the city last month, down 27 per cent from 1,890 units a year ago.
2. Overall inventory reached 6,371 units in March, up 24 per cent from the 5,124 units recorded in March 2017.
3. With slow sales and climbing inventory, there was nearly five months of supply on the market in March, up 71 per cent from 2.71 months a year ago.
4. The condo segment continued to struggle with excess supply in the resale, new home and rental market during the first three months of 2018, which impacted prices. In the first quarter, condo prices averaged $256,567, one per cent below the fourth quarter of 2017 and three per cent below levels recorded in the first quarter of 2017.
For the whole stats rundown, click the link below.
If anyone you know needs more information, or help navigating this crazy market, give us a shout...we're always ready to help....
Have a great April, and stay warm!