We gathered some of our team members to share a wealth of knowledge about real estate.
Our agents, Erin DuPont, Alex Weston, Matt Antrum and Rebecca Chamberlain, talked about tips and trends this year. They also gave guidance to buyers and sellers who are planning to make a move next year.
We have never been in a pandemic before, so none of us knew how to go about it. During the lockdown in March and April, things moved slow. Everybody was cautious about everything.
When the government lifted the lockdown in May, the real estate market took off and switched significantly. Sellers had the opportunity to sell in a hot market due to a lack of inventory.
There was so much interest on the buyers’ side. Most properties on the market had competing offers from so many buyers.
People capitalized on the cheap money because of low-interest rates. They took advantage of the situation and realized it's a once in a lifetime opportunity to move up.
With all the pandemic uncertainty, it was surprising to see such a busy and active market. Because our present reality forced us to stay home, people have more time to do house shopping.
Instead of moving down like what many thought would happen, people moved up. Buyers got into a higher market that was too much for them in the past.
Indeed, COVID has changed the pace of the market. It has been like a spring market in the middle of December if you look at the sales number.
The Market Flip
The market has switched overnight. Last year was more of a balanced buyers market, especially in the detached home segment. Whereas, in the previous three months, the number of sales outpaced the number of new listings.
As a result, the sellers speculated slightly higher in terms of prices. This was very common in the detached market with a price range under $550,000.
We also saw the same stats in all the product segments, from townhomes to semi-detached apartments. It was one of the most optimistic time periods that we have seen since 2014.
Guiding clients through this pandemic has been challenging. Agents had to pivot and switch to a more virtual world. They had to learn how to do virtual open houses and virtual showing.
What to Expect
We foresee more movement once people are confident to go out when businesses open to a larger degree in Calgary.
More people who have been on the sidelines will take advantage of these low-interest rates to make a move. The market will continue to have low inventory and high demand.
It’s safe to say that 2021 will be a busy year for Calgary’s real estate market.
Based on the month to month stats, we can see prices creep up, and there's going to be great opportunities even in the luxury market. For example, the other day, a house was recently sold at $5,200,000, but it was initially listed at $20,000,000.
With the positive development of the COVID vaccine, migration could be more rampant. Some ex-pats could come back to the States. Moving across Canada may continue to happen, and many Canadians overseas may also start to go home.
As long as interest rates stay low, we're going to see a continued busyness. Many people will take advantage of the opportunity to live on an acreage.
More employees could move out of town because companies are veering towards working from home, and they don’t need to stay in the city anymore.
Many companies are also starting to move to Calgary because we have cheap office space. Recently, Suncor moved here from the east. This trend is something to keep an eye on next year.
Gearing Up for Success
Having a solid plan is of prime importance. You need to understand what type of market you are selling into and what type of market you are buying into. Then make a plan whether to sell or buy first.
Unlike in the previous years, people are now deciding to buy their next home before they sell. That could have been a risky play because there was no guarantee on how quickly your home would sell. But recently, we’ve seen some neighbourhoods sell 100% of listings in less than two months.
Buying before selling is now becoming the new strategy. The selling part is now easier compared to the buying part. Finding your next home is quite challenging now if you don't move quickly.
It is also vital for sellers to understand the price point based on the market. There are still markets that are quite saturated, like the infill market. Some communities might not be the best platform for you to buy and then sell after if that's where you're selling out of.
Understand what position you're in on both sides and put a strategic plan. Then, talk to your mortgage broker about your options.
If you don't need to sell, it takes some of the pressure off in the transition. You can choose to sell after you buy or explore more options after knowing where you stand.
If this information made you think about your next move, we have more data to help you with. Reach out to us, and we’d love to talk to you and set you up for success! Send an email to firstname.lastname@example.org now.