The real estate market has been very different over the last few months. As we enter 2021, the numbers continue to soar, and things are continuously getting positive.
Our seasoned agents, Jared Chamberlain, Simmi Aujla, Matt Antrum and Alex Weston, talked about their observations in the current market as well as their expectations for the rest of the year.
The Current Trend
The most apparent trend right now is the increase in sales across all market types in Calgary. The number of sales increased by 40% year over year, and the prices have gone up a little bit too.
While sales are increasing, the crazy part is the inventory number is continuously declining. Right now, if the product is good and it's priced competitively, it will sell right away. This has been a consistent theme for the last couple of months.
Because inventory is so tight, multiple-offers-scenario has become a new norm in the industry. Simmi Aujla said it's super critical to have a good strategy when something good comes on the market because it will indeed be gone quickly.
A big part of this trend is the number of buyers sitting on the sidelines waiting for a home to move up to before selling their current place. Everyone is waiting for something, and it's definitely making the market so different from the previous years.
In December 2020, the detached house sales increased by 42.5% compared to 2019. That number is super high, and we have never seen such an increase before. Semi-detached houses had a year over year increase of 39% in the number of sales. Townhouses had a 33% increase, and finally, the apartment condos had an increase of 38% year over year.
The December numbers are pretty shocking. It is exciting to see that there is still so much momentum in the market until now. Most people are sitting at home a little bit more and spending less money. This is the reason why people are saving more money for their downpayment fund.
At the end of December 2020, there were only 3,600 listings in the city. Right now, mid-January, we're sitting at 3,733 properties. That number includes townhouses, apartments, condos, detached homes, luxury homes and everything else.
There’s not a lot of inventory, especially for people in the detached home buying market. Only 1,495 detached homes are available, and half of the market is made up of everything else.
Alex Weston observed that many people are taking advantage of this time to move up. Families who have outgrown their condos or townhouses are selling their place to move into a detached home.
The problem is while it's a good time for them to list their house, they've got no place to go. There's not a lot for them to choose from on the buying side.
We harp on this a lot on our blogs because it is so important. You need to have a plan and be ready to go. If you decide on a whim because of the spur of the moment, you will surely be in trouble in a market like this.
Matt Antrum advises people who are in that move up category to get their preapproval before anything else. It is essential to sit down with your advisor and put a plan in place on how you want to move forward. With a house to sell, the idea right now is to get prepared before you even get on the market.
Ask your agent to get photos done early. Do necessary touchups around the house and get your house staged. This way, when it is time to get on the market, you don't have to wait long.
Given the market’s current state, when your house is all prepped up, it can move as fast as 24 to 48 hours. It is a game of preparation for both buying and selling. Everybody needs to be prepared because the market is intense and faster than what we're normally used to.
The final thing to be ready for is what you can be approved for. Figure that out, and have a preapproval letter. Write a letter about your personal family because you could walk into a multiple offers situation, and you can definitely use that to win.
You can reach out to us if you have any questions about the market in Calgary. Send us an email at firstname.lastname@example.org.