Homes in Calgary Made $5,692 per Month Equity!
More homeowners are getting convinced that NOW is the best time to sell their homes because of the rapid growth in the Calgary real estate market. People always ask us as a realtor, “Is my home really worth that much?”
Many sellers know what their home is worth, but they do not know how to make sure they get that amount.
Benchmark Selling Price
Look at the following numbers to better understand what is happening in the market that impacts the value of your home. The benchmark price of all homes in Calgary has gone up about 16% year over year.
All the properties in the city - detached homes, townhomes, and condos - had a 16% increase, which is equivalent to $68,300. That means, every month, over the last 12 months, you made $5,692. That is $187 per day and $7.80 per hour over the last 12 months!
An even more interesting fact is, if you own a detached home, the value of your house increased by $10.72 per hour over the last 12 months!
Supply and Demand
As with any type of market, supply and demand go hand in hand. Evidently, there is not a lot of inventory available for people looking to make a move and want to buy a house right now.
You need a solid strategy to win in this crazy market. You cannot afford to just sell your house without knowing where you will go because of the low inventory. Finding your next home could be challenging and being homeless is even more difficult!
If you are still wondering if your home is worth a certain amount, see it as a “Starbucks experience.” There are so many different coffee shops selling exquisite coffee. However, Starbucks is selling not just coffee; they are selling an experience!
Starbucks has mastered the art of creating an experience with a cup of coffee. Consumers have the impression that choosing Starbucks is still awesome even if they have to pay $5. The experience of being in the coffee shop, receiving excellent service, holding that cup of coffee, and just the total “Starbucks experience” keeps people coming back.
This does not mean Starbucks has the best coffee in the world. There are so many other cafes offering great coffee, however, people are willing to go to Starbucks and pay more because of the experience. And that is supply and demand.
There is so much real estate demand right now because of people coming here from different cities. These buyers have different backgrounds and see Calgary as a gem, where they want to experience living in and spend their dollars to buy properties. That is a big reason why we have seen increases happening so quickly.
Out of Town Buyers
Since last year, we have seen more people from our neighbouring cities move to Calgary. They are buyers who have equity and cash. They have money from their homes in other cities that they are bringing here.
Work at Home Discretion
This is a perfect storm for Calgary in terms of values increasing and we can attribute it to the work at home situation. Our team had a recent conversation with a client from Vancouver. The couple has the discretion to work from home; that’s why they are looking for a place here and planning to move by summer.
They can spend $900,000 to $1,200,000, and it is safe to assume that they have a large sum to use for the down payment to buy a property here. This scenario is happening a lot in Calgary right now.
Should you Sell Now or Wait?
The burning question is, “Should I sell now or should I wait?” Well, the best answer truly depends on your situation. If you have a home and want to make changes, you cannot just jump ship and put a for sale sign on your lawn. Properties are going so quickly for the right homeowner, at the right price, with all the right things done to it.
This is a part of the reason why we have supply and demand issues. Many homeowners are not willing to put their homes on the market until they find a new home. In this type of market, you have to search and sometimes even fight for the property you want. Some buyers have gone through seven to ten offers before getting a new property.
Buyers’ fatigue is real in this market. People have to go through the same process and some are getting tired of making offers and not winning. This is causing a snowball effect on the market. There are already a lot of buyers in the city and out-of-town buyers are adding up to the demand. However, they don't have homes to sell from here. They are adding up to the buyer inventory without having a house to sell on the other end.
If you have a rental and don't want to keep it anymore because you were just an accidental landlord, now is the time to make changes. Maybe you could not sell your property before because it wasn't worth it. The tables have turned and now is the best opportunity to cash in your investment.
The Bank of Canada can raise interest rates to eight times per year. We have already gone through two of them. The most recent one was about 0.25 basis points, so the interest rates were up slightly. Will this make the market slow? Not necessarily!
The interest rate may have gone up but that does not affect the out-of-town buyers that much. They can even handle a couple of hundred bucks of changes in interest because the value of homes here is still cheaper than the same type of property from where they were coming from.
If you want to have a conversation with us, you can book a call and we will connect you to one of our agents. We want to help you put a plan together, strategize when is a good time to make that move and when you should sell your house.Posted by Jared Chamberlain on