How to Win in this Crazy 2022 Market

 

How-to-Win-in-this-Crazy-2022-MarketIf you have been thinking of making a real estate move but can’t figure out how to win in this crazy Calgary market, this blog is for you!

We gathered the data about all the detached home sales last January. Understanding this data will help you create a winning strategy in making a move within Calgary, Okotoks, Airdrie and Cochrane.

Sell in Suburbs and Buy in Established Areas

Many residents of Calgary were born and raised in the city. As they grow old, they start to build their own homes. Often, families move from inner-city communities into newer neighbourhoods far north, far south, maybe even Cochrane, Okotoks, or Airdrie.

Recently, our team had conversations with families who moved to suburbia, and they are now wanting to move back to the inner parts of the city like Triwood, Haysboro and Lake View. Due to the latest market trends, there is a great opportunity for families to move back into neighbourhoods in the inner city ring, especially in the coming spring and summer.

A lot of people from out of town are now looking into inner-city homes built within the last five to eight years. Those are homes that you might be sitting on, and you may not realize their current values.

We curated a map to visually show you what has happened in the market in January 2022. The green dots indicate detached homes sold at list price or over, and the red dots are sold under the list price.

how-to-win-in-this-crazy-2022-market-map1

Most properties down south have sold at or over list price. But coming up to downtown and on the west end of the city, there is a good mix of red and green. And then for communities in the north, there is a lot of red. A lot of these are in older, more established areas.

If you live in areas with a lot of green, your home values are good. From last summer to the last 45 to 60 days, some of these areas have seen anywhere from $80,000 to $120,000 of increased value.

Now, here is the crazy part. This map shows the Airdrie area. The purple marks are for homes sold at or over list price, and red is under. 80% of the detached houses in Airdrie sold at or over the list price!

how-to-win-in-this-crazy-2022-market-map2

As a seller, understanding these stats is the first step to surviving and winning in this crazy Calgary real estate market.

Several families who chose to live in Nolan Hill, Sage Hill, Coventry and Evanston have wanted to move back into Hawkwood, Varsity, Thorncliffe, and similar areas, but were unable to afford it before. These homes will go up in value, but those in suburbia have already gone up in value. It is likely a suburbia mini-boom happening right now!

Townhomes and Condos Values will Increase

We haven't seen increases for townhomes and condos yet, but we foresee them coming this spring, summer and fall. Some people bought townhomes and condos back in 2009 for around $200,000, and they didn’t want to sell before because the prices were not going up until 2021. But recently, there have been properties that have sold for $30,000 to $40,000 over what they paid back in 2009.

This price appreciation can be attributed to many people moving to Calgary from different cities in Canada. These families and individuals have grown equity from selling their previous homes. And sometimes, they come with hundreds of thousands of dollars that they can put into the house they are buying here.

If you own a townhouse or condo, this might be the time that you have been waiting to sell! If you have been keeping the place as a rental, you can finally graduate from all the responsibilities of being a landlord. Or, if you have been staying in the property, you can eventually move up into a bigger and better house.

If you need help making a strategy to sell your home, we can get a Homebeat set up for you. A Homebeat will show you information and market data about homes comparable to yours. But before you go ahead and sell your home, it is important to know where you are going as inventory is so low, therefore you might have a hard time finding a new house in this crazy Calgary real estate market.

Adjust your Buying Criteria Proactively

The last strategy for winning is to adjust your buying criteria quickly. If you don't have a place to sell and are only buying, proactively adjusting your buying criteria to avoid being priced out of the market is key.

This can be a hard pill to swallow; while many areas have seen a $40,000 to $100,000 increase in value, your savings may not be growing as fast. Since home prices have gone up, if you are wanting to buy a starter 1300 square foot detached home, you might need to look at a townhouse or a condo depending on your shopping budget. You have to adjust the type of product you are looking at quickly and don't wait too long.

It is all about your expectations and what you're putting out there in the market. If you keep getting frustrated because you are putting offers in and houses are selling for way more than what you can offer, it can make you feel discouraged. That is not winning.

For example, if there are 30 offers and you are not offering a lot more than the list price, there is no chance your offer will be chosen. In this type of market, money talks. Most sellers will likely choose something on the higher end of what they are getting first and then consider letters and who the people are.

The market is changing so quickly, which means you have to as well. Try to change your criteria and try different ways to win. That might not sound fun, but that is the current reality and the honest truth. We, at the Chamberlain Group, want to tell you the truth because we want you to win.

If something's not working, we will not try to keep pushing you down the same path. If you are not putting up enough deposits, not doing the right conditions, or looking in the right areas or products, we will tell you about it. We want to win with you, not be frustrated with you!

We are glad to share that our team has been winning! In January alone, our team went conditional on over 50 homes, which is not normal for this market. We are even a lot higher than last year for ourselves. We are figuring out strategies, ways to write offers, and doing things that are helping us stand apart!

If you have any questions, we would love to talk to you. Send us an email at info@chamberlaingroup.ca or give us a call at (587) 316-5400.

Posted by Jared Chamberlain on
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