Shocking Detached Home Update

To say that the world is changing is an understatement. Over the last couple of months, the real estate market in Calgary has been like never before. Detached homes have changed, prices have gone up and things are on fire!

If you own a home in Calgary, Airdrie, Okotoks, or Cochrane, we want to show you some shocking numbers in the latest stats that we pulled from Pillar 9 and CREB. Understanding these numbers and the differences in these areas will give you a clearer picture of what is happening in the market right now.

Median Price

Last spring, from May to June 2021, the median sale price of homes in Calgary was $520,000. Over the last 60 days, it went up to $555,000. In Airdrie, it went up from $450,000 to $589,000. For Okotoks, the value was $480,000 to $580,000, and for Cochrane, it went from $496,000 to $575,000.

The median prices have increased exponentially, and that is just the average. Some homes were sold for even higher prices!
Now, you might be wondering why Calgary had the least amount of increase which was $35,000, whereas Airdrie had a $139,000 increase, Okotoks had $100,000, and Cochrane had $79,000. Two major factors are driving this increase, the suburb boom and out-of-town buyers.

Market Trends

Some people think that out-of-town buyers flocking into Calgary are just investors. However, our team of 15 agents has been so busy helping out-of-town buyers over the last couple of months. Out of all the buyers, there is only one investor! The rest were families and individuals truly wanting to stay and reside in Calgary.

Most investors are coming to Calgary for new builds, so there are more opportunities in the resale market for families moving here. Home values are rising like crazy because of the influx of families from other cities. However, we have noticed that most of them choose newer type products like homes built in the year 2000 or newer.

Communities in Calgary are much older and way more established than the neighbourhoods in Airdrie, Okotoks and Cochrane. Most homes in Calgary were built in the mid-1990s and newer. And these types of homes haven’t seen the increases in a while because they do not have enough inventory.

There hasn’t been a lot of sales happening in the more established areas in Calgary for the prices to shoot up compared to its neighbouring areas. The city is so big and so different, so there are many smaller markets inside of it. That is why it shows such different stats. You have to dig deeper and get more data to see the whole picture of the current market.

List Price

Now, here are the percentages of homes sold over list price. In January and February, 67.5% of all detached homes in Calgary sold at or over the list price. Airdrie recorded 85%, Okotoks had 64%, and Cochrane had 70%. If you are thinking of selling your home, now is the time to do it, as the majority of homes in the market are selling above the list price!

The median price per square foot is also interesting data that you should look into. There used to be a much bigger gap between Airdrie, Okotoks, Cochrane, and Calgary, but it is definitely closer now. $371 per square foot is the median sale price per square foot in Calgary. Airdrie goes for $318, and both Okotoks and Cochrane are at $311.

Median Price Over List Price

Right now, let us look at the most unbelievable data that we have uncovered; the median price over list price. We looked at properties sold over list price and the median value over the asking price they sold for.

In Calgary, the average price that homes sold over the asking list price was $31,000. In Airdrie houses, that number was $50,000! For Okotoks, it was $25,000 and Cochrane was pretty much the same at $26,000. Again, the Airdrie numbers were drastically bigger than others because there are so many newer homes and neighbourhoods in the area.

Buyers are willing to pay more because they want to win and get the best home for their families. We looked at the tally of all the homes that sold over $100,000 above the list price in Calgary and Airdrie. We also looked at the number of homes that sold over $40,000 above the list price in Okotoks and Cochrane. In the last two months, there were 3,694 homes sold in Calgary and 142 of them sold for $100,000 or more over the list price. In Airdrie, 30 homes sold over $100,000 out of 270 total sales. In Okotoks, 14 properties sold over $40,000 and Cochrane had 20.

If you plan to sell your detached home in any of these cities, you need to have a great strategy for pricing and preparation to get the most value out of your home. The market is so different now! You cannot just list it and expect to get multiple offers and sell over list price. It doesn't work that way!

Our team has a lot of experience in dealing with this market. We have the strategies and the connections to help you position your home. If you are planning on selling your detached house here in Calgary, Airdrie, Okotoks or Cochrane we have the strategies and the connections to help you get the most value out of your home.

So if you want to learn more about market updates, you can reach out to us at info@chamberlaingroup.ca or call us at (403) 879-4145.