Sellers’ market in February leads to rising prices
City of Calgary, March 2021
With gains in every price range, residential sales activity in February totaled 1,836. This reflects the best February since 2014.
“Despite continued COVID-19 restrictions, housing activity continues to improve. Much of the strong sales activity is expected to be driven by exceptionally low mortgage rates,” said CREB® chief economist Ann-Marie Lurie.
“Confidence is also likely improving as vaccine rollouts are underway. Additionally, some of the worst fears concerning the energy sector are easing with recent gains in energy prices.”
New listings also improved in February, but the gap between new listings and sales narrowed. This is causing the sales-to-new-listings ratio to rise to 65 percent, keeping the months of supply well below three months.
Conditions are far tighter in the detached sector of the market, especially for product priced below $600,000, where strong sellers’ market conditions are present with less than two months of supply.
The market has faced relatively low inventory levels compared to sales for the past several months and prices continue to trend up. In February, the residential benchmark price rose over the previous month and currently sits four per cent above last years’ levels.
Detached product has the lowest months of supply and is also exhibiting the most significant gains in prices. On the opposite end of the spectrum, the apartment condominium segment still has a relatively high level of inventory compared to sales, which is impacting price recovery for this property type.
On January 17, 2021 we received 7 offers on one of our listings that had been active for less than 48 hours!
As you can imagine, the seller was ecstatic. But you might be curious as to WHY we received so many offers?
The answer is because ALL OF THE ESSENTIAL components were there:
1. The property was properly prepared.
When we first viewed the property, it was still occupied and to understate the condition – it did not show well. The owners asked us if they needed to repair holes in the walls, paint and remove all of furniture and personal items from the home before they listed. We let them know that if the repairs were not made that the list price should not be more than $250,000. This was because the three most recent sales for similar sized homes which needed work sold for $225,000, $227,000 and $242,000. The sellers decided to undertake the work – which was significant.
2. Market conditions were reviewed on the listing day.
Some time had passed between our first viewing and the list date. In the meantime, the sellers removed all of the items from the home, repaired the holes in the walls, painted and cleaned. Market conditions had also changed. Although there were no new sales the listing inventory had come down and there was very little competition in the price range and area for a detached home. Because the subject property had a garage and the recent sales did not the owners decided to list the house for $265,000.00.
3. The home was well marketed.
Before activating the MLS® listing we had the property professionally photographed and measured, we determined who the target market would be and we created the listing copy to reflect the target market. We knew there would be lots of activity and boy was there! We had twelve showings in the first two days!
4. All interested parties were kept informed of the competition.
We eventually received seven – that’s right – seven offers! We kept each interested party informed of the number of offers including the REALTORS® who were requesting showings, thereby creating excitement and further demand. All those submitting offers were advised to submit their best offers because of the number of offers received.
5. The offer review, offer acceptance and counter-offer processes were conducted in line with industry protocols and the sellers’ legal rights.
We reviewed each offer with the sellers using a table to allow the sellers to easily sort the offers by superiority. The terms we reviewed were: Purchase price, deposit amount, closing day, conditions and the condition removal date. If an offer contained a financing condition, we reviewed the percentage of purchase price which would be financed as well as any other terms affecting the sellers’ position. In a perfect world there would be a clear winner with the highest price and zero conditions but that is not always the case. Three of the offers were for substantially less than list price. The sellers chose to accept the highest offer which contained one condition and made a counter-offer of price to a second buyer and to counter the offer in back-up position only. This second offer also had one condition. Because both owners were in assisted-living we emailed the two parties the intentions of the owners and informed them that signatures would be obtained the next day. In the meantime, the buyer from the second offer decided to increase their offer and remove their condition which made this offer the most attractive to the sellers. The buyer from the first offer was invited to change their offer but they did not.
What was the final outcome? A sale price of $290,000.00 and peace of mind for the sellers in knowing that the home was sold firm with no conditions.
Questions? If you would like to chat about multiple offer processes or about current market conditions, we would be happy to hear from you!
Remember all those moments you wished for more privacy and some space from your child who followed you everywhere, including into the bathroom? Well, you are about to get you wish, as they start to retreat into their bedrooms. One minute your kid is obsessed with PAWS PATROL the next, they are watching Sydney and the Max. It happens overnight and as a parent, the change from one stage of development to the next can be jarring. The transition from kid to teen can be difficult for a parent, as one minute they are your cuddly little guy and the next, ten feet apart isn’t far enough for them. Every day, friends are becoming more important and being accepted by their peers means things can change in a heartbeat and what was once cool, is now “So lame mom.” It can be hard for a parent to keep up.
Tweens need their own space. A place they can go to shut the door on mom and / or dad to chill out either alone or with friends. A room they feel is theirs. Decorating a tween’s room is a special time where you can learn more about your child, their every changing taste, and what is important to them when it comes to making their space their own. As they grow into their teens, they will include you less and less in their room’s décor decisions. Enjoy this time and make a memorable adventure out of the experience.
Including your tween in the process is important, after all it is the room where they will be spending a lot of time. Guiding them through the decision-making process will teach them how to make design decisions and work within a budget.
Start with the budget. How much are you willing to spend on updating their room? Let them know the budget and come back to it when they are deciding on what to purchase and which items to leave on the store shelves.
Do you have a theme in mind? Decorating kids and tweens rooms can be fun because we are able to bring fantasy into the room and be adventurous with the décor, unlike in the rest of the house. Does your tween have a favourite activity? A favourite story? Are they into sports or music? Here are some theme ideas to consider:
1. Romantic Princess
2. Urban Skatepark
3. Punk Girl
4. Soccer / Hockey / Football / Basketball
5. Snowboarding
6. Bohemian
7. Glamour
8. Film Noir
9. Techno nerd
10. Book nerd
When it comes to a Tween’s room function is important because they will be spending a lot of time in their rooms over the next few years. Since Tweens still have some toys or stuffies they don’t want to let go of yet, but they don’t want their friends to know they still have them, their room will need storage and the odd hiding spot. Shelving on the walls, in the closet, or as bookcases to hold storage boxes full of their stuff will fulfill this need nicely.
It is at this age where schools start to send them home with the dreaded homework, which ends up being one more task on your to do list of parenting. Consider putting a desk in their room for studying and that future computer they will need to complete homework assignments. Whether or not you agree to a computer in their room, they will need a desk to organize their schoolwork along with the little nick knacks that seem to appear.
If your child’s room is short on space, consider a loft bed with the desk underneath it and bean bag chair or a comfy chair. They will need their own hang out seating area, be it a window seat, a hanging rattan bubble, an armchair, or a pile of pillows, they need something to relax on while they contemplate their future or chat with friends.
Are you going to paint the walls? Take your tween to the paint store to peruse the swatches to pick and put up on the wall to see which colour they like. Giving them the option to choose the colour of their room will bring them into the process, teach them how to make choices, and generate a sense of pride when the job is done.
Time to go shopping with your tween to find all the pieces to bring the room together. Make sure you remember to take some of the paint swatches with you so you can see if the bedding will go with the colour of the walls. It will be interesting to see which bedding, sheets, and pillows your teen picks out. If they don’t match the colour of the paint, take the teaching moment to help them understand how to bring a room together. They will find lots of bits and bobbles to put into their room, ensure they understand how each decision affects the budget.
Want to save some cash? Check out thrift stores and restoration places where you can find old pieces of furniture and some funky retro lighting fixtures. Old furniture can be sanded and painted to fit with the room’s new colour pallet. Stick some wall stickers on and cut them where the drawers open to make the piece unique or attach some unique drawer pulls, like old skateboard wheels or hockey pucks. Spray paint old lighting fixtures and add glass beading for a funky chandelier.
Make sure your tween helps do the hard lifting to put the room together, being a part of the process will give them ownership and a sense of pride in a job well done. Not to mention, the wonderful memory you are about to make.
Have fun with the walls. Hang a whiteboard up or paint a portion of the wall space with chalkboard paint so they can make notes and doodle. Either find wall stickers or paint a mural on the wall. Think a mural is outside your skill set? Do you have access to a projector? Project a simple image onto the wall and trace it out with a pencil, then paint over the pencil marks – Voila one instant mural.
Worried about resale? Unless you are going to be selling in the next 6-12 months, go nuts and be unique. You can paint the room with a neutral colour before you list and move on to your next home. In the meantime, give your child a space as unique as they are.
Have questions about the Calgary Real Estate Market?
I would love to help! Use the link below to book a no obligation in person or video consultation.
January sales were the highest they have been for the month since 2014, as housing market momentum from the end of 2020 carried over into the start of 2021.
Sales activity improved across all product types and across all price ranges. “Discount lending rates are exceptionally low, which is likely attracting all types of buyers back into the market,” said CREB®chief economist Ann-Marie Lurie.
“New listings in the market were also slightly higher than what was available over the past two months, which is providing more options to purchasers.”
January’s new listings were 2,246 relative to the 1,208 sales in the market, causing inventories to edge up over December levels. These types of movements are typical for January, but 2021 is starting the year with 4,035 units in inventory. This is far lower than the past six years.
Benchmark prices remained at levels relatively consistent with prices recorded at the end of 2020, but they reflect a year-over-year gain just below two percent.
For those of us who are fortunate to still be working, many of us have been forced to work from home during the pandemic. Work spaces can be anything from a private, dedicated office space with doors that close, to a fold up table in a bedroom. Wifi can be strained due to the demand of many devices because of home schooling or couples working from home. We’ve all been in those Zoom meetings where screens freeze, pets and children wander in and out or embarrassing comments are made because someone has forgotten to mute. (Search for Zoom Meeting Fails on You Tube for some guaranteed laughs!)
Many companies have determined that they no longer require their employees to work from a downtown office building every day. This has created a new housing trend. Some home office workers are finding that their inner-city apartments are too small so they look for larger condominiums and those with families who no longer have to commute look for larger homes on larger lots further away from the core.
In either scenario the home office has become more important than ever. Which is why we have created a curated list of properties for sale with a variety of home office spaces in Calgary and area.
If you are looking to design your perfect home office, we found a great article on Entrepeneur.com entitled “How to Design the Ideal Home Office” by Professional designer Jo Heinz.
The article offers many tips – such as:
What are the most common mistakes people make when they’re setting up a home office?
There are five:
Thinking you can “tune out” the plasma screen on the wall. Don’t hang it anywhere near where you’ll be working.
Inadequate storage components
Lack of space for reference materials
Slow and inefficient equipment
Inadequate wire management (cords and wire spaghetti everywhere)
Ready to start looking at Calgary (& area) properties for sale with home offices?
If you would like us to create a customized search for a property with the ideal home office space for you, including the location of the office within the home, please let us know.
We would love to help! Use the links below to book a no obligation consultation:
Amidst economic challenges, housing market ends 2020 on a high note
City of Calgary, January 2021
With December sales of 1,199, this is the highest December total since 2007.
“Housing demand over the second-half of 2020 was far stronger than anticipated and nearly offset the initial impact caused by the shutdowns in spring. Even with the further restrictions imposed in December, it did not have the same negative impact on housing activity like we saw in the earlier part of the year,” said CREB® chief economist Ann-Marie Lurie.
Attractive interest rates along with prices that remain lower than several years ago have likely supported some of the recovery in the second half of the year. However, it is important to note that annual sales activity declined by one per cent compared to last year and remain well below long-term averages.
New listings in December increased by 11 per cent. However, the number of sales exceeded the number of new listings in December contributing to further declines in inventory.
Reductions in supply and improving demand in the second half of the year have contributed to some of the recent price improvements in the market. However, the recent gain in the benchmark price was not enough to offset earlier pullbacks as the annual residential benchmark price in Calgary declined by one per cent over last year.
The pandemic has resulted in a significant shift in economic conditions, yet the housing market is entering 2021 in far more balanced conditions than we have seen in over five years. This will help provide some cushion for the market moving into 2021, but conditions will continue to vary depending on price range, location, and product type.
For the sixth month in a row, sales in the Calgary market recorded a year-over-year gain.
Sales growth over the past several months has been the strongest seen in the past five years, but the activity has not been strong enough to offset the pullbacks from the spring. Year-to-date sales remain over three percent lower than last year’s levels.
New listings continue to slow, reducing inventory in the market. On a year-to-date basis, new listings have eased by nearly ten percent and are at the lowest level recorded since 2001. This has reduced the oversupply that has been impacting the market for nearly five years.
“The gains in sales in the latter part of this year have been a bit surprising considering the job losses and unemployment rate in our city,” said CREB® chief economist AnnMarie Lurie.
“However, it is important to note that the shift to more balanced conditions has been mostly driven by the reduction of supply.”
Tighter conditions in the housing market have contributed to some of the recent gains in benchmark prices. As of November, the benchmark price was $423,600. This is nearly two percent higher than last year’s levels.
However, conditions vary depending on price range. There is not a lot of supply for affordable homes in each product type because of high demand. This is likely causing differing price trends in the lower end of the market versus the higher end.
With strong gains in the detached sector, October sales in the city reached 1,764 units. This is a 23 percent increase over last year and well above longer-term averages.
The gain in citywide residential sales outpaced the growth in new listings, supporting tighter market conditions and improving prices.
“Over the past several years, higher lending rates and the stress test pushed many out of the detached housing market. However, recent declines in rates, combined with prices that are lower than several years ago, have brought back some of that demand,” said CREB® chief economist Ann-Marie Lurie.
“This is helping support more balanced conditions and price improvements in the market. However, price improvements are not occurring across all product type and price ranges and downside risk still hangs over future conditions.”
Improving sales over the past four months were not enough to offset the pullbacks in the second quarter, leaving year-to-date sales nearly six percent below last year’s levels.
The same is also true for prices. Benchmark prices have trended up over the past four months and October prices were slightly higher than 2019. On a year-to-date basis, prices are one percent lower than last year’s levels and nearly 10 percent below previous highs.
September sales activity jumped to 1,702 units, the strongest September total since 2014.
New listings in September improved over last month, but levels remained comparable to the previous year. The increase in sales relative to new listings did prevent any monthly gains in inventory levels, but supply in the market is still down 12 percent compared to last year.
“The recent rise in new listings, combined with low lending rates and softness in prices, has helped support some of the recent upward trend in sales,” said CREB® chief economist Ann-Marie Lurie.
“However, conditions vary significantly based on the price range and property type.”
The adjustment in supply relative to demand has caused the housing market to move toward more balanced conditions. The current 3.7 months of supply represents the most balanced conditions seen for September in over five years. This has helped support some of the recent monthly gains in prices.
Total residential benchmark prices have trended up over the past three months, resulting in September prices that are similar to prices recorded at the same time last year.
Despite some of the recent improvements, the impact of COVID-19 is still present. Year-to-date sales remain nearly nine percent below last year’s levels, while city-wide prices are still over one percent lower than last year. Considerable risk also weighs on the housing market due to economic uncertainty and a struggling labor market.
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