Now is a Great Time To Buy!
Over the last couple of months, we have seen stability in the Calgary and Area Market. The absorption rates, sales to new listing ratios, and total sales are stabilizing. Versus a year ago, we are seeing a little more inventory starting to come to market – likely because of marginally better market conditions.
With this in mind, let’s look at some of the important real estate numbers from August 2017:
Absorption Rate: (0-2 months of supply is a seller’s market, 2-3.5 months of supply is balance, and 4 or over becomes a buyer’s market)
- City of Calgary – There is 4 months of supply.
- Single Family Detached – There is 3.21 months of supply. Some of the detached home markets are starting to see very tight supply, some specific price ranges and areas are even seeing multiple offers!
- Attached Homes – There is 4.40 months of supply, representing the high end of balanced market conditions.
- Apartments – There is 7 months of supply. This specific market continues to have very high inventory versus the current demand. There will be continued downward pressure in this market segment.
Sales to New Listings: (Ratio of under 0.6 indicates more of a buyer’s market, 0.6-0.8 indicates a balanced market, and over 0.8 indicates movement towards a seller’s market)
- City of Calgary – There are 0.55 sales for every new listing
- Single Family Detached – There are 0.6 sales for every new listing
- Attached Homes – There are 0.54 sales for every new listing
- Apartments – There are 0.42 sales for every new listing
Total Sales: Down about 6% versus a year ago
New Listings: Up by 11%
Total Inventory: Up 17%.
With the stabilization of the market, it seems to indicate this might be our “new normal” for a while, making this a Great Time to Buy especially for move-up buyers and investors. There are some amazing buying opportunities in this market for prudent buyers who are well prepared and educated on the market conditions. Some sellers are still in situations where they “need to sell”. Planning, education, and preparation are the key elements to success in this market.
If you are thinking of buying, selling, or investing – we are here to help! Please, contact us to discuss your real estate goals so we can set you up for success in today’s market.