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Calgary Is Now a Sellers’ Market: Report

Written by Posted On Thursday, 15 August 2019 11:14

By: Zoocasa

Almost all of Calgary is a sellers’ market according to a new report by Zoocasa, a tech-first brokerage.

Zoocasa calculated the sales-to-new-listings ratio for each neighbourhood and property type in Calgary by dividing the number of sales by new listings during the month of July. A ratio over 60% is a sellers’ market while below 40% is a buyers’ market, and in between that range can be considered balanced.

“It’s important for both buyers and sellers to understand these dynamics in their local markets, as it’s key to setting their listing or offer strategies,” says Penelope Graham, managing editor at Zoocasa. “For example, in a sellers’ market, buyers may find themselves competing against others in multiple-offer situations, which can drive up prices, and may also need to resort to tactics such as dropping offer conditions or being more flexible with closing.” 

In contrast, in a buyer’s market sellers are vying for attention and buyers can name their demands and conditions. 

Half of all Calgary Markets Sellers'

 
Zoocasa found that sellers of single-family homes have the advantage in four neighbourhoods in Calgary, while four are balanced. Meanwhile, sellers of Calgary condos have the advantage in five districts, while two are balanced, and just a single area is a buyers market. 

This news is surprising since Calgary has been suffering from a glut of inventory and a decline in oil prices for several years now. Benchmark prices are down 8.39% from five years ago this July and 3.53% from July 2018, according to the Canadian Real Estate Association. But the sales-to-new-listings ratio is not a measure of affordability; rather, it’s one of competitiveness. 

The overall ratio in Calgary is now 62%, up from just 56% last year. These metrics indicate that houses for sale in Calgary may be rebounding. 

“The quarterly Residential Market sales forecast released by the Canadian Real Estate Association in June finds that while sales are to trend downward by -0.9% in the province of Alberta as a whole this year, they’ll rebound by 4.7% in 2020,” Graham says.

Buyers for single-family homes are to face the most competition in the South East, where the ratio stands at 79% and the benchmark price is $438,400. Buyers will face the least competition in the City Centre, although they’ll be paying the highest prices. The ratio is balanced at just 48%, but prices are $658,000.

Meanwhile, condo buyers have the upper hand in the North East with a ratio of just 28% and prices at $225,000. But if they head to the high-demand East, they’ll be facing stiff competition with a ratio at 83%. Luckily, units are priced at an affordable $185,500.

Want more information on Calgary’s housing market? Check out the infographic above. 

Zoocasa is a full-service brokerage that offers advanced online search tools to empower Canadians with the data and expertise they need to make more successful real estate decisions. View real estate listings at zoocasa.com or download our free iOS app.

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Zoocasa

Zoocasa is a full-service brokerage that offers advanced online search tools to empower Canadians with the data and expertise they need to make more successful real estate decisions. View real estate listings at zoocasa.com or download our free iOS app.

https://www.zoocasa.com
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