Times are good for Calgary home sellers. Multiple factors have tilted the playing field and buyers are having a difficult time finding any leverage during negotiations. Here’s why sellers have the upper hand today:
Rate Holds Expiring: There are buyers scouring the market that still have rate holds of 2.9% or lower. However, those rate commitments will be expiring shortly putting the squeeze on buyers to make quicker decisions.
Low inventory: There are currently only 4,073 homes for sale in Calgary, a drop of -23.28% from the same time last September, and down -38.7% and -41.8% from September 2011 & 2010 month-end figures.
Buyer Competition: Sales last month were up 27% y/y and was the second best August on record and highest August sales level since 2005. (Check back tomorrow for the September 1-14 update) While not exactly quantifiable, the June flood has likely also pushed some renters and owners with damaged homes into the market resulting in additional competition for buyers.
Facing a rate hike of nearly 1% and fewer listings pursued by more people have added considerable pressure on buyers, forcing them to acquiesce to seller asking prices and demands.
Consider the month-to-date figures: 57 homes have sold for list price while 90 more have sold for over asking. This means 18% of the sales this month have been at list price or above. Compare that with 10.1% (64/635) last year, 7.3% (43/592) in 2011 and only 4.8% (24/496) in 2010 during September 1-13.