Sellers In Control Of Calgary’s Real Estate Market

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.

September Percentage List Above

5 responses to “Sellers In Control Of Calgary’s Real Estate Market

  1. Hi Mike,

    I have been in the market for our first home for almost 8 months and I’m concerned our agent is not really helping us with our search and might be part of the problem. Its also getting tougher to find a home so I want to take action quickly. Since the agent has been with us all this time, I want to be fair and rate the agent’s work against what a typically good buyer’s agent would do to help find a home. I’ve searched your posts for that information and have not been successful. Would you mind pointing me to a link for the post if there was one? and if there isn’t would you be so kind as to post one?

  2. Hello Sam,

    Thanks for your suggestion – that’s a great topic for a future post.

    May I ask why you believe your agent is part of the problem?

  3. I don’t think the agent has been proactive assisting in the search, and a little concerned about the lack of research on the few houses we were interested in and community recommendations, these are some of the reasons I’m concerned today. The overall feeling we need a change is being fueled by family advice to move on to a different agent. Thanks for considering my suggestion Mike!

  4. Pingback: 1-in-5 Calgarians Paying Full Asking Or Above | Calgary Real Estate Review

  5. Pingback: Mortgage Rates Edge Lower – Find the Best Rate | Calgary Real Estate Review

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