Calgary home sales have increased between September & October in 6 out of the last 9 years. Early indications are hinting that this year we’ll see that statistic change to 7 out of the last 10.
A total of 445 homes sold in the first week of October, an 11.25% increase from September and up 17.72% year-over-year. In fact, it’s the second best October start on record.
In September’s month-end report regarding new listings, CREB stated:
As Calgary’s market remains in seller’s territory, a notable shift is occurring with new listings.
While monthly levels of new listings have been declining since 2011, over the past three months the levels of new listings have improved.
The growth was not enough to cause any significant changes in inventory levels, but it has helped prevent further tightening in the market.
New listings this month are tracking 3.4% higher than last year. On the surface, this may seem like it will prevent further tightening and provide buyers with more choice.
But it’s not quite so simple, especially if it means renters are being displaced.
Landlords Cashing Out
Consider these figures:
3,355 out of the 27,507 listings year-to-date have been tenant occupied/tenant rights (12.2%)
During the same period last year 2,594 out of the 27,668 listed had renters in place (9.4%)
In 2011, 2,377 out of the 29,306 homes listed between January through October 7th had renters (8.1%)
Despite fewer listings on the market, the number of landlords cashing out at these high price levels is increasing.
The tenants generally have 1 of 3 options
- find another rental, further tightening the rental market (Global video: Rental market goes from bad to worse)
- purchase a home themselves (In some neighborhoods ownership makes more financial sense now than renting due to increased rents)
- the new owner may be purchasing the home for an investment and the tenants can stay in place
Do you think this increase in rental property listings is because of the “accidental” landlords that were created in 2008 when prices fell and inventory skyrocketed finally have an out due to today’s price levels, or is it the “smart money” cashing out before the next correction?