Bidding Wars Heat Up February Market

It may be -30°C as I type this, but the Calgary real estate market is anything but cold.

Calgarians were so determined to buy a home in February that nearly 1 in 5 paid above the asking price.  Of the 1854 properties that sold during the month, 364 or 19.6% of buyers paid higher than list price.

Compare that to the 10.4% of buyers from a year ago or the 6.1% from February 2012 that paid above asking. (see chart below)

Nearly 1/5 Calgarians paid above asking in February

Nearly 1/5 Calgarians paid above asking in February

The community of Tuscany led the way with 10 properties selling for more than asking.  Below are the communities with at least 5 homes with a SP/LP ratio of over 100%:

TUSCANY 10
EVERGREEN 8
ALTADORE_RIVER PARK 7
ASPEN WOODS 7
COVENTRY HILLS 7
STRATHCONA PARK 7
BEDDINGTON 6
COUGAR RIDGE 6
CONNAUGHT 5
GLAMORGAN 5
KILLARNEY_GLENGARRY 5
MCKENZIE LAKE 5
MCKENZIE TOWNE 5
MONTGOMERY 5
OGDEN_LYNNWD_MILLCAN 5
PANORAMA HILLS 5
SADDLERIDGE 5
SILVER SPRINGS 5
SPRINGBANK HILL 5
VICTORIA PARK 5
WHITEHORN 5

As sales rise and inventory continues to decrease year-over-year, it’s to be expected that buyers will find themselves in more situations where multiple offers are involved.

It’s no surprise then to see these year-over-year gains in February:

Single family homes
Average price: +6.14%
Median price: +9.71%
Sales: +1.91%

Condo-Apartment
Average price: +13.96%
Median price: +12.4%
Sales: +28.67%

Condo-Townhome
Average price: +11.96%
Median price: +10.91%
Sales: +20.45%

Check back on Monday when CREB releases the full statistics package.

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3 responses to “Bidding Wars Heat Up February Market

  1. Hey, Mike. Really appreciate all the information you post here. That said, one thing you’ve had me wondering about for the past year is the degree to which price gains in the condo and townhouse segments are being driven by higher quality inventory coming onto the market? After all, with more and more Calgarians embracing life in a high rise, it’s pretty clear that with each passing year Calgary has more and more high end condos/townhouses changing hands. Your thoughts?

  2. Great question, Michael. Most people feel more comfortable using average & median prices, but for purer data look to the MLS® HPI where price changes are not subject to being skewed by the composition of the properties sold.

    CREB writes: “It is often difficult to determine if average or median price fluctuations really reflect changes in buyers’ willingness to pay for certain housing attributes, or just changes in the volume of very expensive or inexpensive home sales from one time period to the next. The MLS® HPI removes that uncertainty.”

    Here’s a look back at Townhome average and median y/y price change compared to the Index:

    Index comparison to average and median prices

    Index comparison to average and median prices

  3. It’s beyond reason why these things happen especially when some of these homes are overpriced. Obviously, Calgarians have money to burn.

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