With a climbing unemployment rate and few signs of the economy turning around, the month of February saw continued decline in Calgary home sales. The low volume of sales in February did not come as a surprise to anyone in the real estate industry. Continue reading this week’s blog as I break down the numbers for February.
- Total Sales: 1,121 down 37% lower than long-term averages for the month
- February Unadjusted benchmark prices = $445,000
- Benchmark prices down .63% from January
- Benchmark prices down 3.45% from last year
- Inventory levels remain high at 5,681 units
- Detached benchmark price was $504,400 (down .71% from January)
- Detached and apartment sales down and are at lowest February levels in over 10 years
Supply & Demand
- Decreased amount of new listings but inventory levels still remain high
- Decreased home sales and increased inventory = Lower Prices
- Steady increase of inventory and No change predicted in the economy over the next few months means, continued buyer’s market
What Does It All Mean?
In the current market sellers need to have realistic and strategic pricing for their homes. Everyone wants to make massive profits when selling real estate, but home sellers have to price their homes according to current market condition. For example, if a homebuyer’s range is at $30,000 less than your listed price, they won’t even consider putting in an offer. The number of units for sale in a given neighborhood will also help determine prices.
February was an extension of January, which meant lower sales and higher inventory. The continued good news is that homebuyers have tons of selection and with the lower prices allows for many first time buyers to enter the market. If you want to compete in the buyer’s market, listing prices, as I mentioned above, needs to be strategic, realistic and fair.
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For more information on the mortgage process or the fun side of real estate, finding a home, contact me today in Calgary at firstname.lastname@example.org