02-25-2014, 12:27 PM
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#1
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First Line Centre
Join Date: Oct 2006
Location: Fantasy Island
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Why is the market going crazy?
Just some anecdotal stories that I've been hearing from friends about places selling in 1 day, bidding wars, houses selling for way over list (like $50-100k). What's driving this in Calgary specifically? I get that interest rates are great but other markets are not experiencing this kind of activity as far as I know.
Is the same kind of sales activity happening in condos as well as houses?
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02-25-2014, 12:34 PM
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#2
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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It has been like this for nearly a year. Media always takes a while to report and then they drive it up even more.
Inventory continues to remain very low. Everyone has their own take however inventory was fairly low during the flood and the flood brought numerous buyers to the market to make a already low number even lower. Im still working with buyers from 8+ months ago waiting for the perfect place to come up. Roughly 6 of my last 10 offers written have resulted in multiple offers. As a positive, I have not seen people being foolish with their money and offering ridiculous amounts to win the bid.
I created a thread about a month ago telling people that you may want to consider listing now and not waiting for the spring.
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02-25-2014, 12:41 PM
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#3
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#1 Goaltender
Join Date: Apr 2009
Location: Back in Calgary!!
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I'm in the market as a buyer, and it is getting a little silly. Places go in less than a day on multiple offers. Some offers are with no conditions.
I'm glad that I'm more robotic than emotional when it comes to buying. I absolutely refuse to get sucked into the madness.
If it mean sitting on the sidelines for awhile then so be it. Although faint whispers from the "rising rates" monster are starting to be heard again.
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02-25-2014, 12:48 PM
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#4
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First Line Centre
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Are these isolated incidents? Because I saw a few listing on my streets that never sold.
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02-25-2014, 12:53 PM
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#5
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First Line Centre
Join Date: Oct 2006
Location: Fantasy Island
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Condos too, then? All my anecdotal stories have been about single family homes, specifically.
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02-25-2014, 12:58 PM
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#6
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Backup Goalie
Join Date: Dec 2013
Exp:
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there isn't a shortage of listings. There is a shortage of quality listings at fair prices that cater to middle class people that want to buy a place to live in. Those are the ones that sell in 15 minutes with multiple offers. Prices are high and buyers are picky so they end up fighting over the same rare places instead of settling for the thousands of over priced mediocre listings that are aplenty. You can't go on realtor.ca and tell me there's a shortage of listings. Once sellers face reality that buyers aren't going to pay stupid prices for their places, lower prices to reflect actual market prices that sell, then the so called "shortage" will be alleviated.
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02-25-2014, 01:06 PM
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#7
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Crash and Bang Winger
Join Date: Aug 2010
Location: Calgary
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Calgary has plenty of listings as do the outer areas (mine in Okotoks). It has to do more with houses per price range. Listings in the $400k range are going fast while ones above are slower to sell.
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02-25-2014, 01:19 PM
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#8
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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Listings in the 400k range are always quick to go....its the most affordable sfh price bracket and has the highest demand.
To say the ones priced higher take longer is not true. There is a ton of demand for luxury properties in this city right now.
There is a shortage of listings. Try telling buyer clientele that there is no shortage when we have seen everything available and are stuck waiting on something new. When a new listing hits, we have 24 hours to get in or it can be too late.
This type of market brings many unrealistic sellers who hear about the OP's thread and then list at a amount that is not going to bring an offer. They sit on the market for 3 months and then the listing is beat up and has very little interest.
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02-25-2014, 02:58 PM
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#9
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Unfrozen Caveman Lawyer
Join Date: Oct 2002
Location: Winebar Kensington
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As others mentioned, I think the biggest factor is lack of inventory, especially in that mid-range price point.
Our economy is still attracting many people (low supply, high demand):
Alberta economy attracting more people
Demographic growth almost three times higher than national average
http://www.calgaryherald.com/busines...511/story.html
“Net migration is forecast to total 30,000 in 2013, up from 29,309 in 2012. In 2014, net migration is forecast to decline to 23,000. Improving economic opportunities in other jurisdictions will moderate net migration, but gains are still expected from international and interprovincial sources.”
“These migrants tend to be people in their 20s and often at the age of starting young families,” he said. “A young population brings both economic benefits and challenges. The benefits are that young people spend disproportionately more than older people. They tend to be taking out mortgages on houses and spending money on things like eating out, new clothes for children, and recreational activities.
Last edited by troutman; 02-25-2014 at 03:02 PM.
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02-25-2014, 04:49 PM
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#10
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First Line Centre
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Quote:
Originally Posted by Realtor 1
There is a ton of demand for luxury properties in this city right now.
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What's the definition for luxury properties right now? Those over a million bucks?
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02-26-2014, 09:13 AM
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#11
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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Quote:
Originally Posted by darklord700
What's the definition for luxury properties right now? Those over a million bucks?
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Correct!
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02-26-2014, 09:19 AM
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#12
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First Line Centre
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Quote:
Originally Posted by Realtor 1
Correct!
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That's scary. I know a few 30 year old couples buying $600K-$700K houses as their first "starter home". Not sure how much equities they have in the house but I suspect the $1M luxury property definition won't hold true for long.
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02-26-2014, 09:41 AM
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#13
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Unfrozen Caveman Lawyer
Join Date: Oct 2002
Location: Winebar Kensington
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http://issuu.com/wall2wall/docs/cal_...598696/6736738
I got this Luxury Living in Calgary magazine delivered to my mailbox yesterday. Not sure why - I don't live in a Luxury Home. There are some absurd homes in this magazine. Indoor swimming pools, $100K home theaters etc.
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02-26-2014, 09:50 AM
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#14
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Crash and Bang Winger
Join Date: Dec 2010
Location: Victoria
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Girlfriend and I just bought into a place, moving in Friday.
We have missed out on previous opportunities, as some places have been going quick. The condo we just moved into, we were motivated to offer and do the deal quick since we didn't want to miss out again. Still, place was on the market for 3 weeks and we were able to negotiate for what we consider a reasonable price. It was a condo, and we suspect the condo fees (480/mth) had something to do with our ability to ask for a lower price.
Our experience is that yes, it is hectic. Regular listings seem to go quick, it was unusual for any of our places to sit on the market for even close to a month. Many places going in a matter of a week or two. and of three offers, 2 of them had more than one other competing offer at the end of the day.
Sorry Realtor1, would have asked for help had I not had a family friend involved!
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02-26-2014, 09:56 AM
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#15
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Crash and Bang Winger
Join Date: Dec 2010
Location: Victoria
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Quote:
Originally Posted by lorenavedon
there isn't a shortage of listings. There is a shortage of quality listings at fair prices that cater to middle class people that want to buy a place to live in. Those are the ones that sell in 15 minutes with multiple offers. Prices are high and buyers are picky so they end up fighting over the same rare places instead of settling for the thousands of over priced mediocre listings that are aplenty. You can't go on realtor.ca and tell me there's a shortage of listings. Once sellers face reality that buyers aren't going to pay stupid prices for their places, lower prices to reflect actual market prices that sell, then the so called "shortage" will be alleviated.
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This is bang on from our experience. There were many places available but at unreasonably inflated prices. They would sit and sit. Made me wonder about our place...
We negotiated down to 238 on this (Keep in mind the condo fees):
http://www.youtube.com/watch?v=c_1U3yWSY-w
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02-26-2014, 11:04 AM
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#16
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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^ sent pm re that property
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02-26-2014, 11:38 AM
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#17
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Franchise Player
Join Date: Feb 2011
Location: Somewhere down the crazy river.
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Not sure if this is the right thread, but is there ever a time to consider selling, taking a profit and renting for a while. Is it too unpredictable to expect prices to come down to 2006 levels?
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02-26-2014, 11:44 AM
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#18
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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I have thought of the same thing Wormius however a major profit would need to be had after considering all the expenses/trouble involved/rent/risking the market to come down.
Just my 0.02
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02-26-2014, 12:05 PM
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#19
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Franchise Player
Join Date: Feb 2011
Location: Somewhere down the crazy river.
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What would you think a major profit would have to be to make it worth it? I am not certain, but I think we would be somewhere around $200k since we bought. Maybe that's not enough to make the jump. It's depressing to have the equity there now, and thinking it could diminish before we decide to move anyway.
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02-26-2014, 12:06 PM
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#20
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First Line Centre
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Quote:
Originally Posted by something
We negotiated down to 238 on this (Keep in mind the condo fees):
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Seems to be a steal for $238K. Make sure you read the board meeting minutes to make sure there's nothing you need to pay to fix.
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