The real estate market this week has been a whirlwind of insanity in the single-family market. The below stats are as of the day of this publication.
There are a couple of different data points I'd like to outline:
The number of active listings has dropped 32% from this same time last year
The number of sales has increased nearly 88% since the same time last year
The median price has grown nearly 11% since the same time last year.
These are staggering numbers to see just over a year over year time frame and bring evidence to the argument that our market has significantly changed. I
But what is driving this? COVID is here and by no means is it leaving any time soon. Lower than expected vaccine levels are delaying reopenings for the most part. This blog has your answer!
Albertans are resillent.
That is the number one reason why our market has seen such a resurgence in the last month or so at these significant levels. The fact that we as a province are seeing such lower case counts shows that we are taking this pandemic seriously. We are following protocols, limiting social gatherings, and above all else, taking care of one another.
This includes having fewer homes for buyers to come through and see that are for sale. COVID is unique in that it gives the power back to the seller to decide whether to sell or not. And let's be honest, most of us have compromised individuals in our homes that are stopping us to allow our home to hit the market and be open for buyers to see.
But there is another component we need to take into account.
We want things to open up as fast as they can. We want our economy back and are doing all we can to make sure we can do that sooner than later. So we can have our small businesses back and we can move on from this dark time in our lives.
The fact that we are doing so well right now means that might happen sooner than later. And when the economy does start to open up again, guess what happens. The interest rates start to become something the lenders will adjust to increase their bottom line.
This is where I remember $1.49 days. Such a great time for savings wasn't it? I remember line ups while I worked at CO-OP and how crazy the store would get. Well, as of yesterday, an insured (less than 20% down payment) mortgage was offered at 1.49%.
Here is your frenzy back in a strong way!
Buyers are coming out of the woodwork to take advantage of the lower rates that will significantly provide them savings over the next 5 years. And they are willing to pay more (as we saw in the stats above) than last year to do so.
These are the reasons our market in the single-family detached sector is doing exceptionally well. Move-up buyers and first-time buyers are seeing fair pricing, lower rates and are taking action in a big way. If you are a buyer, know you have lots of competition right now. If you are a seller, enjoy this time of better pricing.
I have the great fortune of working with some amazing buyers and sellers. If you have questions about the process, how you can compete as a buyer and what we can do to get you in the best position as a seller, I'd love to chat with you.
M: (403) 354-5664