This market is ever-changing. It's a beast that can change from bull to bear in a heartbeat.
Just take a second and think about what has influenced this week. The cancelation of Keystone XL, the shortage of vaccines, and our provincial government focusing on trade issues with the US. All of these factors would scare off investors in our market. It would scare off new homeowners that are wanting to get into their first home.
But we are a resilient bunch here in Alberta. With all of the above issues (just in this one week I might reiterate), we are seeing a soaring number of sales, shortage of inventory and we have more and more people each day wanting a get into homeownership.
So how are we doing this week? Below are the stats for the single-family market.
Sales are up 34.5% from this same time in January 2021. This is understandable because we just hit our first anniversary for the first case of COVID in Canada. We would not have seen the effects on the industry in January 2020.
But 34.5% is insane. However, rather than focus on the sales, which is always nice to see, we need to focus on the inventory side of things in this breakdown. Active listings are down 32.4% and new listings are down 12.3%. In my previous breakdowns, you might have seen me mention that COVID is unique to our market because it really shows you how a single individual can really affect our market. Restrictions mean no visitors in homes, no open houses, hesitation to list homes for sale due to spread, and lower inventory available for buyers.
This continued decline in inventory is what is really driving up prices in our segment. If you follow me on Instagram (@alyjanmohamedyyc) you might have heard my story about one property that had 16 showings in one day and 3 offers in Panorama. This is what we as realtors are seeing in the market right now.
My buyer clients are all hyper-focused on what new listings come out each day and I have told them all that they need to be available as soon as possible to see homes to be the first in the door. Simply waiting for the weekend to see homes is too slow in our market right now. I'm sure most buyers in our market are doing the same.
But I hear it all the time. "The spring market is when all the good inventory comes up. That is when all the inventory will become available". Yes, this could be true. But I would argue we are already seeing a buyer frenzy with wanting to find their next home now. Why? The lower rates right now. We are certain for now the rates are remaining the same. We can't say the same for the spring market.
We are working with circumstances that are ever-changing. New government programs, restrictions, trade issues, etc, etc. The list can go on and on. However, now, pricing is still reasonable for buyers and the rates are where they are now to make the most optimal time to buy.
Sellers need to keep this in mind when considering when to sell. The spring market is coming, yes, without a doubt. But what if you could get ahead of it? Wouldn't you?
If you'd like to connect about your home value right now or what you can expect from the market today, send me an email at firstname.lastname@example.org with your address and some notes about your home or complete the form I have on my website to leave some information (click here and scroll to the bottom). Even if you aren't planning to sell right now, let's connect regardless. I'd love to become your trusted advisor.
I hope we can connect. Take care and stay safe.