What happens when inventory becomes so short in supply, that it is impossible to buy?
This is a truly grappling problem we are starting to face in our market here in Calgary. Albeit, it is nice to see prices increase in our market. Lord knows we are long overdue for this change.
It's kind of like trick or treating when you were young. You get this load of awesome treats to dive right into, but your parents tell me you cannot have them until it is checked. Or, you are only allowed a treat after a certain task is done, or once a day.
What was the first thing that popped into your mind when you were told that?
I WANT IT MORE!
The same can be seen with the real estate market. Each day that passes where we don't have inventory to sustain the demand makes buyers want each scarce property even more.
I was visiting builders in Livingston last week with a client and you can't believe what we saw. Builders were turning down potential buyers right away.
Not because they didn't want their business, but because they didn't even have the land to reserve or sell to the buyers. Forget the time to build and the problems associated with that, but the access to land in new communities has also become so scarce that builders are turning down lot holds.
So not only do we have an issue of resale homes for sale, but developing a new home is also pushing back and stopping future development.
So when you say to yourself, "when the pandemic is over, things will normalize." I'd second guess that argument. If land cannot be sold now, development cannot start until they are sold. And when that starts, there are still labour issues from framers, electricians, etc that will delay that inventory from the market.
We are in a time of a significant shortage in our market that will continue to carry its residual effects well after our pandemic is over.
If you are a buyer now, and you can find something that works for you and your family, second-guessing a purchase right now is probably the worst thing you can do for your near future if homeownership is one of your goals.
Let's chat about it and I can show you why, right now, albeit tough, is your best opportunity to buy a home in Calgary for at least the next 2-3 years. Shoot me an email at firstname.lastname@example.org
Take care, be safe, and talk soon.