Reports Of The Market Heating Up, True or False?

Real Estate Sales reporting by agents is often based on their personal experiences, and "feelings".  It's quite common that you'll talk to a real estate agent and they will say things like "It feels like it;s getting busier out there".

I'm sure I can fine anecdotal evidence and quotes from several real estate agents to support "busier market" statements.  The question is are these factual statements or subjective ones?

The Numbers:

Single Family Sales reported in February 2012 are up 35% in sales volume, up 52% in reported sales dollars, up 12% in the reported sale price and the days on market decreased 31%.

 The short answer to the question is the market better would be... Yes.

I know you hear all the time "You Should buy NOW!!!" from real estate agents.  Based on current conditions, that statement is probably more true that it has been in quite some time.  Obviously if your personal financial situation is such that you can't and it doesn't make sense then don't.  However what is the criteria for  "Now is a good time to buy?"

  • Sales Volume increasing
  • Price is no longer declining but looks like it has bottomed out or in initial stages of a climb
  • Interest rates maintain affordability
  • Economic and Employment Stability.

I'm no banker, and not an economist but I do believe that the economy in Central Alberta, Alberta and Canada is fairing quite well and our future is bright.  As for the interest rates, I can speak from personal experience and tell yo I'm much more happy with my new mortgage at 3.5% than I was when I first bought my home at 7.75%.  I'm seriously thinking locking in for 10 years is a smart thing to do if you plan on being there for that long.

How about price?

Well averages are a funny thing but they do show you where we're at and where we are trending.  It appears to have bottomed out and trending up.

Sales Volume:

Volume is trending up as well.

What about reports of "multiple offers" and sales above list price? 

Those are also true.  While there are actually not a lot of offers going above list price, we are seeing a list price to sale price ratio that is improving or moving closer together than we have in the past.  You can see in the above picture that in the last 30 days we only have 3 listings reporting a sale price above list price at (1.01, 1.02 and 1.03).

If you've been waiting for things to settle down and bottom out.  It looks like that's happened and it is true the market is warming up from the cold depths of 2010 and 2011.

What more do you need to know?  Is the time right now to buy?

Patrick

@pgalesloot

Please note all stats are taken from the Central Alberta REALTORS® Association MLS® residential numbers only. 

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