Calgary Market Update
Ever hear: don't compare apples to oranges?
Why not? They’re both fruits.
– doesn’t that mean they are comparable?
The textures are different. The uses are different. And, simply put, it is easy to make an orange cake. Not so easy to make an orange pie. Apples just work better.
Many times people get confused with the headlines when it comes to Real Estate, comparing sales with prices.
Likes apples and oranges, "Sales" and “Pricing" are two different, yet not unconnected things.
Sales are the number of units, or properties that sold in a given time. Pricing refers to the dollars obtained for those sales. Usually, the price changes lag behind the sales activity. For example, in the last two years, the number of sales has dropped more as a percentage than the price has. However, eventually the market catches up to the activity and now in the last year we are seeing the prices follow suit with city-wide declines in average and benchmark pricing.
But is it all bad news?
Because, when the number of sales drops, and after prices catch up, the pendulum swings and a new shift happens.
(That’s shiFt happens for those that read that a little too quickly…)
Perhaps we are seeing that new shift coming on.
Inventory declined nearly 19% (Y/Y) meaning that buyers are once again not able to pick and choose as easily as they have been. This has happened across the city. And, in the NW, in particular, sales activity is starting to improve meaning homes are starting to sell again.
Will we immediately be seeing an increase in pricing to boom times? No, but just like baking a pie, if you use the right ingredients, it can still turn out okay.
So what are the right ingredients to sell a property?
Proper pricing to ensure you are not chasing the market is imperative.
Particular preparation that allows buyers to envision themselves in the property is certainly a boon to any listing, as well as proper presentation with online activity, signage and brochures that people will remember.
Patient partnership with your agent coupled with two-way communication that allows you, the seller to respond to the market is also paramount.
These are the ingredients that it takes to sell in today's market.