We have a Hot Calgary Market! What is happening to Calgary real estate market? Cash offers! Competing offers! Offers way over list price! Prices rising fast! Frustrated buyers! No condition offers! The detached market has gone a little crazy.
Detached Market: This is where the market has shifted dramatically. Prices are rising month over month. We have had a 14% increase in prices over the past 12 months and this is accelerating. We just had a 2% increase in the last month from previous month.
Why is this happening? Many reasons:
1) Net migration into Calgary is up.
Migration is one of the main drivers in house price increases.
2) Mortgage rates are low.
3) We are moving towards full employment.
4) Calgary house prices are very affordable compared to Toronto and Vancouver. Many young people are moving here.
5) Oil is over $90 and rising. And diversification is happening.
6) Very few homes on the market for buyers to choose. Low inventory!
Sellers are seeing multiple offers coming in as soon as they list their home. Some are cash offers way above list price. We are seeing unconditional Offers $50,000 and over the list price. The Attached and Row markets are following the detached market.
The apartment market is not as hectic and is a balanced market right now. But sales have dramatically increased. We are seeing sales closing in on the sales of 2007. The apartment market is turning and given the right conditions may follow the surge we had in 2007.