The first month of the new decade has already come and gone!
The annual Calgary Real Estate Board (CREB) forecast is now out and it should reassure you that 2020 won’t be a bad year to buy or sell a home in Calgary. That’s because not much is expected to change.
In this issue, we take you through a five year look-back and the 2020 forecasts on four key indicators: Home Prices, Sales, Time to Sell and Market Distribution.
If you’re buying or selling this year, remember that the right price, good advertising and beautiful staging can all help to ensure you sell fast for a good price… regardless of what the stats might be saying!
I hope to have the opportunity to work with you as 2020 continues.
Calgary’s home price is expected to stabilize this year. Our city has settled into what experts are calling the new normal. The 2020 price is forecast to be $419,734, down slightly (0.69 percent) from 2019. If you’re selling, you might get a little less for your property than you would have last year. If you’re buying, 2020 prices could be close to what’s called the bottom of the market, a great time to snag a bargain! That probably doesn’t mean making money on quick flips, though! Regardless, there are some very attractive properties out there at reasonable prices… as long as you’re buying for the long term (think five years, at least).
If you’re listing in 2020, what are your chances of selling? In most markets, if there are plenty of good-paying jobs and reasonable lending rates, you’ll see high real estate sales. The end of 2019 saw major layoffs in Calgary. If that continues into 2020, it’s not going to help sales volume. There could be lots of unsold properties. On the other hand, if we’re building new pipelines, people are going to be buying homes. The infographic shows the sales volume as a percentage of listings. Last year, just over half of the homes listed actually sold.
As a seller, you might need some patience if the “Time to Sell” trend illustrated by the infographic above continues into 2020. Last year, it took an average 59 days (approximately two months) to sell a home in Calgary. That was the longest wait in six years! We don’t know what to expect for 2020, although the forecast calls for supply and price stabilization. That could change if there’s massive job creation, of course. If you’re buying, you’ve got some time – and plenty of inventory – to have a good look around! And if you’re listing, keep in mind that a home can always sell very quickly if it’s priced right, well-advertised and beautifully staged.
In Calgary last year, the sales volume was much higher below $500,000 than above it. The highest number of sales was between $300,000 and $399,999. Fourteen homes sold over $3 Million. Forty-one went between $2 and $3 Million. Low numbers. Here’s the bright side of our recent market performance and current scenario: If you’re listing a lower-priced property, chances are it’ll sell, like many others at modest price points. If you’re planning to buy a higher-priced home, you might be able to pick it up at a lower price right now than in the future!
To view the full report, click here!