Monday, November 1, 2010
October Market Overview
Buyer's are definitely cautious about buying a new home in the current market. A lot of people are waiting to see if prices fall before they purchase a new home. The statistics for October show that home sales are down compared to September and also to October of last year. Total sales are down 37% compared to last October and 10% compared to September. Prices are down as well. The average sale price is down about 1% from last October, and about 2% from last month. Considering that the average sale price for a property in Calgary in October was $404,183 that means that 1% equals roughly $4000.
The indicators that show where prices may be going, are a little more stable. The absorption rate, or how long it would take to sell all of the current active listings, at the current sales rate stayed relatively the similar to September at about 5 and a half months. The average days on market (52), and sale price to list price percentage (96) were pretty similar as well. While this means that it doesn't look like prices are going to fall off a cliff, we probably won't see prices increasing anytime soon either.
If you are thinking of selling a property in the next 6 months, I would suggest that you put it on the market for sale sooner rather than later. Spring will bring more buyers (hopefully), but there will be a lot more competition from other home sellers for those buyers. We also may see a rise in interest rates in the next Spring, which means that homes will be less affordable compared to the rates a buyer can get now. Combine that with slow sales continuing throughout the rest of the year, prices could go down further. Getting a sale by the end of the year could mean several thousand dollars more in your pocket than if you waited for spring.
To view the October statistics click this link: http://mtnpark.ca/_media/Documents/Oct10%20Market%20Trends.pdf
As always, I am happy to answer any questions that you might have about the Calgary Real Estate market.
WARREN PHIPPS - MOUNTAIN PARK REAL ESTATE LTD