It’s Fall Once Again
Welcome to the fall edition of the Smith & Griffith Newsletter. As the leaves begin to paint our landscape in shades of red, orange, and gold, we're excited to bring you the latest insights and share essential tips for sellers and buyers to help you make the most of Alberta's real estate market this fall. So grab your pumpkin spice latte, get comfortable, and let's dive into the world of real estate.
Here is the latest from the Calgary Real Estate Board
The real estate market in Alberta continues to see record high sales amid historic low inventory, pushing prices higher. We have not seen summer inventory levels in the Province this low since 2015 but this is not from a lack of new inventory coming to market. With the demand, the Province experienced the highest number of sales for the month of August with over 53% more sales than the ten year average for the month!
“An influx of migrants coming from Ontario and British Columbia are likely contributing to some of the strength for higher priced properties, as the relative affordability could make migrants less sensitive to the recent gains in lending rates, said CREB® Chief Economist Ann-Marie Lurie. At the same time, continued strength in our labour market is supporting demand across all property types.” What was not expected was the robust demand in the higher price segments of the market despite higher lending rates. However, the robust demand is met with a shortage in supply. Housing inventory levels have remained notably low across various segments, encompassing the resale, new home, and rental markets. Despite relatively strong new home starts, these have not been sufficient to alleviate inventory constraints, primarily due to the influx of migrants. Resale supply has also encountered unexpected challenges, as higher lending rates and limited choices in supply have deterred existing homeowners from making changes.
A Sellers' Market
For those that want to time the market, these past few years have shown that timing the market is very difficult, if not impossible. Given the rising interest rates and inflation, lots would assume that the market would slow. However, the rules of supply and demand come into play with migration not slowing and limited supply, the markets remain incredibly strong with no signs of slowing. We fully anticipate the regular uptick in activity following the back to school rush this past week. Given the demand from people moving to the Province, it should make for a busy fall!
For most of the Alberta, we are in a seller’s market where the demand for homes significantly outweighs the supply of available properties. It is characterized by high demand, low supply, rising prices, and a competitive atmosphere that favors sellers. It's essential for buyers and sellers alike to understand these market dynamics to navigate successfully in such conditions. Call the Smith & Griffith team to help you navigate through this type of market.
Here are our top recommendations for sellers in a seller's market:
1. Pricing your home correctly is one of the most critical factors for success. While it can be tempting to aim for a higher price due to the competitive environment, it's essential to set a realistic and competitive asking price from the outset.
2. Stay informed about current market trends, including recent sales data, inventory levels, and buyer demand.
3. Be objective about your home's condition and how it compares to others on the market.
4. Make necessary repairs and improvements to enhance its appeal.
5. Understand that even in a seller's market, negotiations still occur.
6. Be prepared to negotiate terms and contingencies with buyers while maintaining a firm grasp of your home's value.
Buying a home in a seller's market can be challenging due to high demand and limited inventory, but it's still possible to succeed as a buyer with the right strategies.
Here are some of our top tips for buyers navigating a seller's market:
1. Get pre-approved for a mortgage, be ready to act quickly.
2. Be flexible in closing dates and other terms.
3. Don’t lowball.
4. Prepare for multiple offers.
5. Be patient and persistent.
Buying or selling in a seller's market can be challenging, but with careful preparation, a strong strategy, and the guidance from Rees and/or Kari, you can increase your chances of successfully securing your dream home or selling your property.
How Smith & Griffith Can Help
If you're considering PURCHASING, we can arrange an automatic MLS search email tailored to your buying preferences. You'll receive notifications as soon as new listings become available. If you're contemplating SELLING and desire an open discussion about the real estate market, our team is readily available to assist. Leveraging our extensive experience, knowledge, and market insight, we can offer an in-depth evaluation and comparative market analysis of your property. With our advanced tools and expertise, we can maximize your real estate returns. Reach out to us today!
Alberta's Rural Market
Alberta's rural areas have long been sought after for their natural beauty, wide-open spaces, and a slower pace of life, and this season is no exception. Just like in many parts of the country, Alberta's rural real estate market continues to see strong demand both local urban buyers seeking a change of pace, growth of farm families and out-of-province buyers looking to embrace a more rural or small town lifestyle. However, the supply of available properties remains limited, creating a competitive atmosphere where well-priced listings are quick to attract attention. Investors are eyeing Alberta's rural properties for their potential in various sectors, including agriculture, recreational land, and even eco-friendly developments. Whether you're looking for a weekend retreat, farmland, a new family home, or an investment property, Alberta's real estate market this fall offers an array of opportunities and we are here to help. Get to know us at smithgriffith.com.
Until our next edition, we wish you a season filled with warmth, comfort, and memorable moments as vibrant as the falling leaves. May our Alberta farmers enjoy a bountiful harvest season. As always, we extend our sincere appreciation to our real estate clients who continue to place their trust in us and for friends and family who support us each and every day.
Rees, Kari & Cassidy
“Opening Gates To The Country And Doors To The City”
