When I see the stories coming out on the Toronto market I have to shake my head. Multiple offers. Homes going $100,000 over asking price. The activity there carries all the warning signs of people making irrational decisions – basing their judgment on emotion rather than true value.
In Calgary, obviously we are working through some challenging economic times. But from a real estate perspective, compared to what’s happening in Toronto, there is a lot to like about the situation in Calgary, where in my opinion the numbers make a lot more sense.
Numbers make more sense in YYC: Investors taking notice
Even at the highest points in Calgary things never got quite as extreme as what we’re seeing in Toronto right now. I recall at higher price points seeing multiple offers drive prices up by $50,000 or a rare spike at $80,000, but not $100,000 or more on a regular basis.
Toronto is great if you can stomach the risk. But buyers in Calgary can have confidence the YCC market, which has held relatively stable in the face of many short-term obstacles, represents solid value and a strong investment over the long term.
Interest and activity heating up at key price points
Stories like this one, “‘Crazy’ real estate bidding wars infect the suburbs: Frustrated Toronto and Vancouver buyers invade nearby regions, sparking bidding wars,” show the less than ideal trends driving multiple offers in other markets.
By contrast, Calgary is actually starting to see some substantial multiple offer activity, but in a way that is far less extreme and much more fundamentally sound. This has been a noticeable rising trend in recent weeks, particularly for single family homes offered at $550,000 or less. This is something we are now seeing every weekend at this price point.
This reflects two things. First, the market is recognizing the very good value at that level, with the potential for this trend to expand to increasingly higher price points as the market rebounds more fully. Second, there has been a growing buzz that the YYC market downturn has stabilized and the bottom has been passed. Prospective buyers who had been sitting on the sidelines are now starting to get active and we’re seeing that reflected in the latest market activity.
Bottom line? The Calgary market is showing its resiliency and showing signs of turning the corner. As a result, there rising opportunity taking shape today for both buyers and sellers.
Call Sam anytime at 403-830-8331 for more insights and advice on the Calgary real estate market.