The stats are out and we have the data if you want a good deal.
Yes, it’s still cold outside!
Yes, the market stats are in and off again year over year 13% fewer sales.
Yes, prices have come down further!
There is currently a 5 month supply of inventory instead of the ideal 1-2 month supply. But, there were still nearly 1000 homes sold last month! If you’re a seller, you have to stand out from the competition and focus on who is buying and how to attract them. And understand that with high volumes of inventory, pricing does matter.
For buyers, there is a lot of opportunities to find great value. The best way to do this is to look where others aren’t. In challenging markets, most people are in search of foreclosures or distressed properties to flip. There is certainly an opportunity there but the risk is much higher as they’re sold “as is, where is” with no guarantees and the bank is often not as motivated to sell for a deep discount. Banks and lenders are some of the least motivated to sell as they are lenders of borrowed money they can carry a property with little to no interest. When they sell drastically below market value, they’re usually the one losing money.
Instead, or at least in addition to foreclosures, you should look for situations where a seller may be distressed. Most people want to avoid foreclosures at all cost, even if this means selling low. So when you’re house hunting for a deal, pay attention to the details.
Your Realtor has access to additional information such as occupancy (vacant, occupied, rented), Days On Market (DOM) and the historic selling path which includes how many times the property has been listed (with or without a sale), a record of the price adjustments, how long it has taken to sell in the past and, for what price.
You can, and should, view the land title records before you write an offer. This will provide additional valuable information in regards to motivation and caveats.
After collecting the data, compare it to similar inventory, asking price, location, condition, required improvements, and any additional value you specifically see in the property.
And the most important piece to consider is sellers ability to sell at a discount. Properties with little to no mortgage usually allow a lot more flexibility when it comes to the selling price when compared to a property mortgaged for more than the asking price. The latter is surprisingly common in this economic climate.
The ability to sell low is the first signal. The want or need to sell is the next step. A vacant property with no mortgage is a very strong signal that there is great value potential.
So get the data, analyze the facts, and get perspective from your real estate agent to strategize a plan to find great value and capitalize in a distressed market.
Contact us if you’d like to receive monthly stats on your community. Or if you’re looking to buy email our team and we will set you up on a search to get notifications or properties that match your criteria.
For the detailed market statistics from the Calgary Real Estate Board for February 2019 click HERE.
For more information on buying or selling a home pick up a copy of POSITIVELY SOLD.