Good time to buy?
Good time to sell?
If you’re thinking about buying or selling a home today, no doubt you’re asking one of these two questions.
While it’s important to note that Real Estate prices and market conditions are influenced by a variety of factors including location, property type, condition, interest rates, unemployment rates, population growth and affordability – one of the most used predictors is simple law of supply and demand.
Here are 3 types of real estate markets that use the principles of supply and demand to predict success for buyers or sellers.
1. A Buyer's Market
A buyers market is when there are more homes for sale (supply) then there are buyers (demand) for them. In this type of market, buyers, have the advantage with more inventory to choose from, prices remain stable or sometimes soften with sellers more open to negotiating.
2. A Seller's Market
A seller’s market is when there is more buyers (demand) then there are current homes for sale (supply). In a strong seller’s market, sellers are in the drivers seat. Prices strengthen or increase; homes sell quicker and in some cases, sellers get competitive offers and sell over asking price.
3. A Balanced Market
A balanced market is when there are equal numbers of buyers and sellers in the market. Homes sell in a reasonable time frame and prices remain stable. This is a healthy Real Estate market . One that is good for both buyers and sellers.
So what type of market are we experiencing right now?
Calgary’s first quarter of 2023 has experienced the lowest inventory levels since 2006, putting us firmly in the seller’s territory. Low inventory levels leave buyer’s with limited choice, once again driving up home prices.
Being one of the most affordable major cities in Canada, Calgary has been blessed with high levels of migration from around and outside of the country over the past year – which has supported demand. The real challenge has been centred around supply.
Because of rising home prices and interest rates, homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. With spring in full swing and the market beginning to pick up again we are hopeful that this will bring a more balanced market back to the city for the remainder of the year.
What does this mean for you?
Well, if you’re considering to sell your property, this is a great time to get the ball rolling! You can generally expect a quick and profitable turn over.
And if you’re looking to buy – well you’ve come to the right place! Check out one of our previous blog posts containing tips on how to successfully purchase a home in a highly competitive market. It is still possible to find your dream home in a Seller’s market. Our team is extremely experienced and knowledgeable and would love to help you! If this interests you, let’s connect!
