Are we in a seller’s or buyer’s market?
When considering selling or buying a home, one of the things you look at is the type of market Calgary is currently in. This can be a buyer’s market, a seller’s market or a balanced market. Here you find in short what those type of markets mean and how they influence.
Seller’s Market: A seller’s market is considered a “hot” market. This type of market is created when demand is greater than supply. As a result, homes usually sell faster and there may even be multiple offers. As a buyer, you need to consider that many homes will sell above the asking price; in other words, you may have less room to negotiate, and may encounter competing offers. Though most buyers want to get a home for the lowest price possible, reducing your offer could mean opening the door for another buyer instead.
Buyer’s or a Seller’s Market?
In Calgary we speak of a seller’s market when the inventory level is good for less than 3 months.
Buyer’s Market: A buyer’s market is a slower market. This type of market occurs when supply is greater than demand, the number of available homes exceeding the number of buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. As a buyer, you will have more selection and flexibility in terms of negotiating toward a lower price. Even if your initial offered price is too low, the seller will be more likely to come back with a counter-offer, so that you can begin the negotiation process.
We speak of a buyer’s market in Calgary when the inventory level is more than 4 months.
Balanced Market: In a balanced market, supply equals demand, the number of available homes on the market roughly equal to the number of buyers. When a market is balanced there aren’t any concrete rules guiding whether you should make an offer at the higher end of your range or the lower end. Prices will be stable, and homes will sell within a reasonable period of time. You will have a decent number of homes to choose from, and you are likely to encounter limited or no competition for offers on the home of your choice.
We speak of a balanced market when the inventory is about 3 to 4 months.
Contact us at 403 630 5190 or 403 978 5267 if you would like to know the current type of market in Calgary right now.