The most recent real estate statistics for September offer some insightful and important notes for sellers in Calgary. Selling a home can be frustrating when the market slows down. I know, because my husband and I are going through the process of selling our home in Edmonton right now.
In a market like the one we have in Calgary right now, it’s not unheard of to not get any showings over the course of a week. There’s no specific reason for this; there’s just not a lot of urgency at the moment. Sellers need to be patient because impatience doesn’t actually hurry anything along. Right now, we’re in somewhat of a buyer’s market, which means homes are going to stay up for sale a little longer than before and may sell for a little less than before.
Another thing sellers need to think about is the new law that requires mortgage borrowers undergo a payment stress test. The Office of the Superintendent of Financial Institutions (OSFI) decided that as of January 1, 2018, conventional mortgage borrowers with more than 20% down will need to provide proof that they can continue payments if the interest rates rise more than 2.0%.
This definitely affects both sellers and buyers. As buyers face some restrictions in maximum mortgage amounts, sellers with higher priced homes may see some reduction in showings and inquiries. Buyers who currently don’t require mortgage insurance will need at least 20% more income to buy the same home they can buy today. That is a massive change.
It’s also important to note that if you have a house on the market right now and it does not close before January 1, the new law goes into effect and any buyers who are already pre-qualified to buy your home will need to be re-qualified.
My best advice in this market is to stay grounded. Worry doesn’t actually help when it comes to home sales. Information and patience do, though.
Just as in any market, some homes come on and sell so quickly that we start to wonder if there’s something wrong with our property, or the way it’s marketed. Usually, that isn’t the case. Buyers are generally in the driver’s seat when it comes to how fast or slow homes are bought, and for what price.
If you’re selling your home in this market, prepare to do two things:
Hopefully, you’ve already considered the upgrades that could help you sell your home for top dollar. And most likely, you’re already keeping your home clean, uncluttered, and ready for showings. If you’re working with a quality Realtor, your home is listed for a good price and is described in an ideal way.
If all of that is done, your next step is to wait and prepare to have positive, effective negotiations with buyers and their agents.
Here’s a quick snapshot of the real estate housing numbers for September:
Benchmark Price: $441,500
Average Sale Price: $556,372 Detached / $414,009 Attached
New Listings: 1,873 Detached / 765 Attached
Days on Market: 42 Detached / 49 Attached
Total Sales: 919 Detached / 333 Attached