Competing Offers to Purchase

Competing Offers to Purchase

On the weekend I worked with first time buyers to present their offer for a Calgary property.  There were a total of 21 offers, representing 21 purchasers hoping to buy a home in an extreme seller's market!  The spring is traditionally busy, but there is an unusually high demand for Calgary housing.  Looking at current sales and listing activity compared to mid April 2022 and 2023, the market has continued to tighten:

• Active listings are down roughly 40% in April from 2 years ago (2022) and 20% from last year (2023).

• As you may have guessed with constrained supply, values are rising with a 9.5% jump in average sale price from this time last year.

• Housing prices in Calgary are continuing to trend upwards, with thousands of people expected to be Alberta bound again in 2024. Follow key economic indicators for Alberta:

• The average sale price to list price ratio is now over 100%, with competing offers being common place and not the exception. Accepted offers may be 5-10% over the list price in the more affordable price ranges.

• Average days on market has dropped to 21.

If you are a buyer, you must have a strategy going into a competitive offer scenario. If you are a seller, preparations to your property before listing, and having plans to manage the competing offer process are critical to optimizing outcomes. As the spring market unfolds, I took a look at current sales and listing activity compared to mid April 2022 and 2023.

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
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