What does low inventory mean for you?
The Calgary real estate market has been dealing with a declining inventory for some time now, meaning there aren’t enough home listed to keep up with buyer demand. If you are planning on buying or selling anytime soon, it’s important for you to understand what low inventory means for you.
What low inventory means for buyers
When inventory is low when you are looking to purchase, you need to make sure you are ready to move quickly as homes will be snapped up in no time. You really don’t have the luxury to “think on it” so make sure you know exactly what you want as well as what you might be willing to sacrifice on in order to secure a home.
With less selection, you might have to give up features that would be “nice to have” for those must-haves on your list – think about what you can upgrade over time. Consider expanding your search to a less competitive neighbourhood, if possible, look in a higher price range if you can and remain open to the inventory that is currently available.
Make sure your financing is in place. Until you have a pre-approval completed, there is no point in looking at homes – this could lead to major disappointment when the other offers the seller is receiving include a pre-approval letter, giving them a significant leg-up.
What low inventory means for sellers
When you are selling a home in a low inventory market, it means less competition. So, if you have a good location or desirable features and price correctly, you can most certainly expect competitive offers. Whether I’ve been representing buyers or sellers, the vast majority of my transactions this year have been competitive offer situations.
Pricing is really key as buyers are keenly aware of the higher interest rates and know what their threshold is when it comes to payments. You might not be the “best” house on the block, but if you come on the market at the right prices, you should still see competitive offers.
You’ll also want to keep one more thing in mind – where you’ll be living after you sell. Remember, if you are both a seller AND a buyer in a low inventory market, you will see both the rewards and the potential downsides to this kind of real estate climate. It’s not realistic to include a “sale of buyers home” condition to try to secure a place at the same time you are selling so chat with your mortgage broker about all of the scenarios, including having to hold two houses for a time.
Calgary’s market ebbs and flows but you can rest assured that you’ve got my 33+ years of full-time real estate experience behind you every step of the way – whether you are selling or buying, I’ve got you covered! Don’t forget to visit me on Facebook and Google for all the latest real estate information in and around Calgary.