It is that time of year again, folks! The new month is here, bringing a number of changes: the end to Target, the beginning of chocolate roses and adorable cards, the start of the last round of episodes for television shows. What else is new and exciting? The real estate market!
You won’t get details on February until next month. However, by understanding what happened last month, you will be able to make intellectual predictions about what the market could look like this month. That is why each month we post the previous month’s stats. You will be able to start identifying trends and recognizing changes. Without further ado, here are the statistics from January:
Without dancing around the subject, the news is that January was not an especially good month for real estate. Why? Because of the massive drop in oil. This was a shock to the system for earlier predictions who expected the market to continue moving in a positive direction. CREB® chief economist Ann-Marie Lurie says, “This change is partly connected to continued low energy prices, which impact consumer confidence. A lack of recovery in oil has many concerned about their employment status and this concern is reflected through the weaker sales activity in Calgary’s January resale figures.” Alberta is built on oil, so when it goes, we go.
Another result of this decline is that there was an increase in inventory. Lots of people are putting their homes are the market, and this is seen in every sector. There is good news though! Despite a rise in inventory, prices have remained relatively stable. “It’s important for sellers to set appropriate expectations in this market,” said CREB® president Corinne Lyall. “They need to consider their property type, the competition they may be facing in their community, their reasons for selling and, of course, when they ultimately need their property to be sold.”
The most important thing in an unstable market is that you are making wise decisions and not overestimating anything. Remember that conditions can change quickly, as we have seen this last month. If you are considering buying or selling a home anytime soon, keep a very keen eye out about what is going on.
Remember that your realtor is your greatest asset! Team Ken Richer has been working in the field for a long time, and can give you very sound advice about what to do in these conditions. We hope you had a fantastic January, and here’s to an even better month ahead!
Your Real Estate Professional,