Good news: Prices are going up. Bad news: There is a very low inventory. We at RE/MAX Alpine Realty did some number crunching and situational analysis. At first, let’s have a quick look at some year over year trend comparisons (DOM=Days On Market, PSF= price per square foot):
Year over Year averages show a 5% increase in price:
2019 519 Sales, 69 DOM, Price $713,000
2020 663 Sales, 72 DOM, Price $748,000
Comparison of 4th quarter averages show a dramatic, 12%, increase in PSF:
2019 105 Sales DOM 97 PSF $493
2020 71 Sales DOM 84 PSF $555
While this is pretty good, it does not illustrate what a severe seller’s market we are in.
Inventory is our biggest problem, let me show you the situation on the detached single-family homes, the core of real estate benchmarks.
There are currently only 18 single-family homes on the market (January 8, 2021), and only FOUR of them being under $1,000,000!
Most of the time any new reasonably priced new listings (let me weed out the bad ones) sell in a matter of days, with multiple offers. The current situation brings some changes in strategy during the COVID time. In a balanced or buyers market, an electronic search which you were getting regularly (weekly, monthly) from me followed by subsequent conversations, visitation of competing properties, applying for financing, filling the paperwork, and writing an offer will not cut it in the current environment.
We are in multiple offers situation and the only people benefiting from it are the sellers. For agents on both sides, it brings stress (which I do not mind;-). To buyers, it brings frustration, because the offers are frequently rejected or lost, mostly because of offers being submitted too late. There is a way to improve the success rate and minimize stress.
First of all, ask me for the big picture, what kind of property you can get at what price range. Pick the areas of interest, geographically, and type-wise and let me run the search for you.
At the same time talk to your mortgage specialist and prequalify for the financing. From my experience, it is to your advantage to use a local Canmore mortgage broker or local bank mortgage specialist. They know the market and they will not discount for lack of the knowledge of the unique tourist destination with zonings they might not ever hear off.
Prepare in advance the paperwork you will need for your purchase that is not related to the individual property. CRG (Consumer-Relationships-Guide), RE/MAX client acknowledgments form, FINTRAC information, and related data are a must. You will eventually also need to fill the Buyer Representation Agreement, with me, no strings attached. All this paperwork needs to be in place before you make an offer, and trust me, it takes precious time, while your competition is not waiting!
On my latest successful purchase, I conveyed the information of opportunity in one hour of listing, and because we were ready, the offer was in place within another couple of hours and our offer accepted! With clients out of town. Do not hesitate to copy the successful strategy, and contact me for more information, we will take as much time to pick the right one for you but then we have to strike fast.
Happy New Year and do not forget: “Your satisfaction is my motivation!”