60% of home sales for the month of March were under $450,000 so ignore the ‘average’ selling price of $474,000!!! Just over 40% of the homes sold in March were under $400,000 - they key price mark.
For all the homes I have currently listed for sale, the only properties that are seeing any kind of activity are priced under $400,000. Buyers seem to be very reluctant to move past the $400,000 mark right now. In a small community like Braeside in the SW, currently there are 17 single family homes on the market with the large majority priced over this median of $400,000 - in the past 30 days, not one home sold over that price range. In total, only 5 homes have sold in that 30 day range - averaging closer to the $360,000 mark. Braeside is not alone!
What does this mean for home sellers?
My suggestion for home sellers is to really take a close look at what buyers are doing right now. If your home is priced above the $400,000 range, and all your competition is as well you need to seriously consider a strong price reduction to get your home sold.
There are hundreds of buyers in our market looking for the right home, you need to push yourself in front of your competition by a long shot. 40% of home buyers are shopping below $400,000. Only 19% of home buyers above that up to $450,000 - then only 13% of buyers are shopping upwards to $500,000.
What do these percentages translate to?
Well, out of 6000 single family homes (not including condos or surrounding communities), only 184 homes sold between $450,000 and $500,000 in March - out of 1418. Compared to almost 331 the same time last year with significantly less listings.
When you are considering the entire city with an average price range over $450,000 these numbers of sales tells me that home seller’s have to look at where the buyer’s are. If home seller’s are needing to sell, they must bring down their home prices to the range of majority. Don’t get me wrong, I am not saying that all homes should be priced under $400,000 - I am saying that if your home has been on the market for 40+ days and you have 5 or more homes to compete with, you must look at pricing your home a good 5% below your strongest competition.
Unfortunately, Calgary home seller’s need to come to grips with the slowing market. It is happening in Canada, the US, and all over Europe. To keep the mind set that our market is still strong and will be able to maintain what we already have is simply not the case. Here is an interesting article in the Nytimes