Reason for the surge in houses for sale?

[DeniseHamilton]

I`m wondering if anyone has any clues as to why there are so many properties listed in Calgary at this time. The media reports the number of listings, and the inventory is very high but that prices are still increasing. They do not say why so many people are selling their homes. Apparently there is no great outflux of people from the city, so where are they all planning to go?

Denise Hamilton

 

[RedlineBrett]

Denise,



Lots of good dialogue in there.



There is no specific answer to your question only theories and analyst's opinions. In my opinion there are lots of listings because people made a lot of money in a very short time and now they want to trade up to improve their quality of life. Average prices continue to rise because the majority of sellers are not under pressure to let their properties go unless they get their $.



Salaries have gone up to attract new workers to fill the consistent job creation - but that also means that the salaries of people working here have also gone up. So simply put the people that have owned property for a while are now making more and also have good equity in their homes because of the latest run in prices. They can afford a bigger mortgage payment but in order to make the transition they need the cash out of their property as a down payment. So they list hoping they get their buck which will allow them to move up the property ladder. This would also be consistent with the absence of any reports of negative net migration.



But they aren't desperate to move so you don't see the average price dropping substantially.



$0.02




QUOTE (DeniseHamilton @ Apr 3 2008, 07:38 PM)
I'm wondering if anyone has any clues as to why there are so many properties listed in Calgary at this time. The media reports the number of listings, and the inventory is very high but that prices are still increasing. They do not say why so many people are selling their homes. Apparently there is no great outflux of people from the city, so where are they all planning to go?



Denise Hamilton

 

[selansa]

The average price is sometimes not that accurate due to a few high end homes being sold . THese few homes may have an affect the average to make it look like an increase. Likewise if you get a few real low prices. The figure I like to use the medium price for a trend. Some good info for whats going on in Calgary is CREB.COM .

 

[Thomas Beyer]

QUOTE (DeniseHamilton @ Apr 3 2008, 07:38 PM) I`m wondering if anyone has any clues as to why there are so many properties listed in Calgary at this time. The media reports the number of listings, and the inventory is very high but that prices are still increasing. They do not say why so many people are selling their homes. Apparently there is no great outflux of people from the city, so where are they all planning to go?

Denise Hamilton

slower Calgary in-migration, people retiring, low interest rates, spring time, they have gone up 100% over 3-4 years, commitment for other property elsewhere (in town or BC or Canmore or Edmonton ..), volatile stock market

many reasons ..