In March, the average amount of days on the market for listings was sitting at only 34. When March came to an end, active listings totaled 3,233 which was a 19% decrease when compared to March of 2013. This made Calgary a seller's market, and it's expected to remain that way for some time. As well, there was only a supply of 1.3 months for home listings. In the middle of April, the average days on the market went down to 25 but the housing supply went up to 2.8 months.
As a result of these numbers, there have been multiple offers coming in for homes across the city. A lot of sellers are reluctant to put their home on the market until they can secure a new home for themselves. Since the market is so tight, it has delayed the arrival of new inventory. Around and around it goes in the Calgary real estate market right now.
One of the main problems that the market is facing is the continued net migration into Alberta and Calgary. More than 1.1 million people live in the city and approximately 30,000 immigrants arrive each year. It's hard for the inventory to meet the constant demand.
While home sales are being affected, the rental market too is having a hard time keeping up with the demand. The vacancy rate still remains at about 1% for rentals. More and more people are looking at the possibility of purchasing rather than renting since the market is so tight. This increases the demand for resale housing even more.
The interest rates also remain at a low level, which is an incentive for people to buy a new home rather than rent. It's expected that it will take some time for the market to become balanced again and that it will remain as a seller's market for some time. If you're looking at buying a new property soon, be prepared with a pre-qualified mortgage and be ready to make a fast offer if you see something that you like.