Calgary hot housing market bids goodbye to bidding wars amid cool down

Another home sold in Calgary's hot housing market. Global Calgary

Calgary’s hot housing market is following the lead of many others across the country and cooling off.

Local realtor Curtis Prokopchuk with EXP Realty couldn’t catch his breath for months. Now there’s been a definite shift in the market, he told Global News.

“What we’re seeing is a little bit of a slowdown,” he said. “I believe it’s becoming a bit more balanced.”

Jonathan Ashkin with Real Estate Partners at Real Broker has also seen the signs of that more balanced market. He said it’s a good thing for those looking to purchase a home in the city.

“It was a rough spot for buyers to be in at the start of the year,” he added. “You’re competing with 10 other offers on every property and you have to go in unconditional if you want a chance.

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“We’re still seeing multiple offers in certain scenarios but instead you’re competing against four or five offers whereas at the start of the year I had some deals where I was competing against 15 offers.”

Read more: Calgary home sales ease as some markets see pullback: board

Home sales still up but listing prices decreasing

Home sales and prices are decreasing across the country thanks in large part to rising interest rates, but in Calgary, home sales are still strong.

According to the Calgary Real Estate Board (CREB), overall sales so far this month are up more than seven per cent compared to July 2021. However, new listings are down two-and-a-half per cent and active listings are down 22 per cent.

Benchmark prices haven’t been released for the month, but both Prokopchuk and Ashkin said asking prices are dropping.

“I’ve seen already a significant amount of price decreases,” Prokopchuk said.

He added that many sellers were basing the listing price on what other homes in the neighbourhood sold for earlier in the year. But he said most homes aren’t selling for way above asking anymore.

“Without the crazy demand, people are having a little bit of trouble getting that actual price.

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“But it’s not all doom and gloom like we’re seeing in some other markets around Canada,” Ashkin pointed out. “It’s just taking a little bit longer (to sell). So instead of every home selling first weekend, we’re sort of around a 30 to 35 day range for most detached homes.”

Read more: Sizzling hot Calgary housing market to cool off slightly later in 2022

Again, both realtors said the pullback is good news for buyers who have been forced to take major risks by making some quick decisions.

“The fact is that now you have that opportunity to have that second thought, to do an inspection,” Ashkin added. “It’s just a fantastic thing for buyers right now.”

And while there is some concern the slowdown will grow, both realtors told Global News that properties are still selling — if they’re listed for the right price — adding, this could actually help the market.

“I have buyers that have been waiting for three months,” Prokopchuk said. “I think now they’re going to get the opportunity (with the market balancing a bit) to buy the home that they want.”

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