There’s only one way to describe Edmonton’s real estate market: it’s fast and furious.
It truly is a sellers market - so if you are thinking of waiting to list your home in the spring - don’t wait! Spring is already here. There is currently incredibly high demand for homes which is further complicated by extremely low inventory in the Edmonton market.
“There truly just aren’t enough homes on the market to satisfy the number of buyers we have looking, at all price points,” says Jason Holland of Holland and Associates.
“It means we have maybe 24-48 hours from the time a house hits the market, to show it and get an offer in. We’re seeing homes go above asking price because of multiple offers. We’ve even seen up to 6 or 7 multiple offers on a property.”
2021 was a hot real estate year, with growth in almost every sector of the market. For 2022, there appears to be no slow down of that trend, especially with low interest rates expected to jump this month, buyers are scrambling to get into the market and purchase whatever they can get their hands on.
“We continue to see incredible momentum emerging out of the Greater Edmonton Area real estate market as we head into the warmer months,” says the REALTORS® Association of Edmonton. “We saw huge increases in our month-over-month activity for residential listings and sales for the month of February.”
The Hollands say more than half the homes for sale right now are going to multiple offer situations. What does multiple offers mean? It means, a home has garnered so much interest that more than one buyer is interested and makes an offer on a home. How this works is – a seller sets a time for the presentation of offers. All offers are presented within that time. Then the seller can choose to accept one, can counter back with one of the offers, or can ask to have some or all the offers resubmitted. This is a closed process. You or your realtor will not know what the other offers are.
While it is easy to get caught up in the frenzy - Jason Holland says, “It is important our clients don’t get into a buying war of trying to out-bid. That’s where they get into trouble and over pay for a property.”
Staying calm in this market comes down to planning and preparing and understanding what the value of a home is before making an offer.
“If we are shopping in a certain area with a buyer, we do alot of education prior, so we’ll be talking about what things are selling for and showing them what homes in that area have traditionally sold for, so our clients will know in advance where that property should be priced, before making an offer. That way in a fast moving market, people can come in and make a decision quickly and feel comfortable that they are not overpaying,” says Holland.
Buyers still need to pay an affordable price, based on comparable sales. Home owners need to remember they will have to sell this home one day, and the market might not be as hot when they do. At the end of the day – yes it is a home you might want to live in - but it's the largest investment you’ll make. Real estate is about making smart investment decisions and being prepared and educated in a fast moving market is the best way to do that.
The Hollands do have some advice on how to make your offer more appealing in a fast moving sellers market:
Prepare in advance
Be pre-approved for your mortgage
Your mortgage broker should have all your documentation and paperwork ready to make an offer
Inspection already booked within one or two days
Higher deposit can improve an offer
Flexible on possession day;
Offer price will make a difference …. but know your limits.
Be aware on area’s comparable recent sales
Holland and Associates has numerous buyers looking for homes in all areas of the city and at all price points. If you are interested in selling your home - reach out today!
Posted by Kerri-lyn Holland on