Prices shoot up as Calgary’s real estate market turns red hot in 2021 | Calgary Herald
In addition, while the pandemic has certainly caused job loss and economic difficulties for some, many others have actually saved money this year. According to The Owl, a newsletter produced by ATB Financial, the average Canadian saved $5,574 in 2020, up from $479 the year before. The rise in savings is the result of the combined impact of reduced spending and income gains from government transfers.
“We were able to save a huge amount of money for a deposit in one year, just by staying home, not going out to eat and stuff like that,” said Grayham Havens, who bought his first home earlier this month in Calgary’s east Dover neighbourhood with his wife Melisa. “For us personally, it was a no-brainer to go for this place, especially getting a mortgage with an interest rate that low.”
The house the Havens finally got was the seventh one on which they had made an offer, including one where they bid $25,000 above asking and still lost out to an even higher offer.
“Every night we’d be up till 11 p.m. going back and forth with our realtor, pulling out our hair, wondering if we were going to get this one,” Grayham said. “It was ridiculous stress. We’d lose the first house and move onto the second.”
Jared Chamberlain, broker/owner of the Chamberlain Real Estate Group, describes the current market conditions as “frantic” and added that for first-time buyers, in particular, the experience can be unnerving.
“You have to look at a house within 24 hours, you have 15 minutes to look at it, make a decision if you’re going to write, and it could go into multiple offers — and you have to decide in 25 minutes,” Chamberlain said. “It becomes only the strongest who make it through, the ones who have the guts to pull the trigger.”
“We’re seeing a higher number of offers fall apart,” said eXp Realty’s Vanderveen. “I think one reason is people are being forced to make an emotional decision. They’ll view a home and then they’ll have maybe two hours to make a half-million-dollar decision. And they wake up the next morning with buyers’ remorse and cancel the deal.”
The boom in home sales is affecting related industries as well. Vanderveen said mortgage brokers in the city are working flat out to keep pace with demand, with the result being it can take buyers longer than normal to get financing in place. Spinoff impacts of record home sales are also being felt everywhere from the moving truck business to the renovations industry.
“We did some renos before we moved in and our final quote ended up being $9,000 or $10,000 more than originally stated, when all was said and done,” said Megan Angelini, who, along with husband Mauricio, purchased a condo in Mount Royal in February. “Because everyone right now is either remodelling or moving, so supplies are definitely in short demand.”
Das, the economics professor, said for the immediate future what is happening in the market now will likely continue. However, he added the current housing fever will eventually break, though it’s difficult to predict exactly when.
“It really depends on how quickly we come out of this third wave (of COVID-19). Until this pandemic settles down I think the overall market will remain uncertain. But when things improve, this market will settle down as well. I do think it’s a short-term bubble.”
For Nick Davis and his family, the ones who won a bidding war with a family photo and a heart-warming story about a fireplace, it’s now time to enjoy their efforts.
“It was a battle for sure, but we have no second thoughts,” Nick said. “We’re super pumped about the house. We were able to find something that we love.”
This content was originally published here.