Best & Least Performing Real Estate in Communities of Calgary

REALTORS® are often asked what is the best community in Calgary for someone to invest in real estate?

The answer could be quite subjective depending on everyone’s perspective and level of judgement based on personal preferences. However, below you’ll find factual data based on CREB’s previous month’s statistical report to see which were the best performing communities of Calgary and the not so great communities.

I have chosen to investigate four key indicators which usually influences the performance of any real estate market and prices in general. Time it takes to sell

• Percentage of homes sold vs. listed (odds of selling)
• Sale price vs. asking price
• Months of inventory

I believe that by monitoring these figures on a regular basis is not only important to do so on a city-wide basis but by narrowing it down to a particular community could prove to have a higher impact on the return of your investment.

Certain communities compared others are more prone to increase in value. Therefore it could have an impact on your bottom line when it comes to making the best possible decision to increase the odds of maximizing your return on your investment.

On the other side, there are some communities which may be not so beneficial to invest in as it could prove to be more of a challenge to sell when compared to other communities within Calgary. 

Time it Takes to Sell

The Days on Market figure represents the number of days it took to receive a firm sale for a particular property. In the previous month for the City of Calgary, the DOM or Days on the Market figure was 35 days on average.

Percentage of Homes Sold vs. Listings (Odds of Selling)

We can receive a fairly accurate picture of the “odds of selling” by comparing the number of homes that have actually sold in the last month to the number of listings for the same period of time. I find it important to mention that the data used should also include the number of sold listings and the active listings combined together to represent the complete inventory for the entire month. In the month of August for the City of Calgary on average, the total number of homes that sold was 33.03 percent of the entire inventory. 

Sale Price vs. Asking Price Ratio

The actual Sale Price vs. Asking Price Ratio represents what percentage of the asking price did a seller receive. In a competitive market seller often receive bids very close to their asking price or even beyond their expectations like in August when 16.63 percent of all sales were equal or higher than the original asking price. On average, in the previous month sellers did receive 98.06 percent of what they were asking.

Months of Inventory Available

The pace of the market can be determined quite easily from looking at the Months of Inventory at hand. Otherwise, if the homes are being sold at the same rate as they were in the previous month then we can a figure out how long it would take to sell all the homes that are currently listed if no new listings would come on the market.

This number shows us how active the market is. If the months of supply is below two months then it is commonly agreed by industry experts that it indicates a seller’s market. On the other hand, if the months of supply is higher than 3.5 months then buyers are in a more advantageous position. For the month of August, the supply of inventory for the city of Calgary was 2.03 months.

*Note: Communities with fewer than 3 sales in a month have been eliminated from the list to improve the level of accuracy of the results. All figures are referenced to the month displayed in the page title.