There has been a tremendous amount of recent debate on how multiple offer situations should be handled as we experience an increase in overall real estate activity. Numerous listings are having more than one offer for the sellers to consider soon after they are listed, the debate about what method would be most beneficial for all parties including the market itself thus picks up steam.

The most common method currently used with multiple offers is called the “blind offer” method. The process consists of the listing realtor setting a time for which all offers from potential buyers must be submitted for review. Potential buyers must write their best offer, including the highest price they are willing to pay, putting forward a large deposit which can be seen as a sign of strength, removing conditions they might have otherwise included such as financing or home inspection and setting a possession date that is as amicable as possible for the Sellers. All of these parameters are set without knowing any details of the other competing bids, thus is it called the “blind offer” method and gives the buyers one shot to structure their best offer to try and be the winning bid.

The concern lies in the lack of transparency, without knowing what the competition is offering some buyers become overly aggressive and make offers that they would not normally ever consider putting forward. They offer well over the list price or leave out a condition that possibly could leave them exposed to future issues.

Overall the blind offer system is most beneficial to the sellers, it ensures they get as much as possible for their property however it can be detrimental to the buyers and the overall housing market. Aside from a buyer overextending themselves beyond their means this method can all drive up the values of real estate unnecessarily reaching a point where things become unsustainable eventually leading to a correction.

An alternative method would be to have an auction, a more open and transparent method where buyers who were bidding on a property would be informed of all the other offer’s terms and conditions. This would allow the buyers to still offer more than their competitors, they would be able to continue to increase their offers as other buyers increased their bids to a point where only one offer would be left standing. In the end, the buyer winning the bid would know they paid the correct amount to successfully win the property rather than blindly throwing a number into the ring. The value of the offer would likely be over the asking price but the sale value would be set using a more informed method helping keep the overall market in a healthy state.

The seller would still be getting fair market value and the highest possible offer but some argue the seller would still end up selling the property for more using the blind offer method instead, thus the debate continues.

The Viani Real Estate Group has once again achieved another milestone, for the month of May 2021 we were recognized as not only the second most productive team at RE/MAX Real Estate Central but the #83 most productive team by RE/MAX of Western Canada. RE/MAX of Western Canada includes all RE/MAX realtors licenced from British Columbia across to and including Manitoba, it is truly an honour to say we are recognized not only amongst our peers in the City of Calgary but a large portion of Canada.

The recognition is both appreciated and important, each member of the Viani Real Estate Group works hard day in and day out to ensure our clients receive exemplary service, we pride ourselves on being competent, experienced full-time professional REALTORS®.

The vast majority of our business comes from our repeat and referred clients, we hope us being recognized as a top producing team speaks volumes for the service and guidance we give to each and every one of our clients.

We love what we do and we want to help you with your next real estate transaction, be it residential, commercial, business brokerage or investment.

We look forward to working with you in the future.

The Viani Real Estate Group is honoured to have recently received the RE/MAX Chairmans Award as a top producing team in 2020 at the recent International conference (held virtually).

We would like to take a moment to thank each and every one of our clients, family members and friends, it is because of your continued support that we can achieve our success.

We look forward to hearing from you and assisting you with any and all of your real estate needs.

Thank you!

City of Calgary, April 1, 2021 –

The initial impact of COVID-19 on the housing market began last March.

One year later, it is not a surprise that March sales in 2021 were higher than in 2020. However, at 2,903 sales, this was the highest March total since 2007. 

“Low lending rates and improved savings have supported sales activity,” said CREB® chief economist Ann-Marie Lurie.

“However, sales have been somewhat restricted by the lack of listings. This month there was a jump in new listings, contributing to the strong monthly sales.” 

Inventory levels pushed above 5,400 units, but citywide months of supply fell below two months. This reflects the lowest months of supply for March since 2014 and these tight conditions have contributed to price gains.

In March, the benchmark price trended up over last month to $441,900, over six per cent higher than last year’s levels. The price gains have moved the market closer to recovery, but prices remain over five per cent lower than 2014 highs.

“Improving prices will likely support further gains in new listings, as sellers try to capitalize on the recent shift toward rising prices,” said Lurie.

“Eventually, this will help support more balanced conditions, but it could take time before we see this shift in the market.”

HOUSING MARKET FACTS

Detached

Like last month, detached sales activity improved across most price ranges and all districts in the city. While new listings did improve, inventory levels remained relatively low at 2,409 units, causing the months of supply to drop to just over one month.

The citywide detached benchmark price rose by nearly eight per cent compared to last year. Year-over-year gains ranged from a low of nearly three per cent in the City Centre to a high of nearly 11 per cent in the North and South East districts.

Prices in most districts remain below previous monthly highs, but recent gains in both the North and South East have supported full price recovery in those areas.

Product priced under $400,000 recorded the lowest sales growth, as limited inventory weighed on that segment of the market. However, rising sales and easing inventory resulted in tighter market conditions across all price ranges. This is likely supporting price gains, not only in the mid and lower price ranges, but also the upper price ranges in the market.

Semi-Detached

Steady gains in sales caused first quarter sales totals to reach nearly record highs for this property type. Improving new listings were not enough to offset the sales and the months of supply fell below two months for the first time since 2014. Low supply levels relative to sales contributed to further gains in prices, which, as of March, were nearly six per cent higher than last year’s levels.

Benchmark prices trended up across all districts and prices remained higher than last year’s levels across most districts. The largest year-over-year price gains occurred in the North district, with an increase of nearly 10 per cent.

Row

Echoing the results of other property types, sales activity for row properties has risen far above long-term averages. However, it is the first time since 2014 that the months of supply has fallen below three months. The row-property market has taken longer to see tighter conditions, but the recent tightening is starting to have a more significant impact on price.

As of March, row benchmark prices rose to $288,800, nearly three per cent higher than last year. However, activity was not consistent across all districts.  The largest price gains occurred in the City Centre and West districts.  Despite recent gains, prices remain well below previous highs.

Apartment Condominium

For the third month in a row, sales activity was stronger than the previous year. New listings also rose and is causing some inventory gains. Despite the inventory gains, sales have been far better than levels seen over the past six years and the months of supply did trend down to the lowest March levels since 2014.

Tightening conditions did support some year-over-year price gains in this segment. After experiencing falling prices for the better part of five years, this change is a welcome shift for most sellers. However, prices remain nearly 17 per cent below the 2014 highs.

REGIONAL MARKET FACTS

Airdrie

Strong sales activity continued into March. New listings also rose, but it was not enough to cause any significant shift in inventory and the months of supply fell to just over one month.

The low levels of supply relative to demand have been persistent in this market since the second half of 2020, causing steady gains in prices. As of March, the benchmark price was $355,800, an increase from last month and nearly eight per cent higher than last year’s levels.

Cochrane

Cochrane reached a record high level of sales and new listings in March. The increase in new listings likely contributed to some of the sales gains and was high enough to support some monthly gains in inventory. However, inventories remained low relative to what we traditionally see at this time of year and the months of supply dropped to levels not seen since 2006.

Persistent sellers’ market conditions supported further price gains in March, as the benchmark price rose to $423,800, nearly five per cent higher than last year’s levels.

Okotoks

New listings in this market continue to trend up from the lower levels recorded at the end of last year. However, the gains this month were accompanied by strong sales growth, pushing the sales-to-new-listings ratio back over 90 per cent.

Inventories remain exceptionally low for March and the months of supply eased to just over one month. These exceptionally tight conditions have supported further price gains this month. The benchmark price trended up over last month and currently sits over seven per cent higher than March 2020 figures.

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