Pricing appropriately in any market!

There was an interesting article in the Calgary Herald this morning that I thought I would address:

Luxury home sales hit record as market reaches new high (The Calgary Herald, June 4th, 2013)

The bottom line is that the Calgary re-sale market has hit record highs last month, surpassing our peak numbers back in 2007.  That is great news, and we have certainly seen reflection of these numbers throughout many communities in Calgary.

 
Yesterday I sent out an email to a client looking at higher-end properties that are over 3,000 square feet with reference to a variety of price reductions over the weekend. Some of these homes are absolutely stunning, as a matter of fact, I use some photos on my Interesting homes in Calgary Facebook album

Price Reduced! $1,075,000 220 Aspen Summit Heath HE SW 3 Bedrooms, Status: Active. Residential

Price Reduced! $1,075,000 5 CRESTRIDGE VW SW 3 Bedrooms, Status: Active. Residential

Price Reduced! $1,849,000 2030 6 AV NW 5 Bedrooms, Status: Active. Residential

Price Reduced! $1,450,000 4 SPRING WILLOW PL SW 4 Bedrooms, Status: Active. Residential

Price Reduced! $1,375,000 27 STRATHRIDGE GD SW 5 Bedrooms, Status: Active. Residential

Price Reduced! $1,095,000 61 SIMCREST GV SW 5 Bedrooms, Status: Active. Residential

Price Reduced! $1,175,000 78 VARSITY ESTATES CL NW 4 Bedrooms, Status: Active. Residential

Price Reduced! $1,145,000 46 CHAPALA CL SE 7 Bedrooms, Status: Active. Residential

 

I guess the point I’m making here is the fact that homes that are priced appropriately are selling very quickly, homes that are over-priced are not. Being aggressively priced means pricing appropriately in the current market. I would also question how long the current market will last, I would suggest that the current trend is not necessarily sustainable at the pace we have set this year. Typically the real estate market in most sectors in Calgary slow considerably in the summer months, which are quickly approaching.

Another interesting listing that certainly supports the theory of pricing aggressively is a home currently listed in Mount Pleasant. This home was listed in December 2008 and was listed as high as $549,999 in that period. Yes, you read that right, at the time of this writing, it has been on the market for 1,617 consecutive days, wow! As a matter of fact, this particularly property has been listed as far back as 1999 and has no “sale” history on the MLS, the current listing price is $399,999.

736 17th Avenue NW
This would probably be the best example of a “stigmatized” property that I could find. What is the first thing that comes to your mind when you read about this? Most probably something along the line of “there must be something wrong with this property”. That may not be the case with this specific home, however, the thought process certainly leans to suspicions, which will lead it to becoming stigmatized. Although this is an extreme case of this phenomenon, any home that is on the market for a prolonged period of time in its current state could very well fall into this dilemma, something that can devalue the property.

In any market, especially one as volatile as our own, it is paramount to make well educated and strategically supported decisions both in purchasing, and marketing your real estate asset. An experienced Realtor can assist you with that process with statistics and intrinsic information.

If there is anything I can do for you, please do not hesitate to ask.