In February, almost 20% of the residential listing sales in Calgary were selling for higher then the listing price. Since then, the trend has continued. In some cases, a home can be listed for just a few short hours before the multiple offers start flying in and bidding wars start. Some of the homes are receiving unconditional offers as well.
Many buyers have to go through these bidding wars in order to have a chance of getting the property they want. Most of the homes that do run into a bidding war scenario sell within a day of being listed at a higher asking price.
Part of the problem stems from the low inventory of single-family homes that are available. This, along with the low interest rate is stirring up a market frenzy. While Calgary is experiencing these bidding wars, there is also a lot of competition brewing in the communities surrounding the city. The real estate market in Okotoks, for example, is also seeing the bidding wars for desirable homes.
If you do end up entering one of these wars for home, be sure to keep your emotions in check. Even though you may really want a certain home, you still need to be realistic about the price you pay. If you can't afford to own a certain home, you aren't going to enjoy it. The property will simply become a stress point.
In all cases, your budget needs to have the final decision versus your emotions. Set out on your home shopping journey with a fixed maximum price in mind and never go above that amount. No matter how much you like the home, there will be other ones out there that will fall into your price range and you will love just as much.