Calgary’s Market Shift – The End of Overbidding Era

The Calgary real estate landscape has undergone a notable transformation this summer, and the implications for both buyers and sellers are significant. According to recent analysis from the Calgary Herald, the frenzy of overbidding that characterized our market for much of the past few years has largely evaporated.

A Market Finding Its Balance

Joel Schlesinger, writing for the Calgary Herald, reports on compelling new data from online real estate platform Wahi that examined Calgary market activity from July through September. The findings reveal a dramatic shift: median bids in all but one community fell below list price during this period.

The sole exception? Chinook Park, where the median bid came in at exactly $1 over list. However, as Schlesinger notes, only five transactions occurred in that community over the three-month period, hardly a robust sample size to indicate any real trend.

The New Reality Across Calgary Neighborhoods

What’s particularly interesting is how this shift has manifested across different price points and neighborhoods. A handful of communities, West Hillhurst, Maple Ridge, and Garrison Woods, saw essentially flat bidding, with offers landing within $1,000 of list price. But most neighborhoods experienced substantial gaps between asking and selling prices.

The luxury market saw some of the most significant adjustments. In Rosedale, where the median price hit $1.655 million, homes sold for a median of $90,000 below list. Elbow Park, with its median price around $1.75 million, experienced the second-largest median underbid at $55,000.

But here’s what caught my attention: this isn’t just a luxury market phenomenon. Rideau Park, with a much more accessible median price of $395,000, recorded the third-highest median underbid in Calgary at $50,000. This tells us something important. The market recalibration is happening across all price segments.

What This Means for You

Wahi’s economist Ryan McLaughlin offers an insightful interpretation of this data, noting that “Calgary is moving toward a better balance between buyers and sellers.” He observes that sellers now face increased competition and need to price more strategically to generate buyer interest.

For my buyer clients, this represents a welcome change. You now have genuine negotiating power, particularly in higher-priced neighborhoods. The days of throwing caution to the wind with aggressive over-asking offers have passed, at least for now.

For sellers, this doesn’t signal doom and gloom. It signals the need for strategy. Proper pricing from the outset is more critical than ever. The market will find the right price point, but overpricing in hopes of capturing desperate buyers is no longer a viable strategy.

Looking Ahead

This market evolution actually represents a return to healthier real estate fundamentals. When buyers have room to negotiate and sellers must price competitively, we create conditions for sustainable, rational transactions rather than emotion-driven bidding wars.

Whether you’re looking to buy or sell in Calgary’s luxury market or considering a move elsewhere in the city, understanding these dynamics is essential to making informed decisions. The market hasn’t collapsed by any means.

If you’re considering a move in Calgary’s current market, I’d be happy to discuss how these trends specifically impact your situation and goals.

Source: “Overbidding on properties falls off over summer” by Joel Schlesinger, Calgary Herald