This is a follow up to my year end review and predictions for 2018 posts.  As of mid June and with Calgary experiencing a heat wave, the spring market is officially over.  Compared to previous years it was not very strong. Mortgage rules have had a dampening effect on new home sales and it seems many builders are hitting the pause button after the construction frenzy that began last summer.  The desperate urgency to acquire land and builder mania that we ruefully observed last year has been replaced by a lot of inventory to choose from and little motivation among builder buyers.  Keep in mind I recorded a high selling price of just under 700k for a quality lot last winter (and at that time felt it was a huge mistake).

What hasn’t changed is the over valuation sellers are placing on land.  It is reaching levels in some instances where there would be a zero or negative return for the builder.  The cluelessness is quite astonishing on some of these so called deals, and I can’t really begin to comment on the ridiculous realtor descriptions promising future appreciation as if it is a certainty (on land already 100k over market).  It is equally hard to understand why a realtor would want to waste time listing a property so overvalued by the owner.  Perhaps they have no concept of development potential? 

here is the current winner of the out of touch with the market seller award for 2018.  I wouldn’t purchase this property unless it was discounted by $150k.   There is zero value here to the builder.  Note the 775,577 number, what a creative palindrome.  I don’t think a builder will overpay by some massive amount because of a creative list price.