Lethbridge and District Association of Realtors. (Lethbridge News Now)

By David Opinko

Lethbridge real estate returning to “balanced” market with higher sales & prices

Oct 6, 2020 | 12:43 PM

LETHBRIDGE, AB – The early onset of the COVID-19 pandemic saw home prices plummet, but the Lethbridge and District Association of Realtors says things are returning to a more normal state.

In September, CEO Cathy Maxwell reports that 306 real estate transactions were completed. This marks an increase of 61 per cent from the same time last year.

Year-to-date home sales were also up about nine per cent compared to 2019.

The average price of residential properties being listed rose 17 per cent from September last year to $314,000 in Lethbridge.

Inventory has fallen significantly in recent months.

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Earlier this year, it would have taken eight-to-nine months to sell every property listed on the market, but now, there it would only take three-to-four.

Maxwell says this means the real estate sector is overall trending a bit towards being a seller’s market, but as a whole, she describes the current situation as balanced.

“For the buyers out there, you’re going to have to be quick on the draw.”

There are several factors as to why the situation has changed.

With interest rates still being low and prices being down earlier this year, Maxwell tells LNN this has lead to many wanting to buy a home as soon as possible.

“COVID, I’m sure, played a part in it. People are re-examining the use of their homes and what they want to see in their homes because we don’t know how long this is going to play out. Maybe many people are going to be working from their homes and teaching their children at home.”

There are two demographics that seem to be buying houses at much higher rates, both nationally and locally.

This includes what Maxwell referred to as the “middle-aged millennials,” or those in the age 25-30 range who are looking to buy their first homes.

A lot of first-time buyers are also immigrants as Canada has accepted more people from other countries in recent years.

While there is no “crystal ball” to predict the future of real estate, Maxwell believes we will continue to see higher sales and prices in the next few months at least until winter hits.