(Canadian Press)

By David Opinko

Lethbridge home sales shot up 81% in December, city leaning towards a “seller’s market”

Jan 5, 2021 | 2:41 PM

LETHBRIDGE, AB – While much of the economy was down in 2020, the local real estate sector thrived.

Cathy Maxwell, CEO of the Lethbridge and District Association of Realtors, reports that 81 per cent more homes were sold in December 2020 at 116 compared to the same time in 2019.

Houses sold for an average of about $300,000, which is an increase of approximately 13 per cent.

These strong sales have helped to lower inventory levels from about eight-to-nine months back in the spring to about four months now.

“I would say we’re pretty balanced, but maybe leaning towards a seller’s market. When the inventory is down, you can ask a little more for your property because there’s not as much for sale.”

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Despite a drop in activity back in April when the first COVID-19 shutdowns were still fresh, Maxwell says Lethbridge finished the year off in a strong spot as she reported increases in every month since.

For 2020 as a whole, 1,666 residential properties were sold, up about nine per cent year-over-year.

The most popular price category was the $300,000-$400,000 range followed by $200,000-$300,000.

Total real estate transactions totalled $803-million. This rose from approximately $664-million in 2019.

“Lethbridge is the only larger city in the province to record this magnitude of annual sales growth and to see sales rise above long-term averages.”

While Maxwell was surprised to see the numbers rise to the extent that they did, she believes there are a few understandable reasons for why.

First and foremost, lending rates were and are still around record-low levels, promoting prospective buyers to act more quickly.

As always, she cites Lethbridge and the surrounding area as having a strong diverse economy that was better equipped to weather recessions.

With more people working primarily at home this past year, Maxwell was not sure if people looked to upgrade their houses to both be a home and a place of business.

Looking into what the future might hold for real estate is always a difficult task, especially during a chaotic year for the economy that was 2020, but she remains optimistic that the local home-buying market will be able to maintain its upwards trajectory in the first quarter of 2021.