(Lethbridge News Now)

By David Opinko

Lethbridge home sales up in Q1, potential “buyers market” coming soon

Apr 17, 2020 | 12:31 PM

LETHBRIDGE, AB – The COVID-19 pandemic did not have much of an impact on home sales in the first quarter of this year, but it remains to be seen what will happen going forward.

Cathy Maxwell, the CEO of the Lethbridge and District Association of Realtors (LDAR), says, for the first three months of 2020, the real estate sector was performing quite well.

In February, the number of transactions rose 20 per cent from the same time last year and March saw a nine percent increase.

This resulted in a total of 530 properties being sold in Q1, going up 9.7 per cent from 2019 when 483 listings closed.

The value of these transactions was $152-million with the average home going for $276,000.

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For the first half of April, however, Maxwell estimates that home sales declined by 50 per cent year-over-year.

Despite this, she says it is hard to say exactly what impact COVID-19 will have on the sector going forward.

“People have to move and find a home, COVID or not. I think where we will see people waiting is when they’re wanting to just upgrade or make a change, they’re going to wait a little bit until this is over, obviously, and that’s why I say those transactions will happen, they’re just a bit deferred.”

In other markets that have been impacted by this pandemic and similar situations in the past, Maxwell told LNN that the market declines in the short run, but is often followed by a sharp recovery.

Lethbridge could be in a bit of a unique situation, though.

Under normal sales volumes, she says there is about eight-to-nine months worth of inventory, meaning that if all new home construction were to stop, it would take that amount of time to sell all properties currently on the market.

“That would definitely lead towards a buyer’s market because, eight months worth of inventory, if you’re looking to buy, there’s a lot for you to look at so you have lots of choices so that means a buyer’s market.”

Maxwell was reluctant to say what impact this could have on the number of home sales or how prices could be effected.

“It doesn’t mean that listers are just giving their house away.”

Real estate has been declared an essential service so realtors are able to stay on the job and do what they can to move properties.

At the same time, they are taking steps to adapt to the ever-changing situation.

“The provincial association has stopped public open houses, of course, that makes sense. What they’re doing now is virtual open houses, you know, where it makes sense. Technology is our friend.”

Enhanced cleaning protocols are also in place to ensure that both sellers and prospective buyers are kept safe.

Maxwell concluded our interview with a message of hope, that “Lethbridge has always been very resilient, we’ve always been able to maneuver the real estate market significantly better than other centres, and I just honestly believe we’re going to do the same here.”

“We just have to stay the course, stay grounded, and stay sane and we’re going to get through this.”