Here we are with our final Real Estate Market update for the year!

Oh and what a year it has been! We always try to think about, what would be the most valuable information to have if I was looking to buy or sell, so that is what we will provide in this edition.

2021 started off at a very brisk sales level with that trend intensifying in the months to come. The amount of actual sales transactions at some points during the year where were up over 40% when measured against the prior year. Even when measured against the 5 year average, the increases were off the chart.

What caused this?

We believe that our market activity was the result of numerous factors all coming together at the same time. First off, prior to the pandemic, the average home price in Lethbridge was very, very low and was being stalled out by the massive amount of inventory of homes for sale in and around the area. We spent the better part of 4 years in this pattern that was in heavy Buyers territory for a very long time. Secondly, there would have been hundreds of families that were now back at the Buyers table following the transition of the “Stress Test” that had bumped many people from the Buyers pool and put them on the sidelines for a while, as they built further credit or saved more money for an increased down payment. Lastly and the most obvious was the fact that due to the pandemic, the lending rates were now at historical lows in an effort to protect the fragile economy and the fallout from COVID. When you put this all together you can see that the conditions were just perfect to have Southern Alberta be one of the busiest markets in Alberta.

Having said that, what is equally important is how this all looked when the smoke cleared. Well this is also newsworthy, as we DID NOT get carried away with supply and demand and participate in panic buying but rather, carefully advised clients for both re-sale home pricing and buying limits. In the overall scheme of things, we are very proud that after seeing massive gains in the number of transactions that as an organization, the Real Estate community did a phenomenal job keeping the avg sale increase to just less than double digits. On an average, home prices have shown an 8-9% increase when compared to pre-pandemic levels, which is a very nice steady gain for Sellers.

As we speak, our market conditions right now continue to favor the Seller as the number of listings available are down considerably. Even though we could use some more Sellers, the situation is far from dire as we still have several hundred listings available.

Is the market going to crash?

We don’t know what is happening in other parts of Canada, but as far as Southern Alberta goes, the answer is NO. As we said, we are confident that the fundamental reasons why we are at this point are solid. We don’t see any reason why our market would retract and in fact we could make a stronger case for prices to continue to increase.

What do things look like for 2022?

 We have a strong sense that things will continue to be very strong over the next few months and in fact may see a bit of a surge as Buyers try to get ahead of the rate increases that will be coming next year. The Bank of Canada has basically said that they will begin increasing rates beginning in April and will continue throughout 2022. This is important for Buyers and Sellers and here is why. If you are a Buyer, the answer is reasonably obvious. It will cost you more to borrow and also you will have less borrowing capacity as the stress test number increases. If you are a Seller, the same concerns will impact you. When you list your home, you will always get a stronger Selling price when the Buyers pool is larger. Once the rate increases begin, it is inevitable that we will see the Buyer pool decrease in size, as there will be less money that will be available period. So if I am a Seller, I would look to be ahead of the surge of Buyers trying to beat the clock and would call your RE/MAX agent today so you can get your home ready to be on the market in early 2022. Following this, we see the summer months and beyond, taking on a more traditional trend line as things will settle down. We think there is great opportunity for Buyers and Sellers in our market in the short term and are confident that our market will show continued strength as we move through the balance of 2022.

Dallas Harty, Owner of RE/MAX Real Estate-Lethbridge says,

“2021 has been an incredible year for Real Estate. We continue to be amazed and impressed at how resilient and strong our Southern Alberta Market is. We have some things that other markets our size don’t have, which are having a very positive impact on activity. We have World Class post-secondary institutions, as well as one of the strongest Farm/Agriculture sectors anywhere and no doubt have great climate and geography that sets us apart. 2021 has been great and we are also confident in what we will see in 2022. Lastly, I want to thank our entire team at RE/MAX as they did a phenomenal job shifting business practices and adapting, to make sure they could continue to deliver Real Estate services in a safe manner. We made the necessary shift and even added tools for our Realtors to make sure we could get our clients more from the experience. Our results this year have been nothing short of incredible with more Buyers and Sellers than ever, using RE/MAX agents to guide them through the process. Thank you Southern Alberta for your continued support and for making us the #1 Real Estate Company in Southern Alberta, we look forward to serving you in 2022! We want to wish you and your families a safe and Happy Holiday Season!”

For a no obligation consult and market evaluation, let us help you get MORE!  You can call Re/Max Real Estate Lethbridge today 327-2221 or text us at 403-635-8888 or click www.realestatelethbridge.alberta.remax.ca or www.realestatetaber.alberta.remax.ca

This monthly Real Estate Market Report analyzes Southwestern Alberta real estate, more specifically the Lethbridge area. Keep in mind that the information does not indicate the actual value of any particular property. Find out what your home may be worth in today’s market, contact one of RE/MAX Real Estate – Lethbridge’s talented agents by clicking here or for the Taber area click here.