The last few months have seen our market experience significant change. As was predicted, sales would slow up and the market would definitely soften. The increase of available inventory over the months as well as the increase in interest rates have definitely taken the heat out of the extreme seller’s market that we had earlier this year. Below we have outlined some of the metrics for both Southern Alberta and also just the City of Lethbridge

Here are some highlights from some of the metrics that we track for both the complete LDAR area and also just the city of Lethbridge. The LDAR area would include data from all of Southern Alberta.

LDAR

So as expected, the number of transactions has softened and is down 10% when compared to September of 2021.

Average home price showed a nice healthy 4% increase.

The number of available listings has stayed steady versus last year and this is also the case with new listings.

Overall our market is very close to balance, however is still favoring the Seller at this time.

City of Lethbridge

Again, the number of transactions was down significantly with September being off 17% in transactions in the city.

Average home price showed a 6.5% increase across all types

The number of listings available is actually slightly higher than at the same time last year and the number of new listings was about the same as last year.

Overall, in the city we have stayed in about the same type of conditions as last month, however it has moved slightly further into sellers territory.

The big adjustment

Overall, we are actually seeing some pretty good indicators and our market has performed very well. Although the number of transactions has decreased as predicted, our average home price has continued to climb. The fundamentals that are creating this is the relationship between the number of available listings and total sales. The biggest issue that we can see, is the challenge of adjusting to these “normalized” conditions. From Buyers to Sellers to Realtors, the adjustment has been swift. A few short months ago we were seeing absorption rates of as high as 80% and today we are back down to around 20% in Southern Alberta and 23% in the city.

The days of the lower 2% mortgages are gone for the time being and so is the idea of our average home price crashing. We are not Toronto and we are not Vancouver.

We may at some point in the months ahead see some softening, however we believe it will be very gentle. In the short term, we need more listings or we could in fact see the average home price grow even further.

The high cost and low supply of new home construction has a significant effect on our market and will likely put more pressure on our resale market. Overall, this is still a good time for Buyers and is a really good time for Sellers.

Owners Message

Dallas Harty says, “We are steadfast in our message that Lethbridge and Surrounding area remains one of the most stable Real Estate markets in the country and is a good place to invest and or own a home. Although mortgage rates have gone up, the rates are still affordable when compared with historical data.

We have moved away from the extreme Sellers Conditions we were in earlier in the year, however the market is still favoring the Seller.  We are in a time where it is really important to work with a knowledgeable, experienced Brokerage/Agent to get you the most from your experience. A mistake in listing price in these types of conditions, can cause Sellers to leave money on the table. It is more important than ever that you are using a Full Time, experienced agent that understands the market conditions in real time, to make sure you are getting the most for your home. We are proud of our track record and continue to deliver results to our clients. We want to congratulate all of our RE/MAX agents and support staff as we once again, we are number 1 in the market for Buyers and Sellers in Southern Alberta. We are proud to have served the area for the past 42 years and would look forward to the opportunity to meet with you and your family. Market evaluations and consultations are free and there is no obligation. Reach out today and let us help you get more.”

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.