By Geoff Smith (@GeoffSmithLNN on Twitter)

Home sales down while average price stable

Oct 12, 2018 | 12:37 PM

LETHBRIDGE – Home sales continue to decline in Lethbridge as new mortgage rules manifest themselves in a couple of ways, according to the CEO of the Lethbridge and District Association of Realtors.

Through the first nine months of 2018, the number of homes sold is down by around 4.8 per cent, and the dollar value is down by close to nine per cent. In fact, the total dollar value for the month of September was just over $48.9 million, a decrease of 23 per cent.

“We are seeing a little bit of a reduction, but I think it’s important to keep in mind that we’re still pretty stable as far as our average house price is concerned,” Cathy Maxwell told LethbridgeNewsNOW. “We’re only down about one per cent from last year, which is good to hear. Considering some of the neighbouring centres, Lethbridge still manages to stay pretty stable in the real estate market.”

She explained Lethbridge’s economy prevents much fluctuation, especially when compared to a market like Calgary, where she said numbers have declined to levels not seen since 2000. But Maxwell added the mortgage rules are impacting all markets.

“They originally put them in to cool the markets in Toronto and Vancouver. Unintended consequences? They’re affecting all local markets. And we know, anecdotally, that some of the agents around here are keeping track of why some deals aren’t coming together. And it is due to financing, due to those federal government rules.”

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She said another area where those rules are noticeable are in the selling prices. While the top price category is $200,000-$280,000, they’re seeing nearly as many sales in the $300,000s. She believes that’s because first-time buyers are being challenged.

The average selling price of $277,987 is a decrease of around one per cent from the same time last year. There are just over 2000 listings, slightly higher than August. Maxwell said that’s normal for fall.