Real Estate markets across the country are going through a transitional period. Many big metro centres are experiencing significant reductions in the number of transactions year over year and also seeing the average home price slide. This isn’t just another metro city; THIS IS SOUTHERN ALBERTA! Although the sales transactions are down, the market is fairing quite well, and continues to show a nice steady average home sale price increase.  Below are some of the metrics for both Southern Alberta and just the City of Lethbridge.

Some of the highlights from the metrics that are tracked for both the complete LDAR area and the city of Lethbridge. The LDAR area would include data from all of Southern Alberta.

Southern Alberta

The number of transactions were down substantially showing a decrease of 25% versus one year ago. Having said that, the average home price continues to climb. The average home price rose another 9% when compared to this time last year. The number of listings available remains the same versus last year, however there was a small decrease in new listings that came on in the month of October which kept the market reasonably tight. Based on Southern Alberta’s numbers, it is showing that the market is fairly balanced and may just be slightly trending into a seller’s market.

City of Lethbridge

The number of transactions was down sharply in the city when compared to this time last year. There was a 32% decrease in sales versus October 2021. However, there is a nice healthy 8% increase in the average home price which signals that the market is still favoring the Seller. The overall number of listings is stable versus last year, however the number of new listings that came on during October was down 20% which will continue to put upward pressure on resale average home price. The market in the city is in much better shape than it was at the beginning of the year, however it is still in Sellers’ market territory.

Where is our market in Southern Alberta headed?

Every set of numbers tells a story. These set of numbers tells us that it is still a very good time for Sellers. There has not been a single month where the market didn’t have some increase in the average home pricing. Based on the number of New Listings coming on at the moment, there is the potential that sellers may be pulling back because of the unknowns, which in turn, is putting further pressure on resale inventory.

New construction permits are at their lowest point in a decade, which limits the availability of new homes and will further impact the resale market in the months ahead. The key driver for this slowdown was the heavy and quick increase in mortgage rates. Its understandable that the Band of Canada hit the button hard and often to get inflation under control, but the consensus is that this strategy will be short term one. There is no doubt that the higher rates will be felt for a few months, however it’s believed that there will be a good chance that the rates will ease up in 2023 as economy starts to stabilize. While the rates feel high when compared to the historical lows of the past 2 years, in reality, they are NOT when compared to the over historical trends and history.

This is a great time for sellers as inventory across some price points is extremely low, and although it may take some patience, the stats are continuing to show some great results.

Re/Max Real Estate Lethbridge Owner 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.

 Although markets are changing we continue to see strength in Calgary and across Southern Alberta. 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. 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. Make sure you are getting the facts about what is happening in your neighborhood. 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, were Number One 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.