CIR Real Estate Review - Summer 2019

Posted by Amanda Ku on Monday, August 12th, 2019 at 2:05pm

real estate update

It has been a few dynamic summer months as the real estate sales activity in July continued to out do recent years sales across the Province of Alberta.  Recent sales has been due to the improvements in the Calgary, Edmonton and Central Alberta markets. Economic changes in the province and the recent spring provincial election of Premier Jason Kenny. Jason Thomas Kenney PC MLA is a Canadian politician, currently serving as the 18th Premier of Alberta since 2019, and leader of the United Conservative Party in Alberta since 2017.

For the fourth consecutive month, we have seen year over year inventory levels ease which has led to greater stability of pricing with a decrease of -1.95% to an average sale price of $391,461 in Alberta overall.

The activity across the ten regions in Alberta continues to vary greatly within the five regions showing improvements in sales year over year. The Northern regions of Fort McMurray and Grand Prairie have had the greatest slowdowns of -21.43% and -12.5% year over year. This is heavily due to the weak Canadian Oil Price. In Fort McMurray, the inventory levels dropped -1.23% and in Grand Prairie, the inventory levels increased by 16.94%!   As a direct result of the inventory levels compared to dropping sales numbers the average price point in Fort McMurray has held strong and has had an increase of  0.39% to $397,731, and the opposite is the case in Grand Prairie showing a decline of -8.06% in the average price dropping to $305,543.  
The central region of the province has been relatively consistent Central Alberta (-0.75%), Lethbridge (-0.67%), and South Central Alberta (-7.14%). The inventory levels in these areas have had a greater decline than the drop in sales so we anticipate the pricing to remain stable. The exception to this is Lethbridge who has seen an increase of inventory year over year by 18%.  This could be due to the increase in the average price and sales activity that Lethbridge experienced earlier in the year which has led to more people trying to sell.  This could lead to a soft market through the Lethbridge area if a higher inventory of homes persists.
The markets that have had an increase in sales activity are Alberta west (4.13%), Calgary region (7.29%, Edmonton region (10.27%), Lloydminster (10.81%) and Medicine Hat (20%).  All of these areas except Lloydminster have had a substantial decrease in inventory which is helping bring in more balanced markets.  We anticipate these trends to continue to help balance markets and pricing.
While economic activity does still vary greatly across the Province, recent improvements in full-time employment, a continued increase in net migration into the province, diversity to the economy, stable/improving lending conditions and lower price points in the housing markets have all led to greater stability. It will be no surprise if markets are slow through the rest of the summer.
We are looking forward to a stronger Fall market if these positive indicators continue throughout the province.  Changes with the Federal government incentives for first-time homebuyers will be a positive change for the province and we expect that many other first-time homebuyers will enter the market at this time. Stay tuned to hear more about the Federal Government Incentives for First Time Home Buyers

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