Mid Year Market Report-Central Alberta Compared to The Rest of Alberta
Alberta. One of the westernmost provinces in O Canada; True North, Strong, and Free. A beautiful province with a tremendous amount of differing landscapes & full of hard working folk. We are OIL country. We are CATTLE country. We are CROP country. We produce, grow, make, create, and ship precious resources to other provinces and beyond, in neat little packages.
Parents making great sacrifices; travelling to remote destinations for weeks on end, in the dead of Winter. Entrepreneurs taking a leap of faith with their life savings to contribute to the local economy. Those working two jobs. Those working three jobs. Showing up to work everyday & contributing to society, because that is what Albertans do.
2014 is when things all changed; we all felt a dark cloud looming in the distance; the air felt heavy. People were on edge. Yes, Alberta has experienced a recession before; oil tends to be a "boom and bust" sector, but this time, it felt different. It was like dominoes: political shifts, oil crash, 100,000 (and counting) jobs lost, mortgage changes, & new tax implements. Where am I going with this you might be wondering? I didn't want to just write up a bunch of stats and leave you with that. To be honest, the stats are a bit grim as a seller in this market, or even someone who bought right before the decline. As a buyer, you should be jumping for joy - because the bottom is here. In fact, if you haven't bought yet, you should consider doing so after reading this blog (and calling me), because as they say, it is only UP from here. If you are selling and buying, any equity potentially lost in the sale, can be regained in the purchase. This is especially true if you are buying up in value. Real estate is similar to the stock market, although, not as volatile, it does ride the economic waves.
For all these tough times you, your friends, your family, your neighbour, your mom and dad may be experiencing, it feels as though Alberta might finally be at a place to rebuild & get back to "normal" life. Maybe not what it once was, but certainly one with a more positive outlook. Another update in the right direction is that the stress test percentage was lowered from 5.39% to 5.19%. You may be thinking that is "peanuts", but it can have an impact of thousands towards the buyer's purchasing power. So while economic activity does still vary greatly across the Province, recent improvements in full time employment, a continued increase in net migration, stable/improving lending conditions and lower price points in the housing markets have all led to greater stability. With that, I will present the "big boy" stats for January-July 2019. Here we go!
YEAR TO DATE
Number of Sales:
Central Alberta: 2,173
-8.54% from 2018
Province Wide: 32,756
-1.74% from 2018
This has been the lowest number of sales Alberta has witnessed over the last 10 years. The highest number of sales happened in 2014.
Average Sale's Price:
Central Alberta: $295,412
-0.20% from 2018
Province Wide: $391,461
-1.95% from 2018
The majority of sales in Central Alberta happened between $250K-$300K. Overall, average price has remained fairly steady, compared to last year.
Months of Inventory:
Central Alberta: 12.21
+4.45% from 2018
Months of inventory is also referred to as the absorption rate. This means how long will it take everything to sell, if no new listings hit the market today. In this case, 12.21 months (a year). This signifies a heavy buyer's market. Contact me for your specific town/city's absorption rate, as this is a blanket average. Red Deer is currently sitting at 5 months of inventory.
Out of the 10 regions in Alberta, 50% have seen improvements to sales (compared to the first half of 2018).
|Alberta West: +4.13%||Central Alberta: -0.75%|
|Calgary: +7.29%||South Central Alberta: -7.14%|
|Edmonton: +10.27%||Lethbridge: -0.67%|
|Lloydminster: +10.81%||Fort McMurray: -21.43%|
|Medicine Hat: +20%||Grand Prairie: -12.50%|
For any questions or to receive an emailed copy of where I obtained these values, please email me at firstname.lastname@example.org
Becoming a Realtor was the best decision I have ever made, because "going to work" doesn't feel like going to work. My passion is to help you turn your Real Estate dreams into a reality. Whether you a....