Mid-Month Market Update October 15, 2020

Central Alberta sales in the first two weeks of October were down 17% compared to the first two weeks in September this year, but are up 28% compared to the first two weeks of October 2019.  The number of active listings is down almost 25% compared to last year at this time.  Supply and demand have moved closer to balance which is what supports a healthy market. There have been some positives for our economy in the news lately – the Line 3 pipeline to the U.S. won another court challenge, the Trans Mountain Pipeline is quietly progressing with more construction underway, and the Alberta Government recently announced a $45 million clean energy and organic fertilizer facility will be constructed in Lacombe.  These aren’t earth shattering developments, but they are the tiny glimmers of light we are looking for as we move forward. 

Clearwater County Market Update October 1, 2020

Central Albertans have demonstrated their enthusiasm for home ownership over the last four months. No one really knew what to expect as we came out of the Covid 19 lockdown, but our homebuyers knew what they wanted. Sales in central Alberta were strong again in September, up 22.5% compared to September 2019. And year to date sales to the end of September are off compared to the same time last year by just 3%. The Red Deer and Penhold markets have moved into “balance”, while the other central Alberta markets have moved closer to balance. Spectacular results considering what we were hearing in March and April.

The majority of sales activity continues to happen in the lower price ranges, but we are starting to see interest pick up in the higher ranges which is normal. Every recovery starts at the low end and gradually moves up. What is fueling the spike in sales? In our opinion, a number of things. Five year mortgage rates under 2% (the lowest in history) combined with the lowest prices in six years, maybe even since 2006 in some cases. Also, the federal government has pumped $350 Billion into the economy over the last few months and that money has to be going somewhere. Finally, it appears that many people are tired of Covid, tired of the lockdowns and restrictions and just want to get on with living and”where there is a will, there’s a way.”

Rocky Mountain House Market Update October 1, 2020

Central Albertans have demonstrated their enthusiasm for home ownership over the last four months. No one really knew what to expect as we came out of the Covid 19 lockdown, but our homebuyers knew what they wanted. Sales in central Alberta were strong again in September, up 22.5% compared to September 2019. And year to date sales to the end of September are off compared to the same time last year by just 3%. The Red Deer and Penhold markets have moved into “balance”, while the other central Alberta markets have moved closer to balance. Spectacular results considering what we were hearing in March and April.

The majority of sales activity continues to happen in the lower price ranges, but we are starting to see interest pick up in the higher ranges which is normal. Every recovery starts at the low end and gradually moves up. What is fueling the spike in sales? In our opinion, a number of things. Five year mortgage rates under 2% (the lowest in history) combined with the lowest prices in six years, maybe even since 2006 in some cases. Also, the federal government has pumped $350 Billion into the economy over the last few months and that money has to be going somewhere. Finally, it appears that many people are tired of Covid, tired of the lockdowns and restrictions and just want to get on with living and”where there is a will, there’s a way.”

Mid-Month Market Update September 15, 2020

Residential sales in central Alberta were up 4.4%  compared to the same period in August while the number of active listings dropped by 4%.  It’s difficult to explain exactly why the market continues to do relatively well, but there are three factors we believe are having an impact:

  • Mortgage Interest rates below 2% are very attractive to first time and move up buyers
  • The federal government has pumped $300+ billion into the economy – people are spending less on entertainment and travel etc. which means they have money to buy or upgrade their homes.
  • People are tired of Covid and want to get on with their lives and their plans

Whatever the reason, a strong real estate market is good for the economy.  Every transaction provides work for lawyers, mortgage brokers, realtors, movers, property inspectors, banks, cleaners, home stagers, handymen etc.

In spite of a recovering market, prices are the lowest they’ve been for years.  Those low prices combined with very low interest rates means there is still tremendous value for homebuyers.  This is likely the opportunity of a lifetime.

Clearwater County Market Update September 1, 2020

The housing market in central Alberta continued to rebound in August with sales up 21.6% compared to August 2019. Year to date sales have not quite caught up to last year’s, but are only down 6.4%, which is remarkable considering what was happening in April and May. In the meantime, the number of active listings in almost central Alberta market is down. The result is a return to balance or close to balance in most of those markets which will keep prices stable.

It’s important to understand that there are markets inside our markets. The vast majority of the activity in central Alberta in recent months has been focused in the under $400,000 price range. Multiple offers on those properties are not uncommon, while listings at the high end of the price spectrum may go months without even a showing. It takes time for activity generated by sales in the lower price ranges to filter up to the high end. That creates a tremendous opportunity to move up for those who have that option.

Historically low interest rates under 2%, massive government financial stimulus and attractive prices are driving the central Alberta market at the moment. It’s difficult to predict what the future holds, but we firmly believe that Alberta will survive to lead the county economically for the foreseeable future.

Rocky Mountain House Market Update September 1, 2020

The housing market in central Alberta continued to rebound in August with sales up 21.6% compared to August 2019. Year to date sales have not quite caught up to last year’s, but are only down 6.4%, which is remarkable considering what was happening in April and May. In the meantime, the number of active listings in almost central Alberta market is down. The result is a return to balance or close to balance in most of those markets which will keep prices stable.

It’s important to understand that there are markets inside our markets. The vast majority of the activity in central Alberta in recent months has been focused in the under $400,000 price range. Multiple offers on those properties are not uncommon, while listings at the high end of the price spectrum may go months without even a showing. It takes time for activity generated by sales in the lower price ranges to filter up to the high end. That creates a tremendous opportunity to move up for those who have that option.

Historically low interest rates under 2%, massive government financial stimulus and attractive prices are driving the central Alberta market at the moment. It’s difficult to predict what the future holds, but we firmly believe that Alberta will survive to lead the county economically for the foreseeable future.

Mid-Month Market Update October 15, 2020

Central Alberta sales in the first two weeks of October were down 17% compared to the first two weeks in September this year, but are up 28% compared to the first two weeks of October 2019.  The number of active listings is down almost 25% compared to last year at this time.  Supply and demand have moved closer to balance which is what supports a healthy market. There have been some positives for our economy in the news lately – the Line 3 pipeline to the U.S. won another court challenge, the Trans Mountain Pipeline is quietly progressing with more construction underway, and the Alberta Government recently announced a $45 million clean energy and organic fertilizer facility will be constructed in Lacombe.  These aren’t earth shattering developments, but they are the tiny glimmers of light we are looking for as we move forward. 

Innisfail Market Update October 1, 2020

Central Albertans have demonstrated their enthusiasm for home ownership over the last four months. No one really knew what to expect as we came out of the Covid 19 lockdown, but our homebuyers knew what they wanted. Sales in central Alberta were strong again in September, up 22.5% compared to September 2019. And year to date sales to the end of September are off compared to the same time last year by just 3%. The Red Deer and Penhold markets have moved into “balance”, while the other central Alberta markets have moved closer to balance. Spectacular results considering what we were hearing in March and April.

The majority of sales activity continues to happen in the lower price ranges, but we are starting to see interest pick up in the higher ranges which is normal. Every recovery starts at the low end and gradually moves up. What is fueling the spike in sales? In our opinion, a number of things. Five year mortgage rates under 2% (the lowest in history) combined with the lowest prices in six years, maybe even since 2006 in some cases. Also, the federal government has pumped $350 Billion into the economy over the last few months and that money has to be going somewhere. Finally, it appears that many people are tired of Covid, tired of the lockdowns and restrictions and just want to get on with living and”where there is a will, there’s a way.”

Mid-Month Market Update September 15, 2020

Residential sales in central Alberta were up 4.4%  compared to the same period in August while the number of active listings dropped by 4%.  It’s difficult to explain exactly why the market continues to do relatively well, but there are three factors we believe are having an impact:

  • Mortgage Interest rates below 2% are very attractive to first time and move up buyers
  • The federal government has pumped $300+ billion into the economy – people are spending less on entertainment and travel etc. which means they have money to buy or upgrade their homes.
  • People are tired of Covid and want to get on with their lives and their plans

Whatever the reason, a strong real estate market is good for the economy.  Every transaction provides work for lawyers, mortgage brokers, realtors, movers, property inspectors, banks, cleaners, home stagers, handymen etc.

In spite of a recovering market, prices are the lowest they’ve been for years.  Those low prices combined with very low interest rates means there is still tremendous value for homebuyers.  This is likely the opportunity of a lifetime.

Innisfail Market Update September 1, 2020

The housing market in central Alberta continued to rebound in August with sales up 21.6% compared to August 2019. Year to date sales have not quite caught up to last year’s, but are only down 6.4%, which is remarkable considering what was happening in April and May. In the meantime, the number of active listings in almost central Alberta market is down. The result is a return to balance or close to balance in most of those markets which will keep prices stable.

It’s important to understand that there are markets inside our markets. The vast majority of the activity in central Alberta in recent months has been focused in the under $400,000 price range. Multiple offers on those properties are not uncommon, while listings at the high end of the price spectrum may go months without even a showing. It takes time for activity generated by sales in the lower price ranges to filter up to the high end. That creates a tremendous opportunity to move up for those who have that option.

Historically low interest rates under 2%, massive government financial stimulus and attractive prices are driving the central Alberta market at the moment. It’s difficult to predict what the future holds, but we firmly believe that Alberta will survive to lead the county economically for the foreseeable future.