You’ve probably heard it a dozen times: “The market is crazy!” And the typical response? “Yep, it sure is.” But let’s take a step back and dive into the data to see what’s truly going on in the Central Alberta real estate scene.
June Sales Slowdown: Perfectly Normal
June saw a 10% slowdown in residential MLS sales compared to May. But hold on—this is completely normal! As schools wind down, graduations take place, and families embark on summer vacations, home buying takes a back seat. No need to panic; it’s just a seasonal shift.
Active Listings: A Historical Low
We kicked off July with 319 active listings, which is still less than half of what it was five years ago. This tight inventory is a key factor driving our current market dynamics.
June Sales Figures: A Robust Market
June brought us 294 sales, slightly fewer than last year but nearly 75 more than in June five years ago. This shows that despite a seasonal dip, the market remains strong.
Months of Inventory: A Seller’s Paradise
We currently have just under two months of inventory, signaling a strong seller’s market. This means buyers are competing for fewer homes, pushing prices up and keeping the market competitive.
Supply and Demand: A Subtle Shift
Here’s something intriguing: active listings at the beginning of July were up almost 11% compared to the start of June. This indicates that the tight grip between supply and demand might be starting to loosen.
Price Trends: Rising Steadily
The average single-family sale price in Central Alberta has jumped nearly 12% compared to 2023. These rising resale prices have created an environment where new home construction can effectively compete with existing homes.
New Home Construction: Gaining Momentum
Expect to see more homes popping up in the coming months. Builders are gearing up, and data from the Canada Housing and Mortgage Corporation reveals that May saw over 41 housing starts in Alberta—a record high.
Market Predictions: Summer Lull, Fall Surge
Experts predict a slower summer as families take vacations and focus on fun. But come late August, just before school starts, the market is expected to pick up speed and remain strong through the fall.
The Next Six Months: A Supply and Demand Tug-of-War
The upcoming months will be a tug-of-war between supply and demand. We’ll be watching closely to see how many new homes can fill the current inventory gap. Stay tuned every Monday as we break down the latest market trends.
By examining these data points, we get a clear picture of the Central Alberta real estate market beyond the headlines and hearsay. It's all about understanding the numbers and trends to make informed decisions.
So, while the market may seem “crazy,” a closer look reveals a dynamic and evolving landscape. And as always, I’ll be here to guide you through it all.