Scroll down to see an overview of the Blackfalds, Alberta real estate market through the last 5 years starting January 2013. The 4 charts below paint a decent picture of the market and offer insight to which way a market is trending.
Above we see how listings have increased gradually in Blackfalds over the last 5 years. An increase in listings can affect pricing if sales don’t also increase. Keep in mind, Blackfalds has grown over the last 5 years so naturally the number of homes for sale each year will be higher.
Chart 2 above tracks the number of sales in Blackfalds, Ab each year. Sales dropped a bit in 2015 and they are down again in 2018. Combine fewer sales and a higher number of listings and prices should in turn also decrease.
Here we see pricing has essentially remained flat since 2013 with a slight increase in 2015. The Blackfalds market has faired rather well considering an increase in listings and a decrease in sales since 2013.
If I was to guess the reason why pricing has stayed rather flat when it should have decreased, I would say it’s due more home sales being on the MLS market each year. There are probably more new homes on the MLS market each year as builders find it tougher to sell. Sales have slowed and listings appear higher than they were in 2013, 2014, 2015, but it might be due to more new homes entering the MLS inventory each year. The total homes for sale may have essentially remained the same even though the MLS inventory appears to have increased.
Chart 3 demonstrates prices haven’t been affected much since 2013 but one thing has changed. We have seen the ratio between list price and sale price broaden. In 2014 homes listed were selling on average 1.2% lower than the list price. Now, in 2018 sellers should expect offers to settle just over 2% lower than their list price.
I would attribute the sale price to list price ratio broadening due to increased inventory. Buyers have more choice and they can use that as a bargaining chip when making an offer.
It’s good to have a look at a specific market using the most important stats. It can help if you’re buying or selling and it’s also nice to watch if you’re a homeowner in that specific market. Know your market.
Blake King continually tracks the real estate markets in Central Alberta. Knowing and understanding what’s happening in a specific market will make your decisions more rewarding.