Average prices in Central Alberta took a hit through the last half of 2018 and home owners planning to sell in 2019 will probably feel the effects even more.
2018 wasn’t a good year for Central Alberta real estate after the Bank of Canada stiffened lending rules and made it harder to buy the same house you could’ve bought in 2017. And, because buying slowed so did average sale prices.
Slower sales contributed to higher inventory and in-turn lower prices. I feel like I write too often regarding high inventory rates and their effect on pricing and we witnessed it this past year.
Even if we had higher sales in 2018 we’d have still have seen a decrease in average prices. The new mortgage rules had buyers required to qualify at a higher rate than prior to 2018. Even if everything else remained the same, buyers would qualify to buy lower priced property than before 2018.
The data (picture) above shows 4-month running average at the end of December compared to the end of November is -2% lower. Prices are dipping due to high inventory levels and lower than average sales totals and I believe the direction prices go in 2019 will be determined by the market inventory rate or months-of-inventory. Expect to see prices continue downward if too many homes hit the market this spring.
If you would like a specific town or city market report call Blake King with Big Earth Realty anytime at (403) 350-7672 or email firstname.lastname@example.org