We were watching home prices gradually climb the last few months in Central Alberta but this month they dipped. I don’t think it’s anything to panic about, one month’s results don’t reflect a trend.
To spot a trend I like to use each month’s average sale price to determine the 4-month and 12-month running averages. A running average better demonstrates how things are changing.
For example, over the last few months, with prices rising gradually, the 12-month running average was still decreasing but it was decreasing less each month. With one more price increase (this month) we may have noticed the 12-month average turn the corner.
However, as you’ll see below and in the chart above, the last 30 days had a lower price average.
The 12-month average had been decreasing each month but decreasing less and less as the 4-month average gradually increased. If July’s price average came in just $9000 higher we would have watched the 12-month average turn the corner and increase.
Unfortunately, the average price of a home in July in Central Alberta dropped 9.5% and that caused our 12-month running average to decrease again slightly.
But let’s not fret yet, we wait and see what next month brings. I still feel we will see the market recover gradually but there might be a few ups and downs.
I will continue to post and talk about average price details each month so everyone can see which direction the market is heading.
Know your market!
If you’d like average pricing using a specific location please email Blake King at hello@BlakeKing.ca anytime or call (403) 350-7672.