We’re seeing some interesting happenings this year in the Central Alberta real estate market. Inventory has remained rather consistent but sales are lower and average prices are holding their own. Why are stats so up and down?
Earlier this month I posted how sales were substantially lower in June and my estimation to why that’s the case. With sales slower than normal a person would generally think prices would also decrease but that’s not necessarily the case.
I often say months-of-inventory (M.O.I.) is the most important thing to know and understand before buying or selling real estate and right now might be a perfect example as to why.
The number of homes selling can impact average prices but sales alone mean little unless you consider how many items there are available for sale. For example, if there were 3 homes selling each month it wouldn’t sound too promising but what if there were only 2 homes for sale?
Supply and demand will impact prices and right now, we do have a lower demand but we also have a fairly reasonable supply. We don’t have a shortage of homes for sale by any means but we don’t have an overabundance either. And that’s why prices appear to be holding their own.
However, don’t get overexcited about prices up one month in a row but it is nice they aren’t decreasing each month. Prices in 2019 in Central Alberta are averaging out rather evenly and things could be less positive.
When charting sale earlier this month I suggested the reason things are slower is due to a large segment of the population waiting to buy or move and buy. The mortgage rules make it harder for everyone to buy and until that changes, we’ll see slower sales. However, waiting is also causing fewer people to list, less of a panic, and the lower inventory is keeping the market in check.
To talk more about the Central Alberta real estate market and what’s going on from month to month call Blake King Realtor® with BigEarth.ca Realty (403) 350-7672