We’ve witnessed a topsy-turvy, but mostly downward real estate market since mortgage changes hit January 1st, 2018 but things appear to be normalizing as prices trend upward slightly.
The only way to get a feel for what’s happening with home prices in a market the size of the Central Alberta real estate market is to, not only track each month but to look at the 4-month and 12-running averages.
Below you’ll see an improvement in the monthly average price and an improvement in both the 4-month and 12-running averages
It’s nice when a month shows improved prices but it doesn’t mean much unless the running averages show improvement too.
Higher prices aren’t the most important thing per se but normal market growth and normal growth encourage activity and positively impact the local economy.
Homeowners will be happy to see price improvement because it’s been a while since anyone’s built any equity in real estate. Buyers should take heed though if prices are improving you will pay a higher price waiting too long to buy.
One thing that is likely contributing to a more consistent market it simply everyone being less aware of the past mortgage changes. They appear to have impacted the market the most, even more than when oil prices dropped. The changes are no longer ‘changes’ or ‘news’ so much as just the way things are now.
In 2018 buyers could say, “I qualified for a $350,000 mortgage back in 2017 and now I only qualify at $280,000.” Now the conversation doesn’t include what could have happened. Not only have people planned with the current mortgage rules in place but prices have decreased giving them more bang for their buck now than they had in the first half of 2018.
Homeowners want to know the best time to sell and buyers want to know when they can buy at the best price. It’s hard to say exactly when the best time is but monitoring market news and stats can at least give consumers some direction. If you’d like to discuss the best time to buy or sell property Blake King with Big Earth Realty monitors news and stats to identify and interpret annual and periodic cycles. There’s more to buying and selling than viewing homes and putting a sign on your yard. A plan based on your specific market can improve your bottom line both buying or selling.