To give a broad representation and a better idea of which direction prices are trending I’ve decided to post Central Alberta’s running real estate price averages. I’ll post each of the last 12 month’s average, the 12 month running average and post the 4-month running average (below) to see where we’re going.
The 12 month running average in Oct 2017 was $308,671
The 12 month running average in Apr 2017 was $303,436
Current 12 month running average is $301,772
From October 2017 to April 2018 the 12 month home price running average in Central Ab dropped 1.7%. Now, a month later, the 12-month running average is another 0.5% lower. Does this mean prices are gradually getting lower? Does this mean home prices have gone down?
Using the last 12 months to determine the price average gives a less immediate and less accurate number. Using the average over the last few months (data below) gives us a better indication of what’s currently happening. Looking at the last 4 months average, prices have increased 0.7%. The important point here is prices have increased as of recent and that’s a good thing to see after the most recent mortgage rules sent home buyers shopping lower prices.
Does the 4-month 0.7% increase indicate home prices are increasing? Maybe but not necessarily. Even though we see a little increase over the last 4 months, comparing it to the same 4 months a year earlier, prices are much lower (7%) now. The recent increase could be due to some higher priced homes selling and or buyer activity up during this spring market.
Does lower home price during the 1st quarter of 2018 indicate home prices have gone down? It might but we have to consider other possibilities too. More people are having to buy less expensive homes since mortgage rules changed at the end of 2017 – everyone now qualifies for lower mortgages. Keep in mind though, everyone shopping at lower prices will have an impact on pricing…
Let’s see what next month brings…
I will post and talk about average price details each month to track which direction our market’s heading.
Check back each month to see how your market trends. 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.