As the market heats up in Lethbridge, aspirational pricing is creeping back into real estate conversation. Sold signs are going up everywhere. Headlines are buzzing about historically low interest rates. Cabin fever is palpable as people grow restless with continuous health restrictions and lockdowns. And, despite the frigid February weather, it would seem that real estate fever is here to stay for the foreseeable future. Exciting, right?
The problem with fever of any kind is that it causes people to act irrationally. Suddenly a finished yard or new roof should demand double its replacement cost. And living in a home for just a few years should mean ‘return on investment.’
The idea that a roof over our head could earn us big profits is an incredibly seductive idea. Today’s numbers, however, simply don’t bear this out. At least not yet.
Average home prices in Lethbridge haven’t jumped by more than a few percentage points a year in over a decade. Most years we are lucky to track inflation. Our market is stable, not profitable. To price your home beyond what the comparable sales are telling us is to risk damaging the market value of your greatest asset, and badly. Before taking that leap of faith, watch my video below. Then request a market evaluation to find out how we will ensure you get top dollar in today’s ever changing real estate market.