Good news: we are slowly crawling out of the real estate trough in Lethbridge… I think. REALTORS® can’t predict house prices any more than economists can accurately predict interest rates. (Many moons ago in university, an economics professor told us that consistently predicting interest rates is not possible. I believed him.) So, until we see a longer term trend and frankly, allow Alberta’s new conservative government opportunity to restore investor confidence, we are simply hoping that what we are seeing this summer continues long term.
Lethbridge city real estate saw a market reversal in 2017 and 2018, causing sales to slow down for the first time since the boom-bust of the early 2000s. Federal changes to the mortgage rules, recessionary factors in Alberta, and a general lack of confidence in the economy, meant that buyers were dropping out of the market and sellers had to get sharp if they wanted to sell in 30 days or less (yes this is possible!).
Overall, the market within the city of Lethbridge is moving in the right direction this year. Average prices (in city) are increased 2.9% YTD as of this writing, and sales increased by 2.7% year over year. However, the overall market dynamic in Lethbridge hasn’t changed insofar that the supply-demand dynamic changes dramatically at the $400,000 price point. That is, homes over $400,000 are a luxury product given the average buyer here simply can’t afford it. Residential permits are up slightly but the trend overall is that builders have pulled back on single-family construction dramatically in the past few years.
My constant caveat with market updates is this: your home, your location, your price range, and your personal circumstances all impact your ability to sell and the price you can sell for.