There is no question: the real estate freight train is speeding down the track and it seems to be picking up velocity as 2021 wears on. However, it’s always important to deep dive into the numbers and understand individual market segments. With over 100,000 people in Lethbridge now, and dozens of subdivisions across all price points, real estate trends in the city are as diverse as the people who live here. What happens on one street doesn’t necessarily reflect the market trends on another.
Months’ inventory is one way to measure if you’re playing in a buyers’ market or seller’s market. 3-4 months’ inventory is considered balanced. Check out some of the numbers as of this writing. Notice the wide variations across different price ranges:
- City-wide months’ inventory (across all price points): 2.6
- $200-$300k: 1.9
- $300-$400k: 1.7
- $400k-$500k: 2.6
- $700k and up: 3+ years’ of inventory
In addition to understanding the shifting price dynamics, it’s wise to take a hard look at where the aforementioned freight train is headed. Recently, the Office of the Superintendent of Financial Institutions (OSFI) signalled another change to lending criteria in Canada. Specifically, conventional borrowers (20% down) could be looking at a more stringent stress test in regard to qualifying rates. As we’ve seen in the past, this could put a drag on real estate demand in some markets.
In short, the market looks to be in for another big shift. We’ve seen this one before. If you own a home and are thinking about making a move, this one’s for you!