City of Lethbridge – Single Family Homes
- Sales to active listings ratio: 26% (165/628)
- For same month last year: 20% (118/605)
- Average sale price: $294,017
- For same month last year: $279,938
- PENDING sales as of this post date: 52
May 2014, Year-to-Date:
- Total number of sales: 526
- For same period last year: 534
- Average sale price: $288,550
- For same period last year: $281,306
City of Lethbridge – Condos
- Sales to active listings ratio: 19% (31/162)
- For same period last year: 9% (16/171)
- Average sale price: $178,231
- For same month last year: $174,463
- PENDING sales as of this post date: 11
May 2014, Year-To-Date:
- Total number of sales: 89
- For same period last year: 73
- Average sale price: $190,393
- For same period last year: $190,140
In 2013, our Spring Bump seemed to hit all at once in April. This year the bump didn’t happen until May. Year-to-date, however, it all looks the same, as we’re tracking just under last year’s sales volume on single-family homes in Lethbridge.
Newer detached homes under $300k do remain a compelling product in west Lethbridge, especially as new starter homes list higher than last year due to increasing lot prices. If we look at homes built in the last 10 years (2004 or later), there have been 15 sales in the last 30 days and only 31 such homes currently listed or under contract. In other words there is only about 2 months’ inventory for that type of home in west Lethbridge.
A lot of folks are
praying waiting for the heated Calgary market to spill over into Lethbridge, much like it did in the last boom. However, analysts are pointing out that the economics simply don’t line up with those of 2006-07. Labour supply isn’t as tight and builders have had more time to catch up and ultimately keep pace with the demands of a growing Alberta population. Mortgage rules are also much stricter today.
Calgary’s sales-to-new listings ratio is now “miles above the national average” but “we’re a long way away from the extreme conditions seen in 2006/07, when almost all new listings were being immediately absorbed, and it’s unlikely that the market is destined to revisit those conditions,” the report says. And “despite the strong rebound in prices, various valuation metrics check in near 10-year averages and comfortably below levels seen during the 2006/07 frenzy.
~ Alberta housing market set to surge: BMO, theglobeandmail.com
Of course, Lethbridge will always enjoy the benefits of a strong provincial economy, one that is roaring past the rest of the country. And we definitely see interest from buyers seeking to either relocate or even just buy property for their adult children attending school here. Whether the big-city boom will ultimately “stick” to the Lethbridge real estate market in a fundamental way is yet to be seen.
Hat tip to Mike Fotiou at FindCalgary.ca for his article titled, Calgary Real Estate Market is Hot but Not 2006 Hot, expounding on the Calgary real estate dynamic in recent posts, in particular, the discussion on CMHC changes as well as the BMO report citation contrasting market fundamentals between the boom and 2014.
*Lethbridge real estate market data provided by the Lethbridge and District Association of REALTORS® and compiled by Karri Flatla. Information herein deemed reliable but not guaranteed.