CARSTAIRS-DIDSBURY - Housing prices and sales in Central Alberta declined in 2018 compared with 2017 as a result of several factors, including job market weakness and lending restrictions, experts say.
There are several important numbers which show real estate trends including sales, prices, and inventory levels (number of properties available to purchase), as well as months of supply, which is the number of months it would take for the current inventory of homes on the market to sell given the current pace of monthly sales.
Months of supply is determined by the number of units on the market divided by the number of homes selling each month. Benchmark price is the price of a typical home in an area.
Ann-Marie Lurie is the chief economist for the Calgary Real Estate Board (CREB), which covers not only the city but surrounding areas, including Mountain View County.
She said that in Didsbury sales and inventory levels have been relatively similar to last year whereas new listings have decreased by 20 units.
"Months of supply have reached 7.6 months and benchmark price for detached properties have decreased by one per cent," she said.
Lurie said that in Carstairs, sales have decreased year-over-year by 18 units whereas new listings and inventory have increased by 27 units and 15 units, respectively.
"Months of supply have reached 11.8 months and benchmark price for detached properties have decreased by two per cent," she said.
Cindy Tippe, a Didsbury-based realtor with RE/MAX ACA, said that the market in Didsbury has been slightly slower this past year.
"We currently have 75 properties for sale (15 are commercial) and the average price is about $270,000," said Tippe. "Sales in December were up compared to other years but overall in 2018 sales were down by about five per cent.
"There are several areas in Alberta with very challenging and slower markets. I think we are doing OK in this area but I do have concerns as the economy slides."
New homebuyers are faced with changes in mortgage requirements and increases in interest rates.
"I do find, however, that people who live in or move to small towns don't tend to max themselves out as much as you would hear about in the cities," she said.
There are many ways for young potential homebuyers to prepare for their first house, she said.
"Young people can plan ahead when looking to buy a new home by reducing their debt, maintaining a good credit rating, having enough for a good-sized down payment and for expenses that will incur during the home buying process, she said, noting those expenses can include legal fees, inspections and moving expenses.
"It is also essential to be realistic about what kind of house your money will buy you and get pre-approved before you start looking."
Price declines occurred across all product types and have caused citywide figures to remain over nine per cent below the monthly highs recorded in 2014.
"Falling oil prices, persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year," said Lurie.
Statistics from the CREB showed that housing sales in Calgary for December dropped 21 per cent to 794 units over the same time in 2017. At 16,144 units, 2018 sales were 15 per cent lower than 2017 and nearly 20 per cent below long-term averages."
Cindy Tippe,
Didsbury-based realtor with RE/MAX ACA
