Although Sundre has not escaped the prolonged economic downturn unharmed, evidence that this municipality is weathering the storm better than some can be found in the local real estate market.
“I'm finding that it's still an active market,” said Shelley Kohut, a local realtor.
“Recreational properties are doing extremely well. Prices have come down, making them more attractive to prospective buyers,” she said.
Considering the economic situation, Kohut said she was surprised by how well the recreational market is doing this year.
Additionally, the market for agricultural properties is also “doing very well and is quite strong. I think that has to do something with livestock prices as well as the fact people aren't really comfortable having money in the stock market right now, so they'd prefer to put it in land.”
Even the entry-level market seems to be doing fairly well, she said.
“Although the economy is a little shaky right now, interest rates are exceptional, so it is actually cheaper right now for somebody to purchase than to rent.”
However, activity on higher-end properties and acreages, as well as mid-level price range homes, has really slowed down, she said.
“It's a buyer's market, for sure.”
She anticipates a continued decline in property prices over the coming year. Even if the oil and gas industry suddenly jumped back up to prosperity tomorrow, property prices likely wouldn't recover quickly, she said.
People looking to buy properties in Sundre or the surrounding area represent a varied demographic ranging from seniors to young families and single professionals, she said.
Having been involved in the real estate market in Mountain View County for 27 years, including the past 16 years in Sundre where she has lived since 2000, Kohut said she recalls a time during the late 1980s and early 1990s when interest rates ranged as high as 14-20 per cent. Today, the market for residential properties is boasting interest rates as low as between two and three per cent and even slightly lower in some cases, she said.
Another local realtor told the Round Up the average seller is getting about 95 per cent of the asking price.
“Offers are coming in about five per cent less, on average,” said Sarah Kennedy.
“We're in a pretty balanced market.”
There is a fairly high inventory in Sundre, especially in the northwest corner of town near the new developments. A few years ago, those properties were selling at slightly higher prices, which have since been brought down a bit leaving little room for manoeuvrability on what sellers are asking for, she said.
“Those are hard to sell,” she said, adding there have only been a few sales in that area during the last six months.
She also called the current situation a buyer's market and echoed what Kohut said about acreages and rural properties faring well.
“The sky certainly isn't falling in terms of real estate. We are still seeing things move and move fairly quickly,” said Kennedy.
As the spring market gets into full swing, she anticipates things will pick up.
As of last week, she said there were 153 listings in Sundre and the surrounding area between Bergen and James River.
“It's definitely a good time to buy. Interest rates are low — that's certainly helping things greatly,” she said, adding lenders are also helping more people with deposits.
“It's easier to get onto the housing ladder at the moment than it has been for the last couple of years.”
She has also noticed a variety of people considering Sundre as their next home. From people who want to retire here to younger families looking to settle and raise their children, “there isn't a specific category. There's a real mix of different types of people.”
Some also include Calgary residents who want to escape the “hustle and bustle” and are seeking a lifestyle that's just not available in the city — even if it means commuting, she said.
“It's happening more and more.”
Sundre offers access to good schools and provides a lot of support and services as well as a gamut of activities such as baseball, soccer, hockey and skating, she said.
“It's amazing what this little town manages to put on for kids.”
In Calgary, parents might face a 40-minute drive to get their children to soccer practice after school, she said.
“It's a lot easier here.”
