Lethbridge Real Estate Market Reports

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Lethbridge Real Estate: Articles and Market Trends

07.01.2009
Lethbridge Real Estate - Market Report for May/June 2009
I must humbly apologize for not posting my May market report in a timely fashion. Truth is, real estate sales in Lethbridge have flourished these past two months proving that our local market is as strong as ever. May showed a slight increase in the number of new listings nudging up to 508 from 505 in April. June followed the typical trend with an increase to 586 new listings, likely due vacated student housing put up for sale as the U of L and Lethbridge College classes wrapped up along with homes of families with school aged children preparing for a summer move. The number of expired (unsold) listings also steadily increased from 550 in April to 669 in May and then 755 in June (representing a 48%, 42% and 23% increase in unsolds from April, May and June of 2009, respectively) Total number of sales also increased slightly from April to May (229 to 244) with a significant increase in June to 324 total sales, a nearly 35% increase in total sales! Other than typical market trends for this time of year, the increase in sales could have been influenced by several other factors: 1. Long term fixed mortgage rates took two unexpected leaps upwards at the end of May forcing many of the "fence-sitters" to get off the fence and get into action if they wanted to take advantage of low rates. 2. A renewed sense of faith in our local market due to a steadying of home prices and media voice of "doom and gloom" fading into the distance as they realized their "audience" was growing weary of the same monotonous message of a bursting bubble. 3. More and more financially over extended homeowners realizing that they were in over their heads and facing the reality that it was time to price it right and get out of their current housing situation to explore other options. The "hot zones" in May (with regards to home prices) continued to be the $140,000 - $259,999 with 144 sales (59% of all sales) and the $300,000 - $399,999 with 43 sales (18%). In June, there were strong sales reported from the $110,000 mark all the way up to the $289,999 limit (217 sales or 67%) with the $200,000 - $219,999 range pulling in 14% of those sales. The next hot zone continued to be the $300,000 - $349,999 range with 43 sales (13% of all sales across the board). So, what's in store for July? I suspect a continually growing confidence among first time buyers that now is as good a time as any to get into home ownership indicated again by strong sales in the $110,000 - $280,000 range. Sales in this range may also get a boost as our large student population filters back into the city and realizes that they can own a home or condo for roughly the same cost as it is to rent (and hopefully Mom and Dad are there to back their wisdom). Check back at the end of July to see how our local real estate market performed in the first stretch of summer.

05.25.2009

Lethbridge Real Estate - Market Report for April 2009

April stats clearly indicate that consumer confidence in the Southern Alberta housing market is steadily increasing. Although the number of new listings was very comparable to that of March (511 new listings in March vs. 505 new listings in April), the total number of sales across the board rose from 187 sales in March to 229 sales in April, representing a 22% increase in sales from last month.

The most notable changes I saw from March to April and some interesting points to consider are:

The biggest increase in sales occurred in properties valued between $160,000 and $219,900 making a jump from 40 sales in March to 69 sales in April.
Although sale in the $300,000 - $349,900 range decreased from 25 sales in March to just 18 sales in April, that difference was made up in the $350,000 - $399,900 range which saw 17 sales in April as compared to just 7 sales in March. This may also be an indication of consumer confidence returning as people realize that real estate is generally a safe investment and feel more confidence in purchasing a larger home.

Here is my advice to both buyers and sellers in today's market:
Buyers:
If you find a property that you like and it is priced near market value (and certainly if it appears to be priced below market value), take the time to make an educated decision, but don't be fooled into thinking that home will wait forever. I have seen many disappointed buyers lately who waited too long thinking if they held out, the seller's would be more motivated and they would get a better price on the home, and then learning that it sold while they were waiting. I have also seen many properties receive multiple offers in the first few days. Your best bet is to hire a professional REALTOR to work as your buyer's agent. They will be able to do their own assessment of any property you view and to determine if it is priced at (or possibly below) market value and to alert you of new properties that are priced within current market guidelines.

Sellers
I have seen seller's take a beating in previous months, due either to pricing their home at a number higher than the market could bear, or simply because they were caught in the wrong cycle of the market combined with an oversupply of homes for sale. In my opinion, the bottom has come and gone and buyer's have taken note. Supply continues to diminish and interest rates are holding at all time lows. It is still very important to price your home attractively and make it show at it's best, but a balanced market has already returned in many price ranges and with the decrease in homes currently for sale, we will continue to see it in the remaining ranges.

Lethbridge and District Association of REALTORS
MLS Statistic Report
[APRIL 2009 ]

	2009	2008	2007	%INC/DEC
	2009	2008	2007	[ 2008 - 2009 ]
Total # of Listings [Month]	505	615	400	-18%
Total # of Listings YTD	1872	2088	1496	-10%
Total # of Expired Listings [Month]	144	105	35	37%
Total # of Expired Listings YTD	550	372	119	48%
Total # of Sales [Month]	229	278	320	-18%
Total # of Sales YTD	616	883	1080	-30%
Total Sales Dollar Volume [Month]	$55,450,955	$66,954,935	$72,997,276	-17%
Total Sales Dollar Volume YTD	$147,880,661	$221,181,172	$230,820,579	-33%

NUMBER OF UNITS SOLD BY PRICE	2009		2008
NUMBER OF UNITS SOLD BY PRICE	MONTH	YEAR	MONTH	YEAR
Under 50,000	1	10	7	21
50,000 - 79,999	8	12	13	29
80,000 - 109,999	5	14	7	27
110,000 - 139,999	10	32	14	53
140,000 - 159,999	12	36	12	44
160,000 - 179,999	28	61	21	65
180,000 - 199,999	17	45	24	73
200,000 - 219,999	24	58	23	60
220,000 - 229,999	12	28	14	45
230,000 - 239,999	13	41	10	28
240,000 - 249,999	5	30	6	37
250,000 - 259,999	15	34	19	47
260,000 - 269,999	10	32	20	58
270,000 - 279,999	9	20	10	33
280,000 - 289,999	6	14	6	29
290,000 - 299,999	3	11	4	21
300,000 - 349,999	18	66	37	105
350,000 - 399,999	17	39	13	43
400,000 - 499,999	11	22	15	39
500,000 - 699,999	5	9	1	14
700,000 - 999,999	0	2	1	7
1,000,000 +	0	0	1	5

04.11.2009

Lethbridge Real Estate - Market Report for March 2009

Welcome to the Lethbridge Real Estate Market Report for 2009. Looking at the stats for March 2009 shows that as expected with the onset of spring, the number of homes listed for sale last month increased to 511 up from 395 in February. This increase in homes on the market also brought a rise in the number of homes that expired unsold, up from 108 in February to 132 in March.

Here's the good news: If you had a home for sale in the price range of $140,000 - $269,900, you had a very good chance of getting the much coveted SOLD sign put out on your front lawn. 59% of all sales across the board happened in this range. The other "hot" zone was the $300,000 - $349,900 with 25 sales representing 13% of all sales last month. My educated guess would say two things about which types of buyers are most active in the marketplace right now:

1.     First time home buyers looking in the $140,000 - $270,000 range and
2.     Homeowners who sold a home in the previous range in order to move up to a home in the $300,000 - $350,000 range.

Here's the not so great news: If you have a home not in one of these two ranges, you have your work cut out for you. There were just 15 sales in the $350,000 - $499,900 range accounting for a mere 8% of all sales. At the time of writing, there are currently 182 single family homes for sale in this price range. If last month continues into April, that will mean that just 15 of these homes will sell by the end of the month.

So what can a seller in this price range do to make their home stand out in the crowd?

1.     Your home must show at a perfect 10. Buyers in this range are not likely to overlook major repairs that have been unattended to or a home that looks anything less than that where Mr. and Mrs. Clean live. If necessary, hire a staging professional and clean, clean, clean!

2.     Your price must reflect your motivation to sell. If you don't need to sell and aren't serious about pricing your home competitively, you may want to stay put until conditions are more favourable.

3.     Hire a professional REALTOR who knows the market and has a strong marketing plan and the tools that will get your home the exposure it needs to get SOLD.

Lethbridge and District Association of REALTORS
MLS Statistic Report
[MARCH 2009 ]

	2009	2008	2007	%INC/DEC
	2009	2008	2007	[ 2008 - 2009 ]
Total # of Listings [Month]	511	530	430	-4%
Total # of Listings YTD	1367	1473	1096	-7%
Total # of Expired Listings [Month]	125	96	37	30%
Total # of Expired Listings YTD	408	267	84	53%
Total # of Sales [Month]	187	244	336	-23%
Total # of Sales YTD	387	605	760	-36%
Total Sales Dollar Volume [Month]	$44,326,637	$62,584,130	$72,316,408	-29%
Total Sales Dollar Volume YTD	$92,429,706	$154,226,237	$157,823,303	-40%

03.10.2009

Lethbridge Real Estate - Market Report for February 2009

Looking at the Lethbridge and District Association of REALTORS MLS Statistic Report for February this afternoon truly inspired me. It may have also been the lovely spring weather we had here today paired with the Bank of Canada's overnight rate dropping to an all time low of 0.5%, but it seems there may be be a light at the end of the real estate tunnel after all!

With much to celebrate if you are in the market to purchase a home, the February stats for our local board also provide some encouragement to home sellers in Lethbridge who have struggled through a long, cold winter of slow sales and declining home values.

The stats below show a 14% decrease in the number of homes put up for sale in the month of February when compared to the January. The number of homes for sale that expired unsold also decreased from 175 in January to 109, a decrease of 37%. Less homes for sale in Lethbridge and more of the ones that are for sale selling.... it appears that a balance may be very near in our local market.

But perhaps the most promising statistic was the total number of sales in February: up to 124 total sales from a dismal 76 sales in January, representing a 39% increase. The average price of a single family home also jumped from $223,450 in January to $248,055 in February.

The top 3 price ranges for sales were the $300,000 - $349,999 range with 18 sales (15%), followed by the $230,000 - $239,900 and $200,000 - $219,999 ranges with 11 sales in each category (representing 9% each).

We may want to chalk all this up to a bit of spring fever, but I personally think that buyers in our local market have FINALLY been able to tune out the media and realize that REAL ESTATE IS LOCAL. Lethbridge has always been and continues to be a great place to buy a home and now you can do so at the lowest mortgage rates EVER!!!

Give me a call or text me at 403-715-7653 if you are ready to buy or if you would like more information on Lethbridge and area real estate.

02.10.2009

Lethbridge Real Estate - Market Report for January 2009

January started as a month of fresh beginnings for many and before I report on market stats, I think it is wise to note a trend that I feel will skew market statistics slightly this month. Occasionally, sellers will pull a home off the market over the Christmas holidays and relist it for sale in the New Year. I feel this flood of "new" listings may have artificially increased the total number of new listings for January.

With that said, here's the skinny for January 2009:

1. Currently there are 613 homes for sale in Lethbridge (435 single family, 152 condo, 26 mobile homes) which is up 47 listings from the beginning of January.

2. 50 homes sold in the city of Lethbridge in the month of January (Down from 55 sales in December)

3. The three most active price ranges for sales board wide were $160 - $179,999 with 12 sales, $180 - $199,999 with 8 sales and 3 ranges tied at 7 sales in each ($200 - $219,999, $240 - $249,999 and $350 - $399,999)

So my question is, does the decrease in sales imply that buyer's are still stalling and waiting for the market to bottom out? I don't think so. Does this mean that there are a lot of buyers out there trying to get into the market and are not able to obtain proper financing due to the credit crunch and tighter lending practices? I say BINGO.

Every day I see several listings that were "Pending Sale" come through as "Reactivated". So what is likely happening here?

- Appraisals are coming in less than the buyer's offered purchase price and the banks are pulling their financing

- Diligent buyers with pre-approved mortgages are making offers, and then the banks and brokers are putting out the hoops for them to jump through and they are not succeeding in the jumping contest.

So what can a buyer do to get into the housing market despite the
efforts of a gun shy financial institution?

1. Expect to provide every piece of paper imaginable to your banker / broker with regards to your finances. Communicate and co-operate with your mortgage specialist / broker and make sure you provide all the information they request. Remember, someone is putting hoops out for them as well.

2. Have a plan B. Talk to a friend or relative who may be able to cosign for you if you suddenly can't qualify on your own.

3. Make sure your REALTOR performs their own market analysis on a property before you make an offer on it. Even if it's worth X amount of dollars in your mind, it's the bank's opinion that matters right now.

4. Be persistent in your thinking and don't miss your opportunity to own a home simply because the banks are making it more of a challenge!

06.10.2008
For Rent - Is Becoming a Landlord for You?
Purchasing real estate to be used as a rental property can be a source of passive income as well as an asset to your portfolio. Here are some things to consider when preparing to purchase a rental property: 1. Familiarize yourself with all the costs involved. Consider expenses such as property taxes, insurance, property management, repairs and maintenance. You should also know what the vacancy rates are in the area and have a sufficient vacancy allowance set aside to cover any long periods of vacancy. 2. Know the law. Both landlords and tenants have different rights and responsibilities and these may vary from province to province. Get a copy of the Residential Tenancies Act (Alberta) from the Queen's Printer and get to know this information well in advance of posting the "For Rent" sign. Also, be aware of any municipal bylaws that may affect your role as a landlord, for example, changes to secondary suites . 3. Select your tenants. Do some research into the best places to advertise for tenants. Be aware of what questions you can ask potential tenants without being discriminatory. When you find a good candidate, prepare and sign an appropriate lease, do a thorough inspection of the property together, secure a deposit and commence the agreement. Click here for more information for landlords and tenants in Alberta. More info for Landlords and Tenants

05.11.2008

Renovate vs. Move

Renovate vs. Move: What is the best choice for you

When deciding whether to remodel your home vs. move, you will want to consider the return on renovation investments. Here are some projects for which the Appraisal Institute of Canada's members projected average payback value ranges.

Top four greatest payback potentials:

Bathroom renovation (75-100%)
Kitchen renovation (75-100%)
Interior painting (50-100%)
Exterior painting (50-100%)

Ten average payback potentials:

Roof shingle replacement (50-80%)
Furnace / heating system (50-80%)
Basement renovation (50-75%)
Recreation room addition (50-75%)
Installing a fireplace (50-75%)
Flooring (50-75%)
Constructing a garage (50-75%)
Window / door replacement (50-75%)
Building a deck (50-75%)
Central air conditioning (25-75%)

Six lowest payback potentials:

Landscaping (25-50%)
Interlocking paving (25-50%)
Building a fence (25-50%)
Asphalt paving (20-50%)
Adding a swimming pool (10-40%)
Installing a skylight (0-25%)*

For an unbiased, impartial home renovation cost-benefit valuation, consult an accredited member of the Appraisal Institute of Canada. You can find the names of appraisers in your area at www.aicanada.ca under the heading "Find an Appraiser".

*Information from the Appraisal Institute of Canada's 2004 Home Renovation Survey. Consumers should be aware that home values and returns on renovation investments are dependent on many factors such as the location of the property, the neighbourhood and notably, the quality of workmanship and materials. For more information go to www.aicanada.ca/renova.