This has been one of those weeks. Even 2020 would call it a highlight!
With rising cases here in Alberta we have started to see lockdowns reemerge as the government tried to flatten the curve. However, as we had seen in March and April, real estate is something that does continue. Just to recall, in March real estate professionals were deemed an essential service and although we have seen strict protocols in how we operate, we continue to work through the pandemic and lockdowns.
So what that said, what happened this week in the market? If you were expecting a decline in inventory as a lockdown becomes a more common issue, you’d be right. Across the segments, we have seen reductions in inventory. We have seen a 4% decline in inventory week over week led by the single-family detached market.
The price however is reversely correlated to inventory. The more we have to offer, the lower the price becomes and vice versa. Well, as we talked about in previous issues, the lower rate has fueled buyers to take action this year in our market. The overall benchmark price has increased by 0.6% from this same time last year. This is led by significant gains in the detached market that hold a stronger weight with its higher price point.
Finally, sales are up 31.1% from the same 30 days running total from a year ago. This is a significant jump, which is causing the prices to increase and inventory to shrink.
But is this sustainable? Due to the vaccine now not only being a dream for most of us but a reality, the big banks are already speaking about an increase in the rates to start and fuel the economy once again. Will this happen soon? I don’t think it will until mid next year when a distribution plan is in place, but who knows at this point. Buyers need to keep an eye on the expiration dates of their pre-approvals and understand that if the interest rate you receive changes, your purchasing power will also decline.
Sellers, because of the shut down in the market in March and April, you can see right now, which would normally be a slower time in our market is still very much active. If you want to sell soon or are waiting to see what the spring market will bring, I would urge you to consider selling now with the rates being where they are.
Thanks again for your time. I truly appreciate it. I hope you can find value in this breakdown and that you are open to sharing it with your friends and family. My business is built on referrals and I hope I can be the realtor you choose to entrust your friends and family with for their real estate needs.