It’s not that bad
Hold onto your hats, Airdrie, as our current market is, in my opinion, not as bad as the media is making it out to be.
Real estate is similar to a roller coaster – there are ups and downs. Here’s something refreshing: this is the first update in 2016 where sales were up on an annual basis. Between April 1 and April 7, there was a 5.8 per cent increase in the number of sales. Reported conditional sales are currently down by 20 per cent, so I’m not expecting this to be the beginning of a sales resurgence.
The most recent repetitive question I’ve been asked by clients, family and friends is, “Where do I need to price my home to get it sold?” The best answer I can give in this market is: “Price it aggressively.”
Unfortunately, the March numbers were not flattering to an optimistic seller. Home sales were at the lowest March level since 2009. On a positive note, over the last three weeks in April we noticed an increase in sales activity in Airdrie.
The $400,000 and lower price ranges were the driving force in the first quarter of 2016 and I suspect this will continue throughout the summer market. With that being said, sellers in the higher price ranges are starting to see more foot traffic as some homeowners are happy to take advantage of this buyers’ market and sell their starter homes to move into a more long-term investment.
“My advice is to take advantage of these low rates and ‘make a move up’ this summer”
Historically it is very typical for inventory levels to climb in the spring market. Interest rates for prospective buyers are still very attractive. An April 7, 2016, update on interest rates provided a five-year fixed best rate of 2.49 per cent and a five-year adjustable rate of 2.35 per cent, which was quite appealing for the Airdrie home buyer or investor.
Any sign of sustained recovery in the energy sector could result in a faster rebound in housing demand, as home buyers waiting for the rock bottom price may re-enter the market in the coming weeks and months of 2016.
My advice is to take advantage of these low rates and ‘make a move up’ this summer. If we remain optimistic about investing in the Airdrie real estate market, our city will continue to be the fastest-growing community in Alberta, ensuring our largest investments hold strong. Let’s rally together Airdrie in hopes that greener grass will turn into greener pockets!
Trenton Pittner, Trentshomes, Legacy Real Estate Services