WHAT A JOURNEY SO FAR in the first three quarters of 2022! Airdrie has seen more than 660 sales in the past three months alone! It’s been consistent for Airdrie to have an average of 50 conditional sales at any given day over the past few weeks.
Don’t believe what you may hear through the grapevine, that our market has cooled off completely. The most repetitive questions I’ve been asked by clients recently: “Are we going to see a bust in the real estate market? Is it a bubble about to burst? The Bank of Canada’s recent interest rate hikes will affect our market, yes, but I don’t personally believe it’s going to tank. Our city has proven it’s very robust when it comes to our real estate investments and Airdrie will continue to grow in population for quite some time. There are several new major projects on the go throughout our city and the future looks bright in my eyes.
Recently I’ve noticed that properties priced appropriately and marketed correctly are still selling in a timely manner. Historically it is very typical for our local real estate market to slow down over the summer holidays. As of Aug. 8, 2022, the City of Airdrie had 227 active properties for sale including single family, attached homes and condos. Interest rates for prospective buyers are still attractive. An August update on interest rates provides a 5-year fixed rate of 4.59 per cent and a variable of 3.8 per cent, which is still appealing for the Airdrie home buyer or investor!
In recent Calgary Real Estate Board news: “A pullback in mostly detached activity, sales in Airdrie slowed compared both to levels seen earlier in the year and levels recorded last year,” according to CREB chief economist Ann-Marie Lurie.
“Although prices have trended down over the past three months, they remain 20 per cent higher than levels recorded last year. The monthly slippage does not come as a surprise given the pace of growth seen earlier in the year.
“While conditions remain tight, more caution amongst consumers is weighing on their willingness to bid well above list prices; however, with just over two months of supply, the market remains far tighter than anything experienced throughout the recessionary period experienced prior to the pandemic.”
Lurie added: “As expected, the benchmark price did see some slippage relative to levels seen earlier in the year and rising lending rates have cooled much of the bidding-war activity that was driving significant gains earlier in the year; however, prices currently remain more than 12 per cent higher than last year’s levels, still outpacing forecasted price growth for the year.
“As we move forward, we do anticipate further rate gains will weigh on housing activity and prices, but not enough to completely offset the exceptionally strong gains recorded over the first half of the year,” Lurie said.
My advice for buyers: continue to do your due diligence and rely on your local agent of choice’s expertise on the constant changing market conditions. Listen to their advice as they are experienced when it comes to the most up-to-date information you should be aware of. Sellers: continue to be patient for the right buyer to come. Don’t think there’s a problem if your home hasn’t sold overnight. Our turnaround times for a sale are not the same as previously seen earlier in our calendar year.
Trenton Pittner is with Trenton Pittner Group, Legacy Real Estate Services