We’ve officially entered the Spring season. The heat is on, and we’re excited to see how this goes for the Central Alberta real estate market.   

In March, the number of home sales reported in Central Alberta eased by nearly 30% compared to last year. The total number of transactions recorded was 146, which is down from 192 in February.  

In Central Alberta, real estate sales during this month are much stronger than the activity reported prior to the pandemic.  

The housing market is experiencing mixed conditions right now, with some areas experiencing a high demand for homes and others seeing lower sales volume. With this activity in the real estate market, how are you going to navigate as a potential seller or buyer?  

Keep on reading to find the answers.  

Tight Conditions 

This decrease in activity was due primarily to fewer new listings coming onto the market and a slight increase in inventory levels at their lowest March level since 2007 (the last time we saw an increase). 

According to Alberta Real Estate Association or AREA, the number of units in inventory totaled 340 and 146 units were sold in March, keeping the months of supply relatively low at 2 months. Outside of last year, conditions have not been this tight in March since 2014. 

What does this mean to a Central Alberta home buyer or seller?  

Impact of Low Inventory 

Inventory is a key factor in determining whether or not you can buy a home. When inventory is low, buyers may have fewer options and be more competitive when bidding on homes. Sellers may need to adjust their expectations on sale prices as well. 
 

In general, if there are more buyers than sellers in your area, prices will rise quickly and inventory will decrease as people sell their homes quickly (or move out of town).  

This means that if you're looking for an investment property right now--and don't mind putting a little more equity into a deal to make the numbers work in the short term -you could get lucky and hit and increase in rent along with market appreciation!!! Heck rates might even come down to put the icing on the cake!!!! 

If you're looking for a home in Central Alberta, be prepared for some stiff competition!  

If you find yourself outbid on properties frequently (or if your offer is rejected), consider raising your budget so that you can afford something better than what was originally affordable. 

Meanwhile, if you are sitting on the fence selling your home, our best advice to you is to strike now while the iron is hot.  

In a low inventory real estate market, you can benefit from higher prices for homes due to the abundance of buyers and the scarcity of homes for sale.  

In areas with low housing inventory, sellers can get top dollar for their property, and it's not uncommon to see multiple offers and bidding wars for any type of housing stock. 

However, unless a seller owns a second home, they will need to buy a new house in the same low inventory market, which can be challenging.  

Our advice, gather as much information as you can. Talk to seasoned real estate agents to give you personalized advice on how you can navigate through this real estate market.   

You may also want to check out this comprehensive video about mortgages, interest rates, and all things real estate in Central Alberta. For more information about the Central Alberta real estate market, subscribing to The Property Show will benefit you the most.  

Click on the image to watch the video

 Lastly, check the inforgraphics below to see the important statistics you may want to know about how Central Alberta real estate market did last month.