With the number of active listings significantly increased over this time last year and sales down you may be wondering ‘Is this normal?’
The answer is yes,…and no. The Real Estate Market has an annual cycle, so we can expect to see a certain amount of fluctuation in inventory and demand (sales) depending on the time of year. We all know that when the snow melts buyers start looking to purchase, so they can be settled into their new home before the kids go back to school in September.
What is unusual is not the seasonal fluctuation but the larger economic cycle that is being affected by Alberta’s economy. For example, the amount of inventory (homes for sale) of detached in July of this year has increased from July 2017 by over 39%, while sales are down 4% in the same time period (year to year). This has a tendency to push prices downward, and is a continuation of the trend since 2014 when oil prices dropped.
This type of market will provide both risk and reward. It could be an opportunity for buyers to consider their move. For sellers it means your property needs to stand out from the crowd to increase your chance of selling. Whether buying or selling, remember each community is it’s own micro-market. To find out what’s going on in your neighbourhood please reach out to us, we’d be happy to go over the statistics for your community with you.
Kate and Frank