The Medicine Hat real estate market has remained firm in the first half of 2023 as demand seems to outpace supply of new listings, according to officials at the Medicine Hat Real Estate Board.--News Photo
cgallant@medicinehatnews.com@CollinGallant
At the mid-point of 2023, Medicine Hat’s real estate market remains firm, with demand still outpacing the number of new listings despite higher borrowing rates and rising prices in general, according to industry officials.
That has prices continuing to steadily rise.
“We’re certainly seeing a trend in the last six months and low inventory is keeping it a sellers’ market currently,” said Matt Teel, president of the Medicine Hat Real Estate Board.
“Even when we see listings increase, we’re seeing the sales coincide with that. When I talk with other agents, they’re all saying the same thing – we need to see more inventory come on.”
Across all property classes, new listings were down seven per cent at the end of June year-over-year, including an 11 per cent drop in single-family homes which make up about two thirds of all transactions.
That said, local prices are steadily growing (by four per cent to date in 2023) as the national housing conversation revolves heavily on availability and affordability.
Both are nudging buyers toward action when properties come on the market, either due to fear of losing opportunity or potentially higher costs in the future.
But, said Teel, it is also keeping people in their existing homes until things settle, especially if they have longer-term fixed mortgages at lower rates.
“People really should consider talking to an agent and perhaps facing less competition right now (to sell their home),” he said, adding that activity tends to slow around interest rate announcements, but seems to fully recover within a few weeks.
“It’s almost like sticker shock,” he said. “It’s surprising for a lot of (agents) as well, just how long the market has continued this way.”
Medicine Hat continues to be more moderate than larger markets, but prices are on the rise, according to the latest figures covering the first six months of the year.
Detached single-family homes closed at an average price of $354,078 considering 424 sales from January to June. That’s up 3 per cent in value on 20 per cent fewer sales inside city limits compared to the same time frame last year.
It comes after home prices rose 4 per cent in 2022 as inventory tightened.
On volume, single-family home sales numbered 424 through six months, down 18 per cent.
Prices for semi-detached properties also rose in six months leading up to June 31, by 5 per cent, to an average of $343,850. Row units were down 2 per cent to $215,896 on average. Sales of apartment-style units, like condos, counted 89 and averaged $185,514, up six per cent on the year.
Residential unit prices also rose in 2021 between 4 per cent for houses, less for semis and row, and nine per cent for apartments.
That came with much higher volume compared to a rollercoaster season in 2020 that actually ended with large gains in some property classes.
