The real estate market in Medicine Hat remains slow despite some hope for bigger transactions heading into September.--FILE PHOTO
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The average detached home price in Medicine Hat is approaching $400,000 after sales remained stubbornly on a slow pace in September and sales of other residential properties slowed.
At the same time, developers continue to favour new apartment projects over single-family home construction, and an initial uptick of resale listings in September wasn’t sustained, according to market observers.
“There was some hope that it would be maintained,” said Medicine Hat Real Estate Board president Greg Keen. “But we’re still faced with a very tight conditions, and those trying to get into the market are finding it quite difficult.”
Across all residential property types, listings were about one-fifth lower last month compared to September 2023 – a time of year when properties typically come on to a generally busier market in the early fall.
For the year so far, single-family home sales listings are 10 per cent lower, and sales volume is eight per cent down, but sales value is up by nine per cent.
That market frustration is less for other property classes, but a lack of inventory that realtors have complained about for years continues.
Over 600 single-family sales so far this year produced an average closing price of $388,900 for detached homes. The semi-detached average rose 6 per cent to $352,500, row housing was up 9 per cent to $235,800 and apartment and condo unit prices increased 5 per cent to $199,700.
With inflation slowing in September and another rate cut expected from the Bank of Canada before the end for the year, lending rates could become more attractive.
That will also affect the level at which potential homebuyers can secure pre-approval, but might not spark the wider market as potential benefit is combined with higher prices, said Keen.
“(A rate drop) will be a bit of good news, however we’re far from a balanced market right now and we’ve got a ways to go before it’s good for both sides (buyers and sellers),” he said.
Slower new home permits in the month also put the volume of new detached home construction in the city behind last year’s figures, according to a summary of building permits issued in September.
The city’s planning department states that two new permits brought the year-to-date total to 19 in 2024, three fewer than at September 2023, and almost $2 million lower in assumed value.
Over the same nine months, 96 new apartment units permits have been let in seven projects, for an estimated $13.91 million in construction activity, compared to no projects through most of 2023. A total of 14 duplex permits in 2024 is double the previous year.
In the overall permit figures, commercial upgrades remained strong in the early fall with $2.7 million in expected spending last month. The overall total of $11.1 million is about 8 per cent lower year-to-date.
Across the province
Single-family home selling prices in Alberta’s major markets through nine months in 2024, with year-over-year percentage increase.
Calgary $715,000 +11%
Edmonton $523,600 +8%
Ft. Mac $459,000 –
Red Deer $448,000 +10%
Lethbridge $435,500 +13%
Med Hat $388,876 +9%
Gr. Prairie $375,600 +7%
