Local real estate officials optimistic after November ‘rally’

By Collin Gallant on December 7, 2018.

cgallant@medicinehatnews.com @CollinGallant

Local real estate industry officials are still looking to the relative stability in the Medicine Hat market as a positive, but say several questions remain to be answered about what’s happening in the sector.

“It hasn’t been a banner year, but we still have pretty consistent numbers,” said Medicine Hat real Estate Board president Tim Seitz. “We had a little bit of a rally in November, which is encouraging.

“There’s definitely more product on the market right now, and some good buys, so if people are in the buying mood, they’re taking advantage.”

According to new figures released this week, through 11 months, the entire sector is running about eight per cent behind last year’s pace in both volume and value.

While home and condo prices are steady, listings are up and sales are down, at least among detached home listings. Meanwhile condos, townhouses and other properties are continuing to sell at the same strong pace as recent years.

Realtors are generally finding more homes listing vacant, according to Seitz, who says it’s complicated to discern what’s behind it.

One might assume older homeowners could be moving to condos before their residences are sold, but Seitz said he’s found condo living is increasingly popular among entry-level buyers, because of price, or younger homeowners in general.

“There are people moving up in the market, moving out of the market, there can be a lot of different things and a number of different factors — some positive and some negative,” he said.

“For condos we’ve found lots of activity, but weaker prices, which is a different sort of phenomenon.”

The state of affairs was brought up for general discussion a the past two meetings of the municipal planning commission. The number of vacant houses was noted this week by certain councillors as a need to back a labour-supply study in the city.

Seitz believes it could be due to buyers and sellers wanting to settle situations before the winter at the prospect of higher interest rates.

Specific to November, 65 single family homes sold, totalling $19.8 million — six more than last November, while five more condos sold with 25 units moving for a total of $6.6 million.

Through 11 months, single-family sales total 844, with attached receipts adding to $255 million. The same figure in 2017 was 914 sales for $279.8 million. Condo sales are essentially on pace with 2017 however, with 346 sales valued at $72.8 million this year.

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